Financial Institutions Regulatory and Interest Rate Control Act
PL 95-630 (H.R.14279), enacted 11/10/1978

PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3641 
Public Law 95-630 
95th Congress 
An Act 
To extend the authority for the flexible regulation of interest rates on deposits 
and accounts in depository institutions. 
Nov. 10. 1978 
[H.R. 14279] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America 
in Congress assembled, That this Act may Financial 
be cited as the "Financial Institutions Regulatory and Interest Rate Institutions 
Control Act of 1978". 
Regulatory and 
Interest Kate 
T I T L E I — S U P E R V I S O R Y A U T H O R I T Y OVER 
f^^g"' ^""^ ""^ 
D E P O S I T O R Y I N S T I T U T I O N S 
12 use 226 note. 
SEC. 101. The Federal Reserve Act is amended by redesignating 
sections 29 and 30 as sections 30 and 31, respectively, and by inserting 
after section 28 a new section as follows: 
"SEC. 29. (a) Any member bank which violates or any officer, 
director, employee, agent, or other person participating in the con-
duct of the affairs of such member bank who violates any provision of 
section 22 or 23A of this Act, or any regulation issued pursuant thereto, 
shall forfeit and pay a civil penalty of not more than $1,000 per day 
for each day during which such violation continues. The penaltj^ shall 
be assessed and collected by the Comptroller of the Currency in the 
case of a national bank, or the Board in the case of a State member 
bank, by written notice. As used in this section, the term 'violates' 
includes without any limitation any action (alone or with another or 
others) for or toward causing, bringing about, participating in, coun-
seling, or aiding or abetting a violation. 
"(b) In determining the amount of the penalty the Comptroller of 
the Currency or the Board, as the case may be, shall take into account 
the appropriateness of the penalty with respect to the size of the 
financial 
resources and good faith of the member bank or person 
charged, the gravity of the violation, the history of previous violations, 
and such other matters as justice may require. 
"(c) The member bank or person assessed shall be afforded an oppor-
tunity for agency hearing, upon request made within ten days after 
issuance of the notice of assessment. In such hearing, all issues shall be 
determined on the record pursuant to section 554 of title 5, United 
States Code. The agency determination shall be made by final order 
which may be reviewed only as provided in subsection (d). If no hear-
ing is requested as herein provided, the assessment shall constitute a 
final and unappealable order. 
"(d) Any member bank or person against whom an order imposing 
a civil money penalty has been entered after agency hearing under this 
section ma;^ obtain review by the United States court of appeals for 
the circuit in which the home office of the member bank is located, or 
the United States Court of Appeals for the District of Columbia Cir-
cuit, by filing a notice of appeal in such court within ten days from 
the date of such order, and simultaneously sending a copy of such 
notice by registered or certified mail to the Comptroller of the Cur-
rency or the Board, as the case may be. The Comptroller of the Cur-
rency or the Board, as the case may be, shall promptly certify and file 
12 use 226 note. 
eivil penalty. 
12 use 504. 
12 use 375, 
375a, 375b, 376, 
503. 
12 use 371c. 
Notice. 
"Violates." 
Hearing 
opportunity. 
Review. 
eertification. 
39-194 O-
-pt. 3 
64 : QL3 
92 STAT. 3642 
PUBLIC LAW 95-630—NOV. 10, 1978 
Regulations. 
12 use 505. 
Civil penalty. 
Notice. 
"Violates.' 
Hearing 
opportunity. 
Review. 
Certification. 
in such court the record upon which the penalty was imposed, as pro-
vided in section 2112 of title 28, United States Code. The findings of 
the Comptroller of the Currency or the Board, as the case may be, shall 
be set aside if found to be unsupported by substantial evidence as pro-
vided by section 706(2) (E) of title 5, United States Code. 
" (e) If any member bank or person fails to pay an assessment after 
it has become a final and unappealable order, or after the court of 
appeals has entered final judgment in favor of the agency, the Comp-
troller of the Currency or the Board, as the case may be, shall refer the 
matter to the Attorney General, who shall recover the amount assessed 
by action in the appropriate United States district court. In such 
action the validity and appropriateness of the final order imposing the 
penalty shall not be subject to review. 
"(f) The Comptroller of the Currency and the Board shall promul-
gate regulations establishing procedures necessary to implement this 
section. 
"(g) All penalties collected under authority of this section shall be 
covered into the Treasury of the United States.". 
SEC. 102. Section 19 of the Federal Reserve Act is amended by adding 
at the end thereof the following new subsection: 
"(j) (1) Any member bank which violates or any officer, director, 
employee, agent, or other person participating in the conduct of the 
affairs of such member bank who violates any provision of this section, 
or any regulation or order issued by the Board pursuant thereto, shall 
forfeit and pay a civil money penalty of not more than $100 per day 
for each day during which such violation continues. The penalty shall 
be assessed and collected by the Board by written notice. As used in this 
section, the term 'violates' includes without any limitation any action 
(alone or with another or others) for or toward causing, bringing 
about, participating in, counseling, or aiding or abetting a violation. 
"(2) In determining the amount of the penalty the Board shall 
take into account the appropriateness of the penalty with respect to the 
size of financial resources and good faith of the member bank or person 
charged, the gravity of the violation, the history of previous violations, 
and such other matters as justice may require. 
" (3) The member bank or person assessed shall be afforded an oppor-
tunity for agency hearing, upon request made within ten days after 
issuance of the notice of assessment. In such hearing, all issues shall be 
determined on the record pursuant to section 554 of title 5, United 
States Code. The agency determination shall be made by final order 
which may be reviewed only as provided in paragraph (4). If no hear-
ing is requested as herein provided, the assessment shall constitute a 
final and unappealable order. 
"(4) Any member bank or person against whom an order imposing 
a civil money penalty has been entered after agency hearing under 
this section may obtain review by the United States court of appeals 
for the circuit in which the home office of the member bank is located, 
or the United States Court of Appeals for the District of Columbia 
Circuit, by filing a notice of appeal in such court within ten days from 
the date of such order, and simultaneously sending a copy of such 
notice by registered or certified mail to the Board. The Board shall 
promptly certify and file in such court the record upon which the 
penalty was imposed, as provided in section 2112 of title 28, United 
States Code. The findings of the Board shall be set aside if found to 
be unsupported bv substantial evidence as provided by section 706 
(2) (E) of title 5, United States Code. 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3643 
" (5) If any member bank or person fails to pay an assessment after 
it has become a final and unappealable order or after the court of 
appeals has entered final judgment in favor of the agency, the Board 
shall refer the matter to the Attorney General, who shall recover the 
amount assessed by action in the appropriate LFnited States district 
court. In such action the validity and appropriateness of the final order 
imposing the penalty shall not be subject to review. 
"(6) The Board shall promulgate regulations establishing pro- Regulations, 
cedures necessary to implement this subsection. 
"(7) All penalties collected under authority of this subsection shall 
be covered into the Treasury of the United States.". 
SEC. 103. Section 5239 of the Eevised Statutes (12 U.S.C. 93) is 
amended by inserting " ( a ) " immediately after "SEC. 5239." and by 
inserting at the end thereof the following new subsection: 
"(b)(1) Any national banking association which violates, or any Civil penalty, 
officer, director, employee, agent, or other person participating in the 
conduct of the affairs of such association who violates any of the 
provisions of this chapter, or any regulation issued pursuant thereto, 
shall forfeit and pay a civil money penalty of not more than $1,000 
per day for each day during which such violation continues. The Notice, 
penalty shall be assessed and collected by the Comptroller of the Cur-
rency by written notice. As used in the section, the term 'violates' "Violates." 
includes without any limitation any action (alone or Avith another or 
others) for or toward causing, bringing about, participating in, coun-
seling, or aiding or abetting a violation. 
"(2) In detenmining the amount of the penalty the Comptroller 
shall take into account the appropriateness of the penalty with respect 
to the size of financial resources and good faith of the association or 
person charged, the gravity of the violation, the history of previous 
violations, and such other matters as justice may require. 
" (3) The association or person assessed shall be afforded an opportu- Hearing 
nity for agency hearing, upon request made within ten days after opportunity, 
issuance of the notice of assessment. In such hearing all issues shall 
be determined on the record pursuant to section 554 of title 5. The 
agency determination shall be made by final order w^hich may be 
reviewed only as provided in subsection (4). If no hearing is requested 
as herein provided, the assessment shall constitute a final and unap-
pealable order. 
"(4) Any association or pers(*n against whom an order imposing Review, 
a civil money penalty has been entered after agency hearing under 
this section may obtain review by the United States court of appeals 
for the circuit in which the homo office of the bank is located, or in the 
United States Court of Appeals for the District of Columbia Circuit, 
by filing a notice of appeal in such court within thirty days from the 
date of such order, and simultaneously sending a copy of such notice 
by registered or certified mail to the Comptroller. The Comptroller Certification, 
shall promptly certify and file in such court the record upon w^hich 
the penalty was imposed, as provided in section 2112 of title 28. The 
findings of the Comptroller shall be set aside if found to be unsupported 
by substantial evidence as provided by section 706(2) (e) of title 5. 
"(5) If any association or person fails to pay an assessment after 
it has become a final and unappealable order, or after the court of 
appeals has entered final judgment in favor of the agency, the Comp-
troller shall refer the matter to the Attorney General, who shall recover 
the amount assessed by action in the appropriate United States district 
court. In such action the validity and api^ropriateness of the final order 
imposing the penalty shall not be subj ect to review. 
92 STAT. 3644 
PUBLIC LAW 95-630—NOV. 10, 1978 
Regulations. 
12 use 375b. 
Loan or extension 
of credit to 
executive 
officers, 
prohibitions. 
12 use 84. 
"(6) The Comptroller may, in his discretion, compromise, modify, 
or remit any civil money penalty which is subject to imposition or 
has been imposed under this section. 
"(7) The Comptroller shall promulgate regulations establishing 
procedures necessary to implement this subsection. 
"(8) All penalties collected under authority of this section shall 
be covered into the Treasury of the United States.". 
SEC. 104. Section 22 of the Federal Reserve Act is amended by add-
ing at the end thereof the following new subsection: 
" ( h ) ( 1 ) No member bank shall make any loan or extension of credit 
in any manner to any of its executve officers, or to any person who 
directly or indirectly or acting through or in concert with one or more 
persons owns, controls, or has the power to vote more than 10 per 
centum of any class of voting securities of such member bank, except 
in the case of such a bank located in a city, town, or village with less 
than thirty thousand in population, in which case such per centum 
shall be 18 per centum, or to any company controlled by such an execu-
tive officer or person, or to any political or campaign committee the 
funds or services of which will benefit such an executive officer or 
person or which is controlled by such an executive officer or person, 
where the amount of such loan or extension of credit, when aggregated 
with the amount of all other loans or extensions of credit then outstand-
ing by such bank to such executive officer or person and to all com-
panies controlled by such executive officer or person and to all political 
or campaign committees the funds or services of which will benefit 
such executive officer or person or which are controlled by such execu-
tive officer or person, would exceed the limits on loans to a single bor-
rower established by section 5200 of the Revised Statutes, as amended. 
For purposes of this paragraph, the provisions of section 5200 of the 
Revised Statutes, as amended, shall be deemed to apply to a State 
member bank as if such State member bank were a national banking 
association. 
"(2) No member bank shall make any loan or extension of credit in 
any manner to any of its executive officers or directors, or to any person 
who directly or indirectly or acting through or in concert with one or 
more persons owns, controls, or has the power to vote more than 10 
per centum of any class of voting securities of such member bank, or to 
any compan}?^ controlled by such an executive officer, director, or per-
son, or to any political or campaign committee the funds or services 
of which will benefit such executive, director, or person or which is 
controlled by such executive officer, director, or person, where the 
amount of such loan or extension of credit, when aggregated with the 
amount of all other loans or extensions of credit then outstanding by 
such bank to such executive officer, director, or person and to all com-
panies controlled by such executive officer, director, or person and to 
all political or campaign committees the funds or services of which wull 
benefit such executive officer, director, or person or which are con-
trolled by such executive officer, director, or person, would exceed 
$25,000, unless such loan, line of credit, or extension of credit is 
approved in advance by a majority of the entire board of directors 
with the interested party abstaining from participating directly or 
indirectly in the voting. 
"(3) No member bank shall make any loan or extension of credit 
in any manner to any of its executive officers or directors, or to any 
person who directly or acting through or in concert with one or more 
persons, owns, controls, or has the power to vote more than 10 per 
centum of any class of voting securities of such member bank, or to any 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3645 
company controlled by such executive officer, director, or person, or 
to any political or campaign committee the funds or services of which 
will benefit such executive officer, director, or person or which is con-
trolled by such executive officer, direx;tor, or person, unless such loan 
or extension of credit is made on substantially the same terms, includ-
ing interest rates and collateral, as those prevailing at the time for 
comparable transactions with other persons and does not involve 
more than the normal risk of repayment or present other unfavorable 
features. 
"(4) No member bank may pay an overdraft on an account at such Overdrafts, 
bank of an executive officer or director. 
"(5) For purposes of this subsection, an executive officer, director, 
or person shall be considered to have control of a company if such 
executive officer, director, or person, directly or indirectly or acting 
through or in concert with one or more other persons— 
"(A) owns, controls, or has power to vote 25 per centum or 
more of any class of voting securities of the company; 
"(B) controls in any manner the election of a majority of the 
directors of the company; or 
"(C) has the power to exercise a controlling influence over the 
management or policies of such company. 
" (6) For the purposes of this subsection— 
Definitions. 
"(A) the term 'person' means an individual or company; 
"(B) the term 'company' means any corporation, partnership, 
business trust, association, joint venture, pool syndicate, sole pro-
prietorship, unincorporated organization, any other form of busi-
ness entity not specifically listed herein, or any other trust, but 
shall not include any insured bank or any corporation the majority 
of shares of which is owned by the United States or by any State; 
"(C) the term 'extension of credit' has the same meaning 
assigned such term in the fourth paragraph of section 23A of this 
Act; 
12 use 371c. 
"(D) a person shall be deemed to be a 'director' of a member 
bank or a 'person who directly or indirectly or acting through or in 
concert with one or more persons owns, controls, or has power 
to vote more than 10 per centum of any class of voting securities 
of a member bank' if such person has such relationship with any 
bank holding company of which such member is a subsidiary, as 
defined by the Bank Holding Company Act (12 IT.S.C. 1841), or 
with any other subsidiary of such bank holding company; 
" (E) a person shall be deemed to be an 'officer' of a member bank 
if such person is an officer of any bank holding company of which 
such member bank is a subsidiary, as defined by the Bank Hold-
ing Company Act (12 IJ.S.C. 1841), or with any other subsidiary 
of such bank holding company; 
"(F) the term 'executive officer' has the same meaning, assigned 
such term under section 22 (g) of this Act; and 
12 USC 375a. 
"(G) the term 'pay an overdraft on an account' means the pay-
ment by a member bank of an amount for an account holder m 
excess of the funds on deposit in the account and does not include 
a payment of funds by the member bank in accordance with either 
a written preauthorized, interest-bearing extension of credit spe-
cifying a method of repayment or a written preauthorized transfer 
of funds from another account of the account holder at that bank. 
"(7) The Board of Governors of the Federal Reserve System may Rules and 
prescribe such rules and regulations, including definitions of terms, as regulations, 
it deems necessary to effectuate the purposes and to prevent evasions of 
92 STAT. 3646 
PUBLIC LAW 95-630—NOV. 10, 1978 
Rules. 
Bank holding 
company, 
termination. 
Notice, hearing 
opportunity. 
12 use 1464 
note. 
Enforcement and 
jurisdiction. 
Savings and loan 
holding company, 
termination. 
Notice, hearing 
opportunity. 
this subsection. The Board may further prescribe rules providing a 
reasonable period of time after the date of enactment of this subsection 
within which the amount of outstanding loans or extensions of credit 
made prior to such date of enactment shall be reduced so as to 
conform to the limitations of this subsection.". 
SEC. 105. (a) Section 5 of the Bank Holding Company Act of 1956, 
as amended (12 U.S.C. 1844), is amended by adding at the end thereof 
the following new subsection: 
"(e)(1) Notwithstanding any other provision of this Act, the Board 
may, whenever it has reasonable cause to believe that the continuation 
by a bank holding company of any activity or of ownership or control 
of any of its nonbank subsidiaries, other than a nonbank subsidiary 
of a bank, constitutes a serious risk to the financial safety, soundness, 
or stability of a bank holding company subsidiary bank and is incon-
sistent with sound banking principles or with the purposes of this Act 
or with the Financial Institutions Supervisory Act of 1966, order 
the bank holding company or any such nonbank 
subsidiaries, 
after due notice and opportunity for hearing, and after 
con-
sidering the views of the bank's primary supervisor, which shall be 
the Comptroller of the Currency in the case of a national bank or the 
Federal Deposit Insurance Corporation and the appropriate State 
supervisory authority in the case of an insured nonmember bank, to 
terminate such activities or to terminate (within one hundred and 
twenty days or such longer period as the Board may direct in unusual 
circumstances) its ownership or control of any such subsidiary either 
by sale or by distribution of the shares of the subsidiary to the share-
holders of the bank holding company. Such distribution shall be pro 
rata with respect to all of the shareholders of the distributing bank 
holding company, and the holding company shall not make any charge 
to its shareholders arising out of such a distribution. 
"(2) The Board may in its discretion apply to the United States 
district court within the jurisdiction of which the principal office of 
the holding company is located, for the enforcement of any effective 
and outstanding order issued under this section, and such court shall 
have jurisdiction and power to order and require compliance there-
with, but except as provided in section 9 of this Act, no court shall 
have jurisdiction to affect by injunction or otherwise the issuance or 
enforcement of any notice or order under this section, or to review, 
modify, suspend, terminate, or set aside any such notice or order.". 
(b)(1) Section 408(h) of the National Housing Act (12 U.S.C. 
1780a(h)) is amended by adding immediately after "under subsection 
(a) (2) ( D ) " in paragraphs (3) (A) and (3) (B) of subsection (h) the 
phrase "or under subsection (h) (5)" and is amended by redesignat-
ing paragraph (h) (5) as (h) (6) and by adding a new paragraph (h) 
(5) to read as follows: 
"(5) (A) Notwithstanding any other provision of this section, the 
Corporation may, whenever it has reasonable cause to believe that the 
continuation by a savings and loan holding company of any activity 
or of ownership or control of any of its noninsured subsidiaries consti-
tutes a serious risk to the financial safety, soundness, or stability of a 
savings and loan holding company's subsidiary insured institution 
and is inconsistent with the sound operation of an insured savings 
and loan institution or with the purposes of this section or with the 
Financial Institutions Supervisory Act, order the savings and loan 
holding company or any of its subsidiaries, after due notice and 
opportunity for hearing, to terminate such activities or to terminate 
(within one hundred and twenty days or such longer period as the 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3647 
Corporation directs in unusual circumstances) its ownership or con-
trol of any such noninsured subsidiary either by sale or by distribution 
of the shares of the subsidiary to the shareholders of the savings and 
loan holding company. Such distribution shall be pro rata with respect 
to all of the shareholders of the distributing savings and loan hold-
ing company, and the holding company shall not make any charge to 
its shareholders arising out of such a distribution.". 
"(B) The Corporation may in its discretion apply to the United 
States district court wdthin the jurisdiction of which the principal office 
of the company is located, for the enforcement of any effective and out-
standing order issued under this section, and such court shall have 
jurisdiction and power to order and require compliance therewith, but 
except as provided in subsection (k), no court shall have jurisdiction 
to affect by injunction or otherwise the issuance or enforcement of any 
notice or order under this section, or to review, modify, suspend, ter-
minate, or set aside any such notice or order.". 
(2) Section 406(f) of the National Housing Act (12 U.S.C. 
1729 (f)) is amended to read as follows: 
"(f) (1) In order to prevent a default in an insured institution or in 
order to restore an insured institution in default to normal operation, 
the Corporation is authorized, in its discretion and upon such terms 
and conditions as it may determine, to make loans to, to purchase the 
assets of, or to make a contribution to, an insured institution or an 
insured institution in default. 
"(2) Whenever an insured institution is in default or, in the judg-
ment of the Corporation, is in danger of default, the Corporation may, 
in order to facilitate a merger or consolidation of such insured insti-
tution with another insured institution or the sale of the assets of such 
insured institution and the assumption of its liabilities by another 
insured institution and upon such terms and conditions as the Corpo-
ration may determine, purchase any such assets or assume any such 
liabilities, or make loans to such other insured institution, or guarantee 
such other insured institution against loss by reason of its merging or 
consolidating with or assuming the liabilities and purchasing the 
assets of such insured institution in or in danger of default. 
"(3) No contribution or guarantee shall be made pursuant to para-
graphs (1) or (2) of this subsection (f) in an amount in excess of that 
which the Corporation finds to be reasonably necessary to save the 
cost of liquidating such insured institution in or in danger of default, 
but if the Corporation determines that the continued operation of 
such institution is essential to provide adequate savings or home 
financing services in its community, such limitation upon the amount 
of a contribution or guarantee shall not apply.". 
SEC. 106. (a) Section 8 of the Bank Holding Company Act of 1956, 
as amended (12 U.S.C. 1847), is amended by redesignating "SEC. 8." 
as "SEC. 8. (a)" and by adding a new subsection (b) to read as follows: 
"(b) (1) Any company which violates or any individual who par-
ticipates in a violation of any provision of this Act, or any regulation 
or order issued pursuant thereto, shall forfeit and pay a civil penalty 
of not more than $1,000 per day for each day during which such viola-
tion continues. The penalty shall be assessed and collected by the Board 
by written notice. As used in the section, the term 'violates' includes 
without any limitation any action (alone or with another or others) 
for or toward causing, bringing about, participating in, counseling, or 
a iding or abetting a violation. 
Enforcement and 
jurisdiction. 
Insured 
institutions, 
default 
prevention and 
restoration. 
Civil penalty. 
Notice. 
"Violates." 
92 STAT. 3648 
PUBLIC LAW 95-630—NOV. 10, 1978 
Hearing 
opportunity. 
12 use 1848. 
Regulations. 
12 use 1844. 
Rules and 
regulations. 
Misdemeanor. 
"(2) In determining the amount of the penalty the Board shall 
take into account the appropriateness of the penalty with respect to 
the size of financial resources and good faith of the company or person 
charged, the gravity of the violation, the history of previous violations, 
and such other matters as justice may require. 
"(3) The company or person assessed shall be afforded an oppor-
tunity for agency hearing, upon request made within ten days after 
issuance of the notice of assessment. In such hearing all issues shall be 
determined on the record pursuant to section 554 of title 5, United 
States Code. The agency determination shall be made by final order 
which may be reviewed only as provided in section 9. If no hearing is 
requested as herein provided, the assessment shall constitute a final and 
unappealable order. 
"(4) If any company or person fails to pay an assessment after it 
has become a final and unappealable order, or after the court of 
appeals has entered final judgment in favor of the Board, the Board 
shall refer the matter to the Attorney General, who shall recover the 
amount assessed by action in the appropriate United States district 
court. In such action the validity and appropriateness of the final 
order imposing the penalty shall not be subject to review. 
"(5) The Board shall promulgate regulations establishing proce-
dures necessary to implement this subsection. 
"(6) All penalties collected under authority of this subsection shall 
be covered into the Treasury of the United States.". 
(b) Section 5 of the Bank Holding Company Act is amended by 
adding the following new paragraph: 
"(f) In the course of or in connection with an application, examina-
tion, investigation or other proceeding under this Act, the Board, or 
any member or designated representative thereof, including any per-
son designated to conduct any hearing under this Act, shall have the 
power to administer oaths and affirmations, to take or cause to be 
taken depositions, and to issue, revoke, quash, or modify subpenas 
and subpenas duces tecum; and the Board is empowered to make rules 
and regulations to effectuate the purposes of this subsection. The 
attendance of witnesses and the production of documents provided for 
in this subsection may be required from any place in any State or in 
any territory or other place subject to the jurisdiction of the United 
States at any designated place where such proceeding is being con-
ducted. Any party to proceedings under this Act may apply to the 
United States District Court for the District of Columbia, or the 
United States district court for the judicial district or the United 
States court in any territory in which such proceeding is being con-
ducted or where the witness resides or carries on business, for the 
enforcement of any subpena or subpena duces tecum issued pursuant 
to this subsection, and such courts shall have jurisdiction and power 
to order and require compliance therewith. Witnesses subpenaed 
under this subsection shall be paid the same fees and mileage that are 
paid witnesses in the district courts of the United States. Any service 
required under this subsection may be made by registered mail, or in 
such other manner reasonably calculated to give actual notice as the 
Board may by regulation or otherwise provide. Any court having 
jurisdiction of any proceeding instituted under this subsection may 
allow to any such party such reasonable expenses and attorneys' fees 
as it deems just and proper. Any person who willfully shall fail or 
refuse to attend and testify or to answer any lawful inquiry or to 
produce books, papers, correspondence, memoranda, contracts, agree-
ments, or other records, if in such person's power so to do, in obedience 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3649 
to the subpena of the Board, shall be guilty of a misdeineaiior and, 
upon conviction, shall be subject to a line of not more than $1,000 or 
to imprisonment for a term of not more than one year or both.''. 
(c) Section 4:08(j) of the National Housing Act 
(12 U.8.(\ 
1730a(]*)), is amended by adding thereto a new paragraph (j) (-l) to 
read as follows: 
"(4) (A) Any company which violates or any individual who 
Civil penalty, 
jjarticipates in a violation of any provision of this section, or any 
regulation or order issued pursuant thereto, shall forfeit and pay a 
civil penalty of not more than $1,000 per day for each day during 
which such violation continues. The penalty shall be assessed and 
Notice, 
collected by the Corporation by written notice. As used in the section. "Violates." 
the term 'violates' includes without any limitation any action (alone 
or with another or others) for or- toward causing, bringing about, 
participating in, counseling, or aiding or abetting a violation. 
" ( B ) In determining the amount of the penalty the Corporation 
shall take into account the appropriateness of the penalty with respect 
to the size of financial resources and good faith of the company or 
person charged, the gravity of the violation, the history of previous 
violations, and such other matters as justice may require. 
"(C) 
The company or person assessed shall be aiforded an 
Hearing 
opportunity for agency hearing, upon request made within ten days opportunity, 
after issuance of the notice of assessment. In such hearing all issues 
shall be determined on the record pursuant to section 554 of title 5, 
United States Code. The agency determination shall be made by final 
order which may be reviewed only as provided in subparagraph (D). 
If no hearing is requested as herein provided, the assessment shall 
constitute a final and unappealable order. 
" ( D ) Any company or person against whom an order imposing a Review, 
civil money penalty has been entered after agency hearing under this 
section may obtain review by the United States court of appeals for 
the circuit in which the home office of the company is located, or in 
the United States Court of Appeals for the District of Columbia 
Circuit, by filing a notice of appeal in such couil within thirty days 
from the date of such order, and simultaneously sending a copy of 
such notice by registered or certified mail to the Corporation. The 
Certification. 
Corporation shall promptly certify and file in such court the record 
upon Avhich the penalty was imposed, as provided in section 2112 of 
title 28, United States Code. The findings of the Corporation shall be 
set aside if found to be unsupported by substantial evidence as 
provided by section 706(2) (E) of title 5, United States Code. 
" ( E ) If any company or person fails to pay an assessment aftei- it 
has become a final and unappealable order, or after the court of 
appeals has entered final judgment in favor of the agency, the 
Corporation shall refer the matter to the Attorney General, who shall 
recover the amount assessed by action in the appropriate United 
States district court. In such action the validity and appropriateness 
of the final order imposing the penalty shall not be subject to review. 
" ( F ) The Corporation shall promulgate regulations establishing Regulations, 
procedures necessary to implement this paragraph. 
"(G) All penalties collected under authority of this paragraph 
shall be covered into the Treasury of the United States.". 
SEC. 107. (a)(1) Section 8(b)'of the Federal Deposit Insurance 
Act (12 U.S.C. 1818(b)) is amended to read as follows: 
"(b)(1) If, in the opinion of the appropriate Federal banking Notice of charges, 
agency, any insured bank, bank which has insured deposits, or any 
director, officer, employee, agent, or other person paiticipating in the 
92 STAT. 3650 
PUBLIC LAW 95-630—NOV. 10, 1978 
Cease-and-desist 
order. 
conduct of the affairs of such a bank is engaging or has engaged, or 
the agency has reasonable cause to believe that the bank or any 
director, officer, employee, agent, or other person participating in the 
conduct of the affairs of such bank is about to engage, in an unsafe 
or unsound practice in conducting the business of such bank, or is 
violating or has violated, or the agency has reasonable cause to believe 
that the bank or any director, officer, employee, agent, or other person 
participating in the conduct of the affairs of such bank is about to 
violate, a law, rule, or regulation, or any condition imposed in 
writing by the agency in connection with the granting of any 
application or other request by the bank or any written agreement 
entered into with the agency, the agency may issue and serve upon the 
bank or such director, officer, employee, agent, or other person a notice 
Hearing 
of charges in respect thereof. The notice shall contain a statement of the 
facts constituting the alleged violation or violations or the unsafe or 
unsound practice or practices, and shall fix a time and place at which 
a hearing will be held to determine whether an order to cease and 
desist therefrom should issue against the bank or the director, officer, 
employee, agent, or other person participating in the conduct of the 
affairs of such bank. Such hearing shall be fixed for a date not earlier 
than thirty days nor later than sixty days after service of such notice 
unless an earlier or a later date is set by the agency at the request of 
any party so served. Unless the party or parties so served shall appear 
at the hearing personally or by a duly authorized representative, they 
shall be deemed to have consented to the issuance of the cease-and-
desist order. In the event of such consent, or if upon the record made 
at any such hearing, the agency shall find that any violation or unsafe 
or unsound practice specified in the notice of charges has been 
established, the agency may issue and serve upon the bank or the 
director, officer, employee, agent, or other person participating in the 
conduct of the affairs of such bank an order to cease and desist from 
any such violation or practice. Such order may, by provisions which 
may be mandatory or otherwise, require the bank or its directors, 
officers, employees, agents, and other persons participating in the 
conduct of the affairs of such bank to cease and desist from the same, 
and, further, to take affirmative action to correct the conditions 
resulting from any such violation or practice. 
"(2) A cease-and-desist order shall become effective at the expira-
tion of thirty days after the service of such order upon the bank or 
other person concerned (except in the case of a cease-and-desist order 
issued upon consent, which shall become effective at the time specified 
therein), and shall remain effective and enforceable as provided 
therein, except to such extent as it is stayed, modified, terminated, or set 
aside by action of the agency or a reviewing court.". 
(2) Section 407(e) of the National Housing Act (12 U.S.C. 1730(e)) 
is amended to read as follows: 
Notice of charges. 
"(e) (1) If, in the opinion of the Corporation, any insured institu-
tion, institution which has insured accounts or any director, officer, 
employee, agent, or other person participating in the conduct of the 
affairs of such institution is engaging or has engaged, or the Corpora-
tion has reasonable cause to believe that the institution or any director, 
officer, employee, agent, or other person participating in the conduct 
of the affairs of such institution is about to engage, in an unsafe or 
unsound practice in conducting the business of such institution, or is 
violating or has violated, or the Corporation has reasonable cause to 
believe that the institution or any director, officer, employee, agent, or 
other person participating in the conduct of the affairs of such institu-
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3651 
Cease-and-desist 
order. 
tion is about to violate, a law, rule, or regulation, or any condition 
imposed in writing by the Corporation in connection with the granting 
of any application or other request by the institution or any written 
agreement entered into with the Corporation, including any agree-
ment entered into under section 403 of this title, the Corporation may 12 USC 1726. 
issue and serve upon the institution or such director, officer, employee, 
agent, or other person a notice of charges in respect thereof. The notice Hearing, 
shall contain a statement of the facts constituting the alleged violation 
or violations or the unsafe or unsound practice or practices, and shall 
fix a time and place at which a hearing will be held to determine 
whether an order to cease and desist therefrom should issue against the 
institution or the director, officer, employee, agent, or other person 
participating in the conduct of the affairs of such institution. Such 
hearing shall be fixed for a date not earlier than thirty days nor later 
than sixty days after service of such notice unless an earlier or a later 
date is set by the Corporation at the request of any party so served. 
Unless the party or parties so served shall appear at the hearing by a 
duly authorized representative, they shall be deemed to have consented 
to the issuance of the cease-and-desist order. In the event of such con-
sent, or if upon the record made at any such hearing, the Corporation 
shall find that any violation or unsafe or unsound practice specified in 
the notice of charges has been established, the Corporation may issue 
and serve upon the institution or the director, officer, employee, agent, 
or other person participating in the conduct of the affairs of such 
institution an order to cease and desist from any such violation or 
practice. Such order may, by provisions which may be mandatory or 
otherwise, require the institution or directors, officers, employees, 
agents, and other persons participating in the conduct of the affairs 
of such institution to cease and desist from the same, and further 
to take affirmative action to correct the conditions resulting from any 
such violation or practice. 
"(2) A cease-and-desist order shall become effective at the expira-
tion of thirty days after service of such order upon the institution or 
the party or parties so served (except in the case of a cease-and-desist 
order issued upon consent, which shall become effective at the time 
specified therein), and shall remain effective and enforceable except 
to such extent as it is stayed, modified, terminated, or set aside by 
action of the Corporation or a reviewing court. 
"(3^ This subsection and subsections (f), (g), (h), (j), (k), (m) (3), 
(n), (o), (p), and (q) of this section shall apply to any savings and 
loan holding company, and to any subsidiary (other than an insured 
institution) of a savings and loan holding company, as those terms are 
defined in section 408 of this title, and to any affiliate service corpora-
tion of an insured institution in the same manner as they apply to 
insured institutions". 
(3) Section 5(d) (2) of the Home Owners' Loan Ac', as amended 
(12 U.S.C. 1464(d) (2)), is amended to read as follows: 
"(2) (A) If, in the opinion of the Board, any association or any di- Notice of charges, 
rector, officer, employee, agent, or Other person participating in the 
conduct of the affairs of such association is engaging or has engaged, 
or the Board has reasonable cause to believe that the association or any 
director, officer, employee, agent, or other person participating in the 
conduct of the affairs of such association is about to engage, in an 
unsafe or unsound practice in conducting the business of such associa-
tion, or is violating or has violated or the Board has reasonable cause 
to believe that the association or any director, officer, employee, agent, 
92 STAT. 3652 
PUBLIC LAW 95-630—NOV. 10, 1978 
Hearing. 
Cease-and-desist 
order. 
or other pei'son participating in the conduct of the affairs of such asso-
ciation is about to violate, a law, rule, or regulation, or charter, or any 
condition imposed in writing by the Board in connection with the 
granting of any application or other- request by the association or any 
written agreement entered into with the Board, the Board may issue 
and serve upon the association or such director, officer, employee, agent, 
or other person a notice of charges in respect thei'eof. The notice shall 
contain a statement of the facts constituting the alleged violation or 
violations or the unsafe or unsound practice or practices, and shall fix 
a time and place at which a hearing will be held to determine whether 
an order to cease and desist therefrom should issue against the associa-
tion or the director, officer, employee, agent, or other person partici-
pating in the conduct of the affairs of such association. Such hearing 
shall be fixed for a date not earlier than thirty days nor later than sixty 
days after service of such notice miless an earlier or a later date is set 
by the Board at the request of any party so served. Unless the party 
or parties so served shall appear at the hearing by a duly authorized 
representative, they shall be deemed to have consented to the issuance 
of the cease-and-desist order. In the event of such consent, or if upon 
the record made at any such hearing, the Board shall find that any vio-
lation or unsafe or unsound practice specified in the notice of chai-ges 
has been established, the Board may issue and serve upon the associa-
tion or the director, officer, employee, agent, or other person partici-
pating in the conduct of the affairs of such association an order to 
cease and desist from any such violation or i)ractice. Such order may, 
by provisions which may be mandatory or otherwise, require the asso-
ciation or its directors, officers, employees, agents, and other persons 
participating in the conduct of the affairs of such association to cease 
and desist from the same, and, further, to take affirmative action to 
correct the conditions resulting from any such violation or practice. 
''(B) A cease-and-desist order shall become effective at the expira-
tion of thirty days after service of such order upon the association or 
the party or parties so served (except in the case of a cease-and-desist 
order issued upon consent, which shall become effective at the time 
specified therein), and shall remain effective and enforceable, except 
to such extent as it is stayed, modified, terminated, or set aside by 
action of the Board or a reviewing court. 
"(C) This paragraph and paragraphs (3), (4), (5), (7), (8), (9), 
(10), (12) (A) and (B), (13), and (14) of this subsection (d) shall 
apply to any savings and loan holding company or to any subsidiary 
(other than an association) of a savings and loan holding company, 
as those terms are defined in section 408 of the Xational Housing Act 
(12 U.S.C. r730a), as amended, and to any affiliate service corporation 
of an association in the same manner as they apply to an association.". 
^(4) Section 206(e) of the Federal Credit Union Act (12 U.S.C. 
1786(e) (1)) is amended to read as follows: 
Notice of charges. 
"(e) (1) If, in the opinion of the Administrator, any insured credit 
union, credit union which has insured accounts, or any director, officer, 
committee member, employee, agent, or other person participating in 
the conduct of the affairs of such a credit union is engaging or has 
engaged, or the Administrator has reasonable cause to believe that the 
credit union or any director, officer, committee member, employee, 
agent, or other person participating in the conduct of the affairs of 
such credit union is about to engage, in an unsafe or unsound practice 
in conducting the business of such credit union, or is violating or has 
violated, or the Administrator has reasonable cause to believ6 that the 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3653 
credit union or any director, officer, committee member, employee, 
agent, or other person participating in the conduct of the affairs of 
such credit union is about to violate, a law, rule, or regulation, or any 
condition imposed in writing by the Administrator in connection with 
the granting of any application or other request by the credit union 
or any written agreement entered into with the Administrator, the 
Administrator may issue and serve upon the credit union or such direc-
tor, officer, committee member, employee, agent, or other person a 
notice of charges in respect thereof. The notice shall contain a state- Hearing. 
ment of the facts constituting the alleged violation or violations or the 
unsafe or unsound practice or practices, and shall fix a time and place 
at which a hearing will be held to determine whether an order to cease 
and desist therefrom should issue against the credit union or the direc-
tor, officer, committee member, employee, agent, or other person 
participating in the conduct of the affairs of such credit union. Such 
hearing shall be fixed for a date not earlier than thirty days nor later 
than sixty days after service of such notice unless an earlier or a later 
date is set by the Administrator at the request of any party so served. 
Unless the party or parties so served shall appear at the hearing by Cease-and-desist 
a duly authorized representative, they shall be deemed to have con- order, 
sented to the issuance of the cease-and-desist order. In the event of 
such consent, or if upon the record made at any such hearing, the 
Administrator shall find that any violation or unsafe or unsound prac-
tice specified in the notice of charges has been established, the Admin-
istrator may issue and serve upon the credit union or the director, 
officer, committee member, employee, agent, or other person participat-
ing in the conduct of the affairs of such credit union an order to cease 
and desist from any such violation or practice. Such order may, by pro-
visions which may be mandatory or otherwise, require the credit union 
or its directors, officers, committee members, employees, agents, and 
other persons participating in the conduct of the affairs of such credit 
union to cease and desist from the same, and, further, to take affirma-
tive action to correct the conditions resulting from any such violation 
or practice. 
"(2) A cease-and-desist order shall become effective at the expira-
tion of thirty days after the service of such order upon the credit 
union or other person concerned (except in the case of a cease-and-
desist order issued upon consent, which shall become effective at the 
time specified therein), and shall remain effective and enforceable as 
provided therein, except to such extent as it is stayed, modified, ter-
minated, or set aside by action of the Administrator or a reviewing 
court.". 
(b) Section 8(b)(3) of the Federal Deposit Insurance Act (12 
U.S.C. 1818(b) (3)) is amended to read as follows: 
"(3) This subsection and subsections (c) through (f) and (h) 
through (n) of this section shall apply to any bank holding company, 
and to any subsidiary (other than a bank) of a bank holding com-
pany, as those terms are defined in the Bank Holding Company Act 
of 1956, and to any organization organized and operated under section 12 USC 1841 
25A of the Federal Reserve Act or operating under section 25 of the note. 
Federal Reserve Act, in the same manner as they apply to a State 12 USC 
member insured bank. Nothing in this subsection or in subsection (c) ^9^~^o9*' 
of this section shall authorize any Federal banking agency, other than "il-"32. 
the Board of Governors of the Federal Reserve System, to issue a 
notice of charges or cease-and-desist order against a bank holding 
company or any subsidiary thereof (other than a bank or subsidiary 
of that bank).*'. 
92 STAT. 3654 
PUBLIC LAW 95-630—NOV. 10, 1978 
(c)(1) Sections 8(c) (1) and (2) of the Federal Deposit Insurance 
Act (12 U.S.C. 1818(c) (1) and (2)) are amended to read as follows: 
Cease-and-desist 
"(c)(1) Whenever the appropriate Federal banking agency shall 
order. 
determine that the violation or threatened violation or the unsafe or 
unsound practice or practices, specified in the notice of charges served 
upon the bank or any director, officer, employee, agent, or other person 
participating in the conduct of the affairs of such bank pursuant to 
paragraph (1) of subsection (b) of this section, or the continuation 
thereof, is likely to cause insolvency or substantial dissipation of assets 
or earnings of the bank, or is likely to seriously weaken the condition 
of the bank or otherwise seriously prejudice the interests of its depos-
itors prior to the completion of the proceedings conducted pursuant 
to paragraph (1) of subsection (b) of this section, the agency may 
issue a temporai-y order requiring the bank or such director, officer, 
employee, agent, or other person to cease and desist from any such 
violation or practice and to take affirmative action to prevent such 
insolvency, dissipation, condition, or prejudice pending completion of 
such proceedings. Such order shall become effective upon service upon 
the bank or such director, officer, employee, agent, or other person 
participating in the conduct of the affairs of such bank and, unless 
set aside, limited, or suspended by a court in proceedings author-
ized by paragraph (2) of this subsection, shall remain effective and 
enforceable pending the completion of the administrative proceedings 
pursuant to such notice and until such time as the agency shall dismiss 
the charges specified in such notice, or if a cease-and-desist order is 
issued against the bank or such director, officer, employee, agent, or 
other person, until the effective date of such order. 
"(2) Within ten days after the bank concerned or any director, 
officer, employee, agent, or other person participating in the conduct 
of the affairs of such bank has been served with a temporary cease-
and-desist order, the bank or such director, officer, employee, agent, 
or other person may apply to the United States district court for the 
judicial district in which the home office of the bank is located, or the 
ITnited States District Court for the District of Columbia, for an 
injuction setting aside, limiting, or suspending the enforcement, oper-
ation, or effectiveness of such order pending the completion of the 
administrative proceedings pursuant to the notice of charges served 
upon the bank or such director, officer, employee, agent, or other person 
under paragraph (1) of subsection (b) of this section, and such court 
shall have jurisdiction to issue such injuction.". 
(2) Section 407(f) (1) and (2) of the National Housing Act (12 
U.S.C. 1730(f) (1) and (2)) is amended to read as follows: 
Cease-and-desist 
"(f) (1) Whenever the Corporation shall determine that the viola-
order, 
tion or threatened violation or the unsafe or unsound practice or prac-
tices, specified in the notice of charges served upon the institution or 
any director, officer, employee, agent, or other person participating in 
the conduct of the affairs of such institution or any institution any of 
the accounts of which are insured pursuant to paragraph (1) of sub-
section (e) of this section, or the continuation thereof, is likely to cause 
insolvency or substantial dissipation of assets or earnings of the insti-
tution, or is likely to seriously weaken the condition of the institution 
or otherwise seriously prejudice the interests of its insured members 
prior to the completion of the proceedings conducted pursuant to 
paragraph (1) of subsection (c) of this section, the Corporation may 
issue a temporary order requiring the institution or such director, 
officer, employee, agent, or other person to cease and desist from any 
such violation or practice and to take affirmative action to prevent such 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3655 
insolvency, dissipation, condition or prejudice pending- completion of 
such proceedings. Such order shall become effective upon service upon 
the institution and/or such dir-ector, officer, employee, agent, or other 
person participating in the conduct of tiie affairs of such institution 
and, unless set aside, limited, or suspended by a court in proceedings 
authorized by paragraph (2) of this subsection, shall remain effective 
and enfoi-ceable pending the completion of the administrative proceed-
ings pursuant to such notice and until such time as the Corporation 
shall dismiss tlie charges specified in such notice, or if a cease-and-desist 
oi-der is issued against the institution or such director, officer, employee, 
agent, or other person, until the effective date of any such order. 
" (2) Within ten days after the institution concerned or any director. Injunction, 
officer, employee, agent, or other |5crson participating in the conduct 
of the affairs of such institution has been served with a temporary 
cease-and-desist 
order, the institution 
or such director, 
officer, 
employee, agent, or other jjerson may apply to the United States dis-
trict court for the judicial district in which the principal office of the 
institution is located, or the United States District Court for the Dis-
trict of Columbia, for an injunction setting aside, limiting or suspend-
ing the enforcement, operation, or effectiveness of such order pending 
the completion of the administrative proceedings pursuant to the 
notice of charges served upon the institution or such director, officer, 
employee, agent, or other person under paragraph (1) of subsection 
(e) of this section, and such couil shall have jurisdiction to issue such 
injunction.". 
(3) Section 5(d) (3) (A) and (B) of the Home Owners' Loan Act, 
as amended (12 U.S.C. l-t64(d) (3) (A) and ( B ) ) , is amended to read 
as follows: 
"(3) (A) Whenever the Board shall determine that the violation or 
threatened violation or the unsafe or unsound practice or practices, 
specified in the notice of charges served upon the association or any 
director, officer, employee, agent, or other person participating in the 
conduct of the affairs of such association pur-suant to paragraph (2) 
(A) of this subsection, or the continuation thereof, is likely to cause 
insolvency (as defined in paragraph (6) (A) (i) of this subsection) 
or substantial dissipation of assets or earnings of the association, or is 
likely to seriously weaken the condition of the association or otherwise 
seriously pi-ejudice the interests of its savings account holders prior to 
the completion of the proceedings conducted pursuant to paragraph 
(2) (A) of this subsection the Boai'd may issue a temporary order 
requiring the association or such director, officer, employee, agent, or 
other person to cease and desist from any such violation or practice 
and to take affirmative action to prevent such insolvency, dissipation, 
condition or prejudice pending completion of such proceedings. Such 
order shall become effective upon service upon the association or such 
director, officer, employee, agent, or other person participating in the 
conduct of the affairs of such institution and, unless set aside, limited, 
or suspended by a court in proceedings authorized by subparagraph 
(B) of this paragraph, shall remain effective and enforceable pending 
the completion of the administrative proceedings pursuant to such 
notice and until such time as the Board shall dismiss the charges spe-
cified in such notice, or if a cease-and-desist order is issued against 
the association or such director, officer, employee, agent, or other per-
son, until the effective date of such order. 
"(B) Within ten days after the association concerned or any direc- Injunction 
tor, officer, employee, agent, or other person participating in the con-
duct of the affairs of such association has been served with a temporary 
Cease-and-desist 
order. 
92 STAT. 3656 
PUBLIC LAW 95-630—NOV. 10, 1978 
cease-and-desist order, the association or such director, officer, 
employee, agent, or other person may apply to the United States dis-
trict court for the judicial district in which the home office of the 
association is located, or the United States District Court for the Dis-
trict of Columbia, for an injunction setting aside, limiting, or suspend-
ing the enforcement, operation, or effectiveness of such order pending 
the completion of the administrative proceedings pursuant to the notice 
of charges served upon the bank or such director, officer, employee, 
agent, or other person under paragraph (2) (A) of this subsection, 
and such court shall have jurisdiction to issue such injunction.". 
(4) Sections 206(f) (1) and (2) of the Federal Credit Union Act 
(12 U.S.C. 1786(f) (1) and (2)) are amended to read as follows: 
Cease-and-desist 
"(f)(1) Whenever the Administrator shall determine that the 
order. 
violation or threatened violation or the unsafe or unsound practice or 
practices, specified in the notice of charges served upon the credit 
imion or any director, officer, committee member, employee, agent, or 
other person participating in the conduct of the affairs of such credit 
union pursuant to paragraph (1) of subsection (e) of this section, or 
the continuation thereof, is likely to cause insolvency or substantial 
dissipation of assets or earnings of the credit union, or is likely to 
seriously weaken the condition of the credit union or otherwise seri-
ously prejudice the interests of its insured members prior to the 
completion of the proceedings conducted pursuant to paragraph (1) 
of subsection (e) of this section, the Administrator may issue a tem-
porary order requiring the credit union or such director, officer, com-
mittee member, employee, agents, or other person to cease and desist 
from any such violation or practice and to take affirmative action to 
prevent such insolvency, dissipation, condition, or prejudice pending 
completion of such proceedings. Such order shall become effective upon 
service upon the credit union or such director, officer, committee mem-
ber, employee, agent, or other person participating in the conduct of 
the affairs of such credit union and, unless set aside, limited, or sus-
pended b}' a court in proceedings authorized by paragraph (2) of this 
subsection, shall remain effectiA^e and enforceable pending the comple-
tion of the administrative proceedings pursuant to such notice and 
until such time as the Administration shall dismiss the charges speci-
fied in such notice, or if a cease-and-desist order is issued against the 
credit union or such director, officer, committee member, employee, 
agent, or other person, until the effective date of such order. 
Injunction. 
"(2) Within ten days after the credit union concerned or any 
director, officer, committee member, employee, agent, or other person 
participating in the conduct of the affairs of such credit union has 
been served with a temporary cease-and-desist order, the credit union 
or such director, officer, committee member, employee, agent, or other 
person may apply to the United States district court for the judicial 
district in which the home office of the credit union is located, or the 
United States District Court for the District of Columbia, for an 
injunction setting aside, limiting, or suspending the enforcement, 
operation, or effectiveness of such order pending the completion of 
the administrative proceedings pursuant to the notice of charges served 
upon the credit union or such director, officer, committee member, 
employee, agent, or other person under paragraph (1) of subsection 
(e) of this section, and such court shall have jurisdiction to issue such 
injunction.". 
(d)(1) Section 8(e) of the Federal Deposit Insurance Act, as 
amended (12 U.S.C. 1818(e)), is amended to read as follows: 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3657 
"(e) (1) Whenever, in the opmion of the appropriate Federal bank- Removal from 
ing agency, any director or officer of an insured bank has coinmitted office, notice of 
any violation of law, rule, or regulation or of a cease-and-desist order mtent. 
which has become final, or has engaged or participated in any unsafe 
or unsound practice in connection with the bank, or has committed 
or engaged in any act, omission, or practice which consititutes a breach 
of his fiduciary duty as such director or officei-, and the agency deter-
mines that the bank has suffered or will probably suffer substantial 
financial loss or other damage or that the interests of its depositors 
could be seriously prejudiced by reason of such violation or practice or 
breach of fiduciary duty or that the director or office has received 
financial gain by reason of such violation or practice or breach of 
fiduciary duty, and that such violation or practice or breach of fiduciary 
duty is one involving personal dishonesty on the part of such director 
or officer, or one which demonstrates a willful or continuing disregard 
for the safety or soundness of the bank, the agency may serve upon 
such director or officer a written notice of its intention to remove him 
from office. 
"(2) Whenever, in the opinion of the appropriate Federal banking 
agenc}^ any director or officer of an insured bank, by conduct or prac-
tice with respect to another insured bank or other business institution 
which resulted in substantial financial loss or other damage, has 
evidenced either his personal dishonesty or a willful or continuing dis-
regard for its safety and soundness, and, in addition, has evidenced his 
unfitness to continue as a director or officer and, whenever, in the 
opinion of the appropriate Federal banking agency, any other person 
participating in the conduct of the affairs of an insured bank, by 
conduct or practice with respect to such bank or other insured bank 
or other business institution which resulted in substantial financial 
loss or other damage, has evidenced either his personal dishonesty 
or a willful or continuing disregard for its safety and soundness, 
and, in addition, has evidenced his unfitness to participate in the con-
duct of the affairs of such insured bank, the agency may serve upon 
such director, officer, or other person a written notice of its intention 
to remove him from office or to prohibit his further participation in 
any manner in the conduct of the affairs of the bank. 
"(3) In respect to any director or officer of an insured bank or any 
other person referred to in paragraph (1) or (2) of this subsection, 
the appropriate Federal banking agency may, if it deems it necessary 
for the protection of the bank or the interests of its depositors, by 
written notice to such effect served upon such director, officer, or other 
person, suspend him from office or prohibit him from further partici-
pation in any manner in the conduct of the affairs of the bank. Such 
suspension or prohibition shall become effective upon service of such 
notice and, unless stayed by a court in proceedings authorized by sub-
section (f) of this section, shall remain in effect pending the comple-
tion of the administrative proceedings pursuant to the notice served 
under paragraph (1) or (2) of this subsection and until such time as 
the agency shall dismiss the charges specified in such notice, or, if an 
order of removal or prohibition is issued against the director or officer 
or other person, until the effective date of any such order. Copies of 
any such notice shall also be served upon the bank of which he is 
a director or officer or in the conduct of whose affairs he has 
participated. 
"(4) A notice of intention to remove a director, officer, or other Hearing, 
person from office or to prohibit his participation in the conduct of the 
affairs of an insured bank, shall contain a statement of the facts con-
39-194 O—80—pt. 3 
65 : QL3 
92 STAT. 3658 
PUBLIC LAW 95-630—NOV. 10, 1978 
stituting grounds therefor, and shall fix a time and place at which a 
i 
hearing will be held thereon. Such hearing shall be fixed for a date not 
earlier than thirty days nor later than sixty days after the date of 
service of such notice, unless an earlier or a later date is set by the 
agency at the request of (A) such director or officer or other person, 
and for good cause shown, or (B) the Attorney General of the United 
States. Unless such director, officer, or other person shall appear at the 
hearing in person or by a duly authorized representative, he shall be 
deemed to have consented to the issuance of an order of such removal 
or prohibition. In the event of such consent, or if upon the record 
made at any such hearing the agency shall find that any of the grounds 
specified in such notice have been established, the agency may issue 
such orders of suspension or removal from office, or prohibition from 
participation in the conduct of the affairs of the bank, as it may deem 
appropriate. In any action brought under this section by the Comp-
troller of the Currency in respect to any director, officer or other per-
son with respect to a national banking association or a District bank, 
the findings and conclusions of the Administrative Law Judge shall 
be cei-tified to the Board of Governors of the Federal Reserve System 
for the determination of whether any order shall issue. Any such 
order shall become effective at the expiration of thirty days after serv-
ice upon such bank and the director, officer, or other person concerned 
(except in the case of an order issued upon consent, which shall become 
effective at the time specified therein). Such order shall remain effec-
tive and enforceable except to such extent as it is stayed, modified, 
terminated, or set aside by action of the agency or a reviewing court.". 
(2) Section 407(g) (1) and (2) of the National Housing Act (12 
U.S.C. 1730(g) (1) and (2)) is amended to read as follows: 
Removal from 
"(g) (1) Whenever, in the opinion of the Corporation, any director 
office, notice of 
or officer of an insured institution has committed any violation of law, 
intent. 
rule, or regulation or of a cease-and-desist order which has become 
final, or has engaged or participated in any imsafe or unsound practice 
in connection with the institution or has committed or engaged in any 
act, omission, or practice which constitutes a breach of his fiduciary 
duty as such director or officer, and the Corporation determines that 
the institution has suffered oi will probably suffer substantial financial 
loss or other damage or that the interests of its insured members could 
be seriously prejudiced by reason of such violation or practice or 
breach of fiduciary duty or that the director or officer has received 
financial gain by reason of such violation or practice or breach of 
fiduciary duty, and that such violation or practice or breach of fiduci-
ary duty is one involving personal dishonesty on the part of such 
director or officer, or one which demonstrates a willful or continuing 
disregard for the safety or soundness of the institution, the Corpora-
tion may serve upon such director or officer a written notice of its 
intention to remove him from office or to prohibit his further participa-
tion in any manner in the conduct of the affairs of the institution. 
"(2) Whenever, in the opinion of the Corporation, any director or 
officer of an insured institution, by conduct or practice with respect to 
another insured institution or other business institution which resulted 
in substantial financial loss or other damage, has evidenced either his 
personel dishonesty or a willful or continuing disregard for its safety 
and soundne-s, and, in addition, has evidenced his unfitness to continue 
as a director or officer and, whenever, in the opinion of the Corporation, 
ai iKfih' any other person participating in the conduct of the affairs of an 
insured institution, by conduct or practice with respect to such insti-
tution or other insured institution or other business institution which 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3659 
resulted in substantial financial loss or other damage, has evidenced 
either his personal dishonesty or a willful or continuing disregard for 
its safety and soundness, and in addition, has evidenced his unfitness to 
participate in the conduct of affairs of such insured institution, the 
Corporation may serve upon such director, officer, or other person a 
written notice of its intention to remove him from office or to prohibit 
his further participation in any manner in the conduct of the affairs 
of the institution.". 
(3) Section 5(d) (4) (A) and (B) of the Home Owners' Loan Act, 
as amended (12 U.S.C. 1464(d) (4) (A) and (B)) is amended to read 
as follows: 
"(4) (A) Whenever, in the opinion of the Board, any director or 
officer of an association has committed any violation of law, rule, or 
regulation or of a cease-and-desist order which has become final, or has 
engaged or participated in any unsafe or unsound practice in connec-
tion with the association, or has committed or engaged in any act, 
omission, or practice which constitutes a breach of his fiduciary duty 
as such director or officer, and the Board determines that the associa-
tion has suffered or will probably suffer substantial financial loss or 
other damage or that the interests of its savings account holders could 
be seriously prejudiced by reason of such violation or practice or 
breach of fiduciary duty, or that the director or officer has received 
financial gain by reason of such violation or practice or breach of 
fiduciary duty, and that such violation or practice or breach of fiduci-
ary duty is one involving personal dishonesty on the part of such 
director or officer, or a willful or continuing disregard for the safety 
or soundness of the association, the Board may serve upon such direc-
tor or officer a written notice of its intention to remove him from office 
or to prohibit his further participation in any manner in the conduct 
of the affairs of the association. 
"(B) Whenever, in the opinion of the Board, any director or officer 
of an association, by conduct or practice with respect to another sav-
ings and loan association or other business institution which resulted 
in substantial financial loss or other damage, has evidence either his 
personal dishonesty or a willful or continuing disregard for its safety 
and soundness, and, whenever, in the opinion of the Board, any other 
person participating in the conduct of the affairs of an association, by 
conduct or practice with respect to such association or other savings 
and loan association or other business institution which resulted in 
substantial financial loss or other damage, has evidenced either his 
personal dishonesty or a willful or continuing disregard for its safety 
and soundness, and, in addition, has evidenced his unfitness to par-
ticipate in the conduct of the affairs of such association, the Board may 
serve upon such director, officer, or other person a written notice of 
its intention to remove him from ofiice or to prohibit his further par-
ticipation in any manner in the conduct of the affairs of the 
association.". 
(4) Section 206(g) (3) through (4) of the Federal Credit Union 
Act, as amended (12 U.S.C. 1786(g) (3) through (4)), is amended to 
read as follows: 
"(3) In respect to any director, committee member, or officer of an 
insured credit union or any other person referred to in paragraph (1) 
or (2) of this subsection, the Administrator may, if he deems it neces-
sary for the protection of the credit union or the interests of its mem-
bers, by written notice to such effect served upon such director, 
committee member, officer, or other person, suspend him from office or 
prohibit him irojn further participation in any manner in the conduct 
Removal from 
office, notice of 
intent. 
Suspension from 
office. 
92 STAT. 3660 
PUBLIC LAW 95-630—NOV. 10, 1978 
Hearing. 
Civil penalty. 
Notice. 
"Violates." 
of the affairs of the credit union. Such suspension or prohibition shall 
become effective upon service of such notice and, unless stayed by a 
court in proceedings authorized by paragraph (5) of this subsection, 
shall remain in effect pending the completion of the administrative 
proceedings pursuant to the notice served under paragraph (1) or (2) 
of this subsection and until such time as the Administrator shall dis-
miss the charges specified in such notice, or, if an order of removal and 
prohibition is issued against the director, committee member, or officer 
or other person, until the effective date of any such order. Copies of 
any such notice shall also be served upon the credit union of which 
he is a director, committee member, or officer or in the conduct of 
whose aft'airs he has participated. 
"(4) A notice of intention to remove a director, committee member, 
officer, or other person from office or to prohibit his participation in 
the conduct of the affairs of an insured credit union, shall contain a 
statement of the facts constituting grounds therefor, and shall fix a 
time and place at which a hearing will be held thereon. Such hearing 
shall be nxed for a date not earlier than thirty days nor later than 
sixty days after the date of service of such notice, unless an earlier or 
a later date is set by the Administrator at the request of (A) such 
director, committee member, or officer or other person, and for good 
cause shown, or (B) the Attorney General of the United States. Unless 
such director, committee member, officer, or other person shall appear 
at the hearing in person or by a duly authorized representative, ho 
shall be deemed to have consented to the issuance of an order of such 
removal or prohibition. In the event of such consent, or if upon the 
record made at any such hearing the Administrator shall find that any 
of the grounds specified in such notice have been established, the 
Administrator may issue such orders of suspension or removal from 
office, or prohibition from participation in the conduct of the affairs 
of the credit union, as it ma^ deem appropriate. Any such order shall 
become effective at the expiration of thirty days after service upon 
such credit union and the director, committee member, officer, or other 
person concerned (except in the case of an order issued upon consent, 
which shall become effective at the time specified therein). Such order 
shall remain effective and enforceable except to such extent as it is 
stayed, modified, terminated, or set aside by action of the Administra-
tor or a reviewing court.". 
(e)(1) Section 8(i) of the Federal Deposit Insurance Act, as 
amended (12 U.S.C. 1818(i)), is amended by redesignating section 
8(i) as 8(i) (1) and by adding at the end thereof a new paragraph as 
follows: 
"(2)(i) Any insured bank which violates or any officer, director, 
employee, agent, or other person participating in the conduct of the 
affairs of such a bank who violates the terms of any order which has 
become final and was issued pursuant to subsection (b) or (c) of this 
section, shall forfeit and pay a civil penalty of not more than $1,000 
per day for each day during which such violation continues. The 
penalty shall be assessed and collected by the appropriate Federal 
banking agency by written notice. As used in this section, the term 
'violates' includes without any limitation any action (alone or with 
another or others) for or toward causing, bringing about, participat-
ing in, counseling, or aiding or abetting a violation. 
"(ii) In determining the amount of the penalty the appropriate 
Federal banking agency shall take into account the appropriateness 
of the penalty with respect to the size of financial resources and ^ood 
faith of the insured bank or person charged, the gravity of the viola-
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3661 
tioii, the history of previous violations, and such other matters as 
justice may require. 
"(iii) The insured bank or person assessed shall be afforded an Hearing 
opportunity for agency hearing, upon request made within ten days opportunity, 
after issuance of the notice of assessment. In such hearing all issues 
shall be determined on the record pursuant to section 554 of title 5, 
United States Code, The agency determination shall be made by final 
order which may be reviewed only as provided in subparagraph (iv). 
If no hearing is requested as herein provided, the assessment shall con-
stitute a final and unappealable order. 
"(iv) Any insured bank or person against whom an order imposing Review, 
a civil money penalty has been entered after agency hearing under this 
section may obtain review by the United States court of appeals for 
the circuit in which the home office of the insured bank is located, 
; -^ 
or the United States Court of Appeals for the District of Columbia 
Circuit, by filing a notice of appeal in such court within ten days from 
the date of such order, and simultaneously sending a copy of such 
notice by registered or certified mail to the appropriate Federal bank-
ing agency. The agency shall promptly certify and file in such Court Certification, 
the record upon which the penalty was imposed, as provided in section 
2112 of title 28, United States Code. The findings of the agency shall 
be set aside if found to be unsupported by substantial evidence as pro-
vided by section 706(2) (E) of title 5, United States Code. 
"(v) If any insured bank or person fails to pay an assessment after 
it has become a final and unappealable order, or after the court of 
appeals has entered final judgment in favor of the agency, the agency 
shall refer the matter to the Attorney General, who shall recover the 
amount assessed by action in the appropriate United States district 
court. In such action, the validity and appropriateness of the final 
order imposing the penalty shall not be subject to review. 
"(vi) Each Federal banking agency shall promulgate regulations Regulations, 
establishing procedures necessary to implement this paragraph. 
"(vii) All penalties collected under authority of this section shall 
be covered into the Treasury of the United States.". 
(2) Section 407(k) of the National Housing Act (12 U.S.C. 1730 
(k)) is amended by adding a new paragraph (k) (3) to read as 
follows: 
"(3) (A) Any insured institution or any institution any of the Civil penalty, 
accounts of which are insured which violates or any officer, director, 
employee, agent, or other person participating in the conduct of the 
affairs of such an institution who violates the term of any order which 
has become final and was issued pursuant to subsection (e) or (f) of 
this section shall forefit and pay a civil penalty of not more than 
$1,000 per day for each day during which such violation continues. 
The penalty shall be assessed and collected by the Corporation by writ- Notice, 
ten notice. As used in this section, the term 'violates' includes w'ithout "Violates." 
any limitation any action (alone or with another or others) for or 
toward causing, bringing about, participating in, counseling, or aiding 
or abetting a violation. 
"(B) In determining the amount of the penalty the Corporation 
shall take into account the appropriateness of the penalty with respect 
to the size of financial resources and good faith of the insured institu-
tion or person charged, the gravity of the violation, the history of 
previous violations, and such other matters as justice may require. 
"(C) The insured institution or person assessed shall be afforded an Hearing 
opportunity for agency hearing, upon request made within ten days opportunity, 
after issuance of the notice of assessment. In such hearinir all issues 
92 STAT. 3662 
PUBLIC LAW 95-630—NOV. 10, 1978 
shall be determined on the record pursuant to section 554 of title 5, 
United States Code. The agency determination shall be made by final 
order which may be reviewed only as provided in subparagraph (D). 
If no hearing is requested as herein provided, the assessment shall 
constitute a final and unappealable order. 
Review. 
"(I^) -^^J insured institution or person against whom an order 
imposing a civil money penalty has been entered after agency hearing 
under this section may obtain review by the United States court of 
appeals for the circuit in which the home office of the insured institu-
tion is located, or the United States Court of Appeals for the District' 
.,.»< 
of Columbia Circuit, by filing a notice of appeal in such court within 
ten days from the date of such order, and simultaneously sending a 
copy of such notice by registered or certified mail to the Corporation. 
Certification. 
The Corporation shall promptly certify and file in such court the 
record upon which the penalty was imposed, as provided in section 
2112 of title 28, United States Code. The findings of the agency shall 
be set aside if found to be unsupported by substantial evidence as pro-
vided by section 706(2) (E) of title 5, United States Code. 
. ioHfe di:> 
" ( E ) If any insured institution or person fails to pay an assess-
ment after it has become a final and unappealable order, or after the 
court of appeals has entered final judgment in favor of the agency, 
the Corporation shall refer the matter to the Attorney General, who 
shall recover the amount assessed by action in the appropriate United 
States district court. In such action, the validity and appropriateness 
of the final order imposing the penalty shall not be subject to review. 
Regulations. 
" ( F ) The Corporation shall promulgate regulations establishing 
procedures necessary to implement this paragraph. 
"(G) All penalties collected under authority of this paragraph 
shall be covered into the Treasury of the United States.". 
(3) Section 5(d) (8) of the Home Owners' Loan Act, as amended 
^
f
K
H '; 
(12 U.S.C. 1464(5) (d) (8)), is amended by redesignating section 
5(d)(8) as5(d)(8)(A) and by adding the following new paragraph: 
"(B) (i) Any association which violates or any officer, director, 
employee, agent, or other person participating in the conduct of the 
affairs of such an association who violates the terms of any order 
which has become final and was issued pursuant to paragraph (2) 
or (3) of this subsection, shall forfeit and pay a civil penalty of not 
more than $1,000 per day for each day during which such violation 
continues. The penalty shall be assessed and collected by the Board by 
written notice. As used in this section, the term 'violates' includes 
without any limitation any action (alone or with another or others) 
for or toward causing, bringing about, participating in, counseling, 
or aiding or abetting a violation. 
"(ii) In determining the amount of the penalty the Board shall 
,,., 
take into account the appropriateness of the penalty with respect to 
,ci,,! 
the size of financial resources and good faith of the association bank 
or person charged, the gravity of the violation, the history of previous 
violations, and such other matters as justice may require. 
Hearing 
"(iii) The association or person charged shall be afforded an 
opportunity. 
opportunity for agency hearing, upon request made within ten days 
after issuance of the notice of assessment. In such hearing all issues 
shall be de'^ermined on the record pursuant to section 554 of title 5, 
United States Code. The agency determination shall be made by final 
order which may be reviewed only as provided in subparagraph (iv). 
If no hearing is requested as herein provided, the assessment shall 
.r 
constitute a final and unappealable order. 
Civil penalty. 
Notice. 
"Violates." 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3663 
"(iv) Any association or person against whom an order imposing a Review, 
civil money penalty has been entered after agency hearing under this 
section may obtain review by the United States court of appeals for 
- •
> 
the circuit in which the home office of the association is located, or the 
United States Court of Appeals for the District of Columbia Circuit, 
by filing a notice of appeal in such court within ten days from the date 
of such order, and simultaneously sending a copy of such notice by 
registered or certified mail to the Board. The agency shall promptly Certification, 
certify and file in such court the record upon which the penalty was 
imposed, as provided in section 2112 of title 28, United States Code. 
The findings of the agency shall be set aside if found to be unsupported 
by substantial evidence as provided by section 706(2) (E) of title 5, 
United States Code. 
"(v) If any association or person fails to pay an assessment after 
it has become a final and unappealable order, or after the court of 
appeals has entered final judgment in favor of the agency, the Board 
shall refer the matter to the Attorney General, who shall recover the 
amount assessed by action in the appropriate United States district 
court. In such action, the validity and appropriateness of the final order 
imposing the penalty shall not be subject to review. 
"(vi) The Board shall promulgate regulations establishing proce- Regulations, 
dures necessary to implement this paragraph. 
" (vii) All penalties collected under authority of this paragraph shall 
be covered into the Treasury of the United States.". 
M •! 
(4) Section 206(j) of the Federal Credit Union Act, as amended 
(12 U.S.C. 1786(j)), is amended by redesignating section 206(j) as 
206(j) (1) and by adding a new paragraph as follows: 
"(2) (A) Any insured credit union which violates or any officer, Civil penalty, 
director, committee member, employee, agent, or other person partic-
ipating in the conduct of the affairs of such a credit union who violates 
the terms of any order which has become final and was issued pursuant 
to subsection (e) or (f) of this section, shall forfeit and pay a civil 
penalty of not more than $1,000 per day for each day during which 
such violation continues. The penalty shall be assessed and collected by Notice, 
the Administrator by written notice. As used in this section, the term "Violates." 
'violates' includes without any limitation any action (alone or with 
another or others) for or toward causing, bringing about, participating 
in, counseling, or aiding or abetting a violation. 
"(B) In determining the amount of the penalty, the Administrator 
•
• • • 
shall take into account the appropriateness of the penalty with respect 
to the size of financial resources and good faith of the insured credit 
union or person charged, the gravity of the violation, the history of 
previous violations, and such other matters as justice may require. 
"(C) The insured credit union or person charged shall be afforded 
Hearing 
an opportunity for agency hearing, upon request made within ten opportunity, 
days after issuance of the notice of assessment. I n such hearing all 
issues shall be determined on the record pursuant to section 554 of title 
5, United States Code. The Administrator's determination shall be 
made by final order which may be reviewed only as provided in sub-
paragraph (D). If no hearing is requested as herein provided, the 
assessment shall constitute a final and unappealable order. 
" ( D ) Any insured credit union or person against whom an order Review. 
imposing a civil money penalty has been entered after agency hearing 
under this section may obtain review by the United States court of 
appeals for the circuit in which the home office of the insured credit 
union is located, or the United States Court of Appeals for the Dis- 
.Y-..- •
• 
trict of Columbia Circuit, by filing a notice of appeal in such court 
92 STAT. 3664 
PUBLIC LAW 95-630—NOV. 10, 1978 
within ten days from the date of such order, and simultaneously send-
ing a copy of such notice by registered or certified mail to the Admin-
Certification, 
istrator. The Administrator shall promptly certify and file in such 
court the record upon which the penalty was imposed, as provided in 
section 2112 of title 28, United States Code. The findings of the 
Administrator shall be set aside if found to be unsupported by sub-
stantial evidence as provided by section 706(2) (E) of title 5, United 
''«?•> 
States Code. 
"(E) If any insured credit union or person fails to pay an assess-
ment after it has become a final and unappealable order, or after the 
court of appeals has entered final judgment in favor of the Admin-
istrator, the Administrator shall refer the matter to the Attorney 
General, who shall recover the amount assessed by action in the appro-
priate United States district court. In such action, the validity and 
appropriateness of the final order imposing the penalty shall not be 
subject to review. 
Regulations. 
"(F) The Administrator shall promulgate regulations establishing 
procedures necessary to implement this paragraph. 
"(G) All penalties collected under authority of this paragraph shall 
be covered into the Treasury of the United States.". 
5 
SEC. 108. Section 18(j) of the Federal Deposit Insurance Act, as 
amended (12 U.S.C. 1828 (j)), is amended by redesignating section 
18(j) as "18(j) (1)" and by adding at the end thereof the following: 
Ante, p. 3644. 
"(2) The provisions of section 22(h) of the Federal Reserve Act, 
as amended, relating to limits on loans and extensions of credit by a 
member bank to its executive officers or directors or to any person who 
directly or indirectly owns, controls, or has the power to vote more 
t
* 
than 10 per centum of any class of voting securities of such member 
bank, except in the case of such a bank located in a city, town, or 
village with less than thirty thousand in population, in which case 
such per centiim shall be 18 per centum, or to companies controlled 
by such an executive officer, director, or person, or to political or cam-
paign committees the funds or services of which will benefit such an 
officer, director, or person or which are controlled by such an officer, 
director, or person and relating to board of directors' approval of and 
terms of such loan, shall be applicable to every nonmember insured 
bank in the same manner and to the same extent as if such nonmember 
insured bank were a State member bank. 
" (3) (A) Any nonmember insured bank which violates or any officer, 
director, employee, agent, or other person participating in the conduct 
of the affairs of such nonmember insured bank who violates any pro-
vision of section 23A or 22 (h) of the Federal Reserve Act, as amended, 
or any lawful regulation issued pursuant thereto, shall forfeit and 
pay a civil penalty of not more than $1,000 per day for each day dur-
ing which such violation continues. The penalty shall be assessed and 
collected by the Corporation by written notice. As used in this section, 
the term 'violates' includes without any limitation any action (alone 
or with another or others) for or toward causing, bringing about, par-
ticipating in, counseling, or aiding or abetting a violation. 
"(B) In determining the amount of the penalty the Corporation 
shall take into account the appropriateness of the penalty with respect 
f'-i' 
to the size of financial resources and good faith of the member bank 
or person charged, the gravity of the violation, the history of previous 
violations, and such other matters as justice may require. 
Hearing 
"(C) The nonmember insured bank or person charged shall be 
opportunity. 
afforded an opportunity for agency hearing, upon request made within 
ten days after issuance of the notice of assessment. In such hearing 
Civil penalty. 
12 u s e 371c, 
ante, p. 3644. 
Notice. 
"Violates." 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3665 
Review. 
all issues shall be determined on the record pursuant to section 554 of 
title 5, United States Code. The agency determination shall be made 
by final order which may be reviewed only as provided in subparagraph 
(D). If no hearing is requested as herein provided the assessment 
shall constitute a final and unappealable order. 
"(D) Any nonmember insured bank or person against whom an 
order imposing a civil money penalty has been entered after agency 
hearing under this section may obtain review by the United States 
court of appeals for the circuit in which the home office of the member 
bank is located, or the United States Court of Appeals for the District 
of Cohmibia Circuit, by filing a notice of appeal in such court within 
ten days from the date of such order, and simultaneously sending a 
copy of such notice by registered or certified mail to the Corporation. 
The Corpoi-ation shall promptly certify and file in such court the Certification, 
record upon which the penalty was imposed, as provided in section 2112 
of title 28, United States Code. The findings of the Corporation shall 
be set aside if found to be unsupported by substantial evidence as pro-
vided by section 706(2) (E) of title 5, United States Code. 
"(E) If any nonmember insured bank or person fails to pay an 
assessment after it has become a final and unappealable order, or after 
the court of appeals has entered final judgment in favor of the agency, 
the Corporation shall refer the matter to the Attorney General, who 
shall recover the amount assessed by action in the appropriate United 
States district court. In such action the validity and appropriateness 
of the final order imposing the penalty shall not be subject to review. 
"(F) The Corporation shall promulgate regulations establishing Regulations, 
procedures necessary to implement this paragraph, 
"(G) All penalties collected under the authority of this paragraph 
shall be covered into the Treasury of the United States.". 
SEC. 109. Any amendment made by this title which provides for the 
imposition of civil penalties shall apply only to violations occurring 
or continuing after the date of its enactment. 
SEC. 110. Section 22(g) of the Federal Reserve Act, as amended (12 
U.S.C. 375a), is amended by inserting the figure "$60,000" in lieu of 
the figure "$30,000" in paragraph (2), and by inserting the figure 
"$20,000" in lieu of the figure "$10,000" in paragraph (3); and by 
inserting the figure "$10,000" in lieu of the figure "$5,000" in para-
graph (4). 
SEC. 111. (a) (1) Section 8(g) of the Federal Deposit Insurance Act 
(12 U.S.C. 1818 (g)) is amended to read as follows: 
"(s)(l) Whenever any director or officer of an insured bank, or 
other person participating in the conduct of the affairs of such bank, 
is charged in any information, indictment, or complaint authorized by 
a United States attorney, with the commission of or participation in a 
crime involving dishonesty or breach of trust which is punishable by 
imprisonment for a term exceeding one year under State or Federal 
law, the appropriate Federal banking agency may, if continued serv-
ice or participation by the individual may pose a threat to the interests 
of the bank's depositors or may threaten to impair public confidence 
in the bank, by written notice served upon such director, officer, or 
other person, suspend him from office or prohibit him from further 
participation in any manner in the conduct of the affairs of the bank, 
A copy of such notice shall also be served upon the bank. Such suspen-
sion or prohibition shall remain in effect until such information, indict-
ment, or complaint is finally disposed of or until terminated by the 
agency. In the event that a judgment of conviction with respect to 
such crime is entered against such director, officer, or other person, 
and at such time as such judgment is not subject to further appellate 
12 u s e 93 note. 
Suspension from 
office. 
92 STAT. 3666 
PUBLIC LAW 95-630—NOV. 10, 1978 
.owm S
C
- :>;; 
Notification. 
Rules. 
review, the agency may, if continued service or participation by the 
individual may pose a threat to the interests of the bank's depositors or 
may threaten to impair public confidence in the bank, issue and serve 
upon such director, officer, or other person an order removing him from 
office or prohibiting him from further participation in any manner in 
the conduct of the affairs of the bank except with the consent of the 
appropriate agency. A copy of such order shall also be served upon such 
bank, whereupon such director or officer shall cease to be a director 
or officer of such bank. A finding of not guilty or other disposition of 
the charge shall not preclude the agency from thereafter instituting 
proceedings to remove such director, officer, or other person from office 
or to prohibit further participation in bank affairs, pursuant to para-
graph (1), (2), or (3) of subsection (e) of this section. Any notice of 
suspension or order of removal issued under this paragraph shall 
remain effective and outstanding until the completion of any hearing 
or appeal authorized under paragraph (3) hereof unless terminated 
by the agency. 
"(2) If at any time, because of the suspension of one or more direc-
tors pursuant to this section, there shall be on the board of directors of 
a national bank less than a quorum of directors not so suspended, all 
powers and functions vested in or exercisable by such board shall vest 
in and be exercisable by the director or directors on the board not so 
suspended, until such time as there shall be a quorum of the board of 
directors. In the event all of the directors of a national bank are sus-
pended pursuant to this section, the Comptroller of the Currency 
shall appoint persons to serve temporarily as directors in their place 
and stead pending the termination of such suspensions, or until such 
time as those who have been suspended, cease to be directors of the 
bank and their respective successors take office. 
"(3) Within thirty days from service of any notice of suspension 
or order of removal issued pursuant to paragraph (1) of this subsec-
tion, the director, officer, or other person concerned may request in 
writing an opportunity to appear before the agency to show that the 
continued service to or participation in the conduct of the affairs of the 
bank by such individual does not, or is not likely to, pose a threat to 
the interests of the bank's depositors or threaten to impair public con-
fidence in the bank. Upon receipt of any such request, the appropriate 
Federal banking agency shall fix a time (not more than thirty days 
after receipt of such request, unless extended at the request of the con-
cerned director, officer, or other person) and place at which the direc-
tor, officer, or other person may appear, personally or through Counsel, 
before one or more members of the agency or designated employees of 
the agency to submit written materials (or, at the discretion of the 
agency, oral testimony) and oral argument. Within sixty days of such 
hearing, the agency shall notify the director, officer, or other person 
whether the suspension or prohibition from participation in any man-
ner in the conduct of the affairs of the bank will be continued, ter-
minated, or otherwise modified, or whether the order removing said 
director, officer or other person from office or prohibiting such indi-
vidual from further participation in any manner in the conduct of the 
affairs of the bank will be rescinded or otherwise modified. Such notifi-
cation shall contain a statement of the basis for the agency's decision, if 
adverse to the director, officer or other person. The Federal banking 
agencies are authorized to prescribe such rules as may be necessary to 
effectuate the purposes of this subsection.". 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3667 
Notice of 
suspension from 
office. 
(2) Section 8(h)(1) of the Federal Deposit Insurance Act (12 
U.S.C. 1818(h)(1)) is amended by inserting after "Any hearing 
provided for in this section" the following: "(other than the hearing 
provided for in subsection (g) (3) of this section)". 
(3) Section 8(j) of the Federal Deposit Insurance Act (12 U.S.C. 
1818(j)) is amended by striking out "(e)(5), (e)(7), (e)(8)" and 
insertmg in lieu thereof " (e) (3), (e) (4)". 
(4) Section 8(k) of the Federal Deposit Insurance Act (12 U.S.C. 
1818 (k)) is amended by striking out "paragraph (1) of subsection 
(g)" and inserting in lieu thereof "paragraph (1) or (3) of 
subsection (g)". 
(5) Section 8(n) of the Federal Deposit Insurance Act (12 U.S.C. 
1818 (n)) is amended by adding at the end thereof the following new 
sentence: "Any person who willfully shall fail or refuse to attend and Misdemeanor, 
testify or to answer any lawful inquiry or to produce books, papers, 
correspondence, memoranda, contracts, agreements, or other records, 
if in such person's power so to do, in obedience to the subpoena of 
the appropriate Federal banking agency, shall be guilty of a 
- •; h
^ 
misdemeanor and, upon conviction, shall be subject to a fine of not 
more than $1,000 or to imprisonment for a term of not more than one 
year or both.". 
(b)(1) Section 407(h) of the National Housing Act (12 U.S.C. 
1730 (h)) is amended to read as follows: 
"(h) (1) Whenever any director or officer of an insured institution, 
or other persons participating in the conduct of the affairs of such 
institution, is charged in any information, indictment, or complaint 
authorized by a United States attorney, with the commission of or 
participation in a crime involving dishonesty or breach of trust which 
is punishable by imprisonment for a term exceeding one year under 
State or Federal law, the Corporation may, if continued service or 
participation by the individual may pose a threat to the interests of 
the institution's depositors or may threaten to impair public 
confidence in the institution, by written notice served upon such 
director, officer, or other person suspend him from office or prohibit 
him from further participation in any manner in the conduct of the 
affairs of the institution. A copy of such notice shall also be served 
upon the institution. Such suspension or prohibition shall remain in 
effect until such information, indictment, or complaint is finally 
disposed of or until terminated by the Corporation. In the event that 
a judgment of conviction with respect to such crime is entered against 
such director, officer, or other person, and at such time as such 
judgment is not subject to further appellate review, the Corporation 
may, if continued service or participation by the individual may pose 
a threat to the interests of the institution's depositors or may threaten 
to impair public confidence in the institution, issue and serve upon 
such director, officer, or other person an order removing him from 
office or prohibiting him from further participation in any manner 
in the conduct of the affairs of the institution except with the consent 
of the Corporation. A copy of such order shall also be served upon 
such institution, whereupon such director or officer shall cease to be 
a director or officer of such institution. A finding of not guilty or 
other disposition of the charge shall not preclude the Corporation 
from thereafter instituting proceedings to remove such director, 
officer, or other person from office or to prohibit further participation 
in institution affairs, pursuant to paragraph (1), (2), or (3) of 
subsection (g) of this section. Any notice of suspension or order of 
removal issued under this paragraph shall remain effective and 
Removal from 
office. 
92 STAT. 3668 
PUBLIC LAW 95-630—NOV. 10, 1978 
Notification. 
Rules. 
Suspension from 
office. 
outstanding until the completion of any hearing or appeal authorized 
under paragraph (3) hereof unless terminated by the Corporation. 
"(2) Within thirty days from service of any notice of suspension 
or order of removal issued pursuant to paragraph 
(1) of this 
subsection, the director, officer, or other person concerned may request 
in writing an opportunity to appear before the Corporation to show 
that the continued service to or participation in the conduct of the 
affairs of the institution by such individual does not, or is not likely 
to, pose a threat to the interests of the institution's depositors or 
threaten to impair public confidence in the institution. Upon receipt 
of any such request, the Corporation shall fix a time (not more than 
thirty days after receipt of such request, unless extended at the request 
of the concerned director, officer, or other person) and place at which 
the director, officer, or other person may appear, personally or 
through counsel, before one or more members of the Corporation or 
designated employees of the Corporation to submit written materials 
(or, at the discretion of the agency, oral testimony) 
and oral 
argument. Within sixty days of such hearing, the Corporation shall 
notify the director, officer, or other person whether the suspension or 
prohibition from participation in any manner in the conduct of the 
affairs of the institution will be continued, terminated or otherwise 
modified, or whether the order removing said director, officer, or other 
person from office or prohibiting such individual from 
further 
participation in any manner in the conduct of the affairs of the 
institution will be rescinded or otherwise modified. Such notification 
shall contain a statement, of the basis for the Corporation's decision, 
if adverse to the director, officer, or other person. The Corporation is 
authorized to prescribe such rules as may be necessary to effectuate the 
purposes of this subsection.". 
(2) Section 407(j)(l) 
of such Act (12 U.S.C. I730(j)(l)) 
is 
amended by inserting after "Any hearing provided for in this section" 
the following: "(other than the hearing provided for in subsection 
(h)(2) of this section)". 
(3) Section 407(j)(2) 
of such Act (12 U.S.C. 1730(j)(2)) is 
amended by inserting " ( 1 ) " after "subsection (h)". 
(c)(1) Section 5(d)(5) of the Home Owners' Loan Act of 1933 
(12 U.S.C. 1464(d) (5)) is amended to read as follows: 
"(5) (A) Whenever any director or officer of an association, or 
other person participating in the conduct of the affairs of such 
association, is charged in any information, indictment, or complaint 
authorized by a United States attorney, with the commission of or 
participation in a crime involving dishonesty or breach of trust which 
is punishable by imprisonment for a term exceeding one year under 
State or Federal law, the Board may, if continued service or 
participation by the individual may pose a threat to the interests of 
the association's depositors or may threaten to impair 
public 
confidence in the association, by written notice served upon such 
director, officer, or other person suspend him from office or prohibit 
him from further participation in any manner in the conduct of the 
affairs of the association. A copy of such notice shall also be served 
upon the association. Such suspension or prohibition shall remain in 
effect until such information, indictment, or complaint is 
finally 
disposed of or until terminated by the Board. In the event that a 
judgment of conviction with respect to such crime is entered against 
such director, officer, or other person, and at such time as such 
judgment is not subject to further appellate review, the Board may, 
if continued service or participation by the individual may pose a 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3669 
threat to the interests of the association's depositors or may threaten 
to impair public confidence in the association, issue and serve upon 
such director, officer, or other person an order removing him from 
office or prohibiting him from further participation in any manner 
in the conduct of the affairs of the association except with the consent 
of the Board. A copy of such order shall also be served upon such 
association, whereupon such director or officer shall cease to be a 
director or officer of such association. A finding of not guilty or other 
disposition of the charge shall not preclude the Board from thereafter 
instituting proceedings to remove such director, officer, or other 
person from office or to prohibit further participation in association 
affairs, pursuant to subparagraph (A), (B), or (C) of paragraph 
(4). Any notice of suspension or order of removal issued under this 
subparagraph shall remain effective and outstanding until the 
completion of any hearing or appeal authorized under subparagraph 
(C) hereof unless terminated by the Board. 
"(B) If at any time, because of the suspension of one or more direc-
tors pursuant to this section, there shall be on the board of directors 
of an association less than a quorum of directors not so suspended, 
all powers and functions vested in or exercisable by such board shall 
vest in and be exercisable by the director or directors on the board not 
so suspended, until such time as there shall be a quorum of the board 
of directors. In the event all of the directors of an association are sus-
pended pursuant to this section, the Board shall appoint persons to 
serve temporarily as directors in their place and stead pending the 
• ^ 
termination of such suspensions, or until such time as those who have 
been suspended, cease to be directors of the association and their repec-
tive successors take office. 
"(C) Within thirtj'^ days from service of any notice of suspension 
or order of removal issued pursuant to subparagraph (A), the director, 
officer, or other person concerned may request in writing an opportu-
nity to appear before the Board to show that the continued service to 
or participation in the conduct of the affairs of the association by such 
individual does not, or is not likely to, pose a threat to the interests 
of the association's depositors or threaten to impair public confidence 
in the association. Upon receipt of any such request, the Board shall fix Hearing, 
a time (not more than thirty days after receipt of such request, unless 
extended at the request of the concerned director, officer, or other 
person) and place at which the director, officer, or other person may 
appear, personally or through counsel, before one or more members 
of the agency or desig?iated employees of the Board to submit written 
materials (or, at the discretion of the agency, oral testimony) and oral 
argument. Within sixty days of such hearing, the Board shall notify 
the director, officer, or other person whether the suspension or prohibi-
tion from participation in any manner in the conduct of the affairs of 
the association will be continued, terminated or otherwise modified, or 
whether the order removing said director, officer, or other person from 
office or prohibiting such individual from further participation in any 
manner in the conduct of the affairs of the association will be rescinded 
or otherwise modified. Such notification shall contain a statement of 
the basis for the Board's decision, if adverse to the director, officer, or 
other person. The Board is authorized to prescribe such rules as may 
be necessary to effectuate the purposes of this subsection.". 
(2) Section 5(d) (7) (A) of the Home Owners' Loan Act of 1933 
(12 U.S.C. 1464(d)(7)(A)) is amended by inserting after "Any 
hearing provided for in this subsection (d)" the following: "(other 
than the hearing provided for in paragraph (5) (C) of this section)". 
Notification. 
Rules. 
92 STAT. 3670 
PUBLIC LAW 95-630—NOV. 10, 1978 
Suspension from 
office. 
Removal from 
office. 
^ • I ' E *'• 
(3) Section 5(d) (12) (A) of such Act (12U.S.C. 1464(d) (12) (A)) 
is amended by striking "or 5(A)" and inserting in lieu thereof the 
following: "5(A), or 5(C)". 
(4) Section 5(d) (13) (A) (1) of such Act (12 U.S.C. 1464(d) (13) 
(A) (1)) is amended by inserting after "paragraph (5) (A)" the fol-
lowing: "or (C)". 
(d) (1) Section 206(h) of the Federal Credit Union Act (12 U.S.C. 
1786 (h)) is amended to read as follows: 
"(h)(1) Whenever any director, committee member, or officer of 
an insured credit union, or other person participating in the conduct 
of the affairs of such credit union, is charged in any information, 
indictment, or complaint authorized by a United States attorney, with 
the commission of or participation in a crime involving dishonesty or 
breach of trust which is punishable by imprisonment for a term exceed-
ing one year under State or Federal law, the Administrator may, if 
continued service or participation by the individual may pose a threat 
to the interests of the credit union's members or may threaten to impair 
public confidence in the credit union, by written notice served upon 
such director, committee member, officer, or other person suspend him 
from office or prohibit him from further participation in any manner 
in the conduct of the affairs of the credit union. A copy of such notice 
shall also be served upon the credit union. Such suspension or prohibi-
tion shall remain in effect until such information, indictment, or com-
plaint is finally disposed of or until terminated by the Administrator. 
In the event that a judgment of conviction with respect to such crime 
is entered against such director, committee member, officer, or other 
person, and at such time as such judgment is not subject to further 
appellate review, the Administrator may, if continued service or par-
ticipation by the individual may pose a threat to the interests of the 
credit union's depositors or may threaten to impair public confidence 
in the credit union, issue and serve upon such director, committee mem-
ber, officer, or other person an order removing him from office or pro-
hibiting him from further participation in any manner in the conduct 
of the affairs of the credit union except with the consent of the Admin-
istrator. A copy of such order shall also be served upon such credit 
union, whereupon such director, committee member, or officer shall 
cease to be a director, committee member, or officer of such credit 
union. A finding of not guilty or other disposition of the charge shall 
not preclude the Administrator from thereafter instituting proceed-
ings to remove such director, committee member, officer, or other 
person from office or to prohibit further participation in the affairs 
of the credit union, pursuant to subsection (g) of this section. Any 
notice of suspension or order of removal issued under this paragraph 
shall remain effective and outstanding until the completion of any 
hearing or appeal authorized under paragraph (3) hereof unless ter-
minated by the Administrator. 
"(2) If at any time, because of the suspension of one or more direc-
tors pursuant to this section, there shall be on the board of directors 
of a Federal credit union less than a quorum of directors not so sus-
pended, all powers and functions vested in or exercisable by such board 
shall vest in and be exercisable by the director or directors on the board 
not so suspended, until such time as there shall be a quorum of the 
board of directors. In the event all of the directors of a Federal credit 
union are suspended pursuant to this section, the Administrator shall 
appoint persons to serve temporarily as directors in their place and 
stead pending the termination of such suspensions, or until such time 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3671 
as those who have been suspended cease to be directors of the credit 
union and their respective successors have been elected by the members 
at an annual or special meeting and have taken office. Directors 
appointed temporarily by the Administrator shall, within thirty days 
following their appomtment, call a special meeting for the election 
of new directors, unless during the thirty-day period (A) the regular 
,.,. ,., 
annual meeting is scheduled, or (B) the suspensions giving rise to 
the appointment of temporary directors are terminated. 
"(3) Within thirty days from service of any notice of suspension or 
order of removal issued pursuant to paragraph (1) of this subsection, 
the director, committee member, officer, or other person concerned may 
request in writing an opportunity to appear before the Administrator 
^ 
to show that the continued service to or participation in the conduct 
..j.." -.1 
of the affairs of the credit union by such individual does not, or is 
not likely to, pose a threat to the interests of the credit union's mem-
bers or threaten to impair public confidence in the credit union. Upon Hearing, 
receipt of any such request, the Administrator shall fix a time (not 
^ >;,;;, ,.-; 
more than thirty days after receipt of such request, unless extended 
at the request of the concerned director, committee member, officer, 
or other person) and place at which the director, committee member, 
officer, or other person may appear, personally or through counsel, 
sOfTi ; ' 
before the Administrator or his designee to submit written materials 
(or, at the discretion of the Administrator, oral testimony) and oral 
arg-ument. Within sixty days of such hearing, the Administrator shall Notification, 
notify the director, committee member, officer, or other person whether 
the suspension or prohibition from participation in any manner in the 
conduct of the affairs of the credit union will be continued, terminated 
or otherwise modified, or whether the order removing said direc-
tor, committee member, officer, or other person from office or prohibit-
ing such individual from further participation in any manner in the 
conduct of the affairs of the credit union will be rescinded or otherwise 
modified. Such notification shall contain a statement of the basis for 
the Administrator's decision, if adverse to the director, committee 
member, officer, or other person. The Administrator is authorized to Rules, 
prescribe such rules as may be necessary to effectuate the purposes of 
this subsection.". 
(2) Section 206 (i) (1) of the Federal Credit Union Act (12 U.S.C 
I786(i)(l)) is amended by inserting after "Any hearing provided 
for in this section" the following: "(other than the hearing provided 
for in subsection (h) (3) of this section)". 
(3) Section 206(i) (2) of such Act (12 U.S.C. 1786(i)(2)) is 
amended by inserting " (1)" after "subsection (h)". 
SEC. 112'. Section 4(c) of the Bank Holding Company Act of 1956 
(12 U.S.C. 1843(c)) is amended by striking out "The prohibitions in 
this section shall not apply to any bank holding company which is 
(i) a labor, agricultural, or horticultural organization and which is 
exempt from taxation under section 501 of the Internal Eevenue Code 
of 1954," and inserting in lieu thereof the following: "The prohibitions 26 USC 501. 
in this section shall not apply tb (i) any company that was on Janu-
ary 4,1977, both a bank holding company and a labor, agricultural, or 
horticultural organization exempt from taxation under section 501 of 
the Internal Eevenue Code of 1954, or to any labor, agricultural, or 
horticultural organization to which all or substantially all of the assets 
of such company are hereafter transferred,". 
SEC. 113. The third sentence of the second paragraph of section 16 
of the Federal Reserve Act (12 U.S.C. 412) is amended by striking the 
92 STAT. 3672 
PUBLIC LAW 95-630—NOV. 10, 1978 
Depository 
Institution 
Management 
Interlocks Act. 
Short title. 
12 u s e 3201 
note. 
Definitions. 
12 u s e 3201. 
12 u s e 1841. 
12 u s e 1730a. 
vUti'S^iMGY' 
words "direct obligations of the United States" and inserting in lieu 
thereof the words "any obligations which are direct obligations of, or 
are fully guaranteed as to principal and interest by, the United States 
or any agency thereof". 
TITLE II—INTERLOCKING 
DIRECTOES 
SEC. 201. This title may be cited as the "Depository Institution Man-
agement Interlocks Act". 
SEC. 202. As used in this title— 
(1) the term "depository institution" means a commercial bank, 
a savings bank, a trust company, a savings and loan association, a 
building and loan association, a homestead association, a coopera-
tive bank, an industrial bank, or a credit union; 
(2) the term "depository holding company" means a bank hold-
ing company as defined in section 2(a) of the Bank Holding 
Company Act of 1956, a company which would be a bank holding 
company as defined in section 2(a) of the Bank Holding Company 
Act of 1956 but for the exemption contained in section 2 (a) (5) (F) 
thereof, or a savings and loan holding company as defined in 
section 408(a) (1) (D) of the National Housing Act; 
(3) the characterization of any corporation (including deposi-
tory institutions and depository holding companies), as an 
"affiliate of," or as "affiliated" with any other corporation means 
that— 
(A) one of the corporations is a depository holding com-
pany and the other is a subsidiary thereof, or both corpora-
tions are subsidiaries of the same depository holding 
company, as the term "subsidiary" is defined in either section 
2(d) of the Bank Holding Company Act of 1956 in the case 
of a bank holding company or section 408(a) (1) (H) of the 
National Housing Act m the case of a saving and loan hold-
ing company; or 
(B) more than 50 per centum of the voting stock of one 
corporation is beneficially owned in the aggregate by one or 
more persons who also beneficially own in the aggregate more 
than 50 per centum of the voting stock of the other corpora-
tion; or 
(C) one of the corporations is a trust company all of the 
stock of which, except for directors qualifying shares, was 
'" 
owned by one or more mutual savings banks on the date of 
enactment of this Act, and the other corporation is a mutual 
savings bank; or 
(D) one of the corporations is a bank, insured by the Fed-
eral Deposit Insurance Corporation and chartered under 
State law, the voting securities of which are held by other 
banks, as permitted by State law, and which bank is primarily 
engaged in providing banking services for other banks and 
not the public: Provided^ hoioever, That in no case shall the 
voting securities of such corporation be held by any such 
other bank in excess of 5 per centum of the paid-in capital 
and 5 per centum of the surplus of such other bank; or 
' * 
(E) one of the corporations is a bank, chartered under 
State law and insured by the Federal Deposit Insurance Cor-
poration, the voting securities of which are held only by per-
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3673 
sons who are officers of other banks, as permitted by State law, 
and which bank is primarily engaged in providing banking 
services for other banks and not the public: Provided, how-
ever, That in no case shall the voting securities of such 
corporation be held by such officers of other banks in excess of 
6 per centum of the paid-in capital and 6 per centum of the 
surplus of such a bank. 
(4) the term "management official" means an employee or 
officer with management functions, a director (including an 
advisory or honorary director), a trustee of a business organiza-
tion under the control of trustees, or any person who has a rep-
resentative or nominee serving in any such capacity: Provided, 
That if a corporator, trustee, director, or other officer of a State-
chartered savings bank or cooperative bank is specifically author-
ized under the laws of the State in which said institution is located 
to serve as a trustee, director, or other officer of a State-chartered 
trust company which does not make real estate mortgage loans 
and does not accept savings deposits from natural persons, then, 
for the purposes of this title, such corporator, trustee, director, or 
other officer shall not be deemed to be a management official of 
such trust company: And provided further^ That if a manage-
ment official of a State-cha.rtered trust company which does not 
make real estate mortgage loans and does not accept savings 
deposits from natural persons is specifically authorized under the 
laws of the State in which said institution is located to serve as 
a corporator, trustee, director, or other officer of a State-chartered 
savings bank or cooperative bank, then, for the purposes of this 
title, such management official shall not be deemed to be a manage-
ment official of any such savings bank or cooperative bank; and 
(5) the term "office" used with reference to a depository institu-
tion means either a principal office or a branch. 
SEC. 203. A management official of a depository institution or a 
depository holding company may not serve as a management official 
of any other depository institution or dei)ository holding company not 
affiliated therewith if an office of one of the institutions or any deposi-
tory institution that is an affiliate of such institutions is located within 
either— 
(1) the same standard metropolitan statistical area as defined 
by the Office of Management and Budget, except in the case of 
depository institutions with less than $20,000,000 in assets in which 
case the provision of paragraph (2) shall apply, as that in which 
an office of the other institution or any depository institution that 
is an affiliate of such other institution is located, or 
(2) the same city, town, or village as that in which an office 
of the other institution or any depository institution that is an 
affiliate of such other institution is located, or in any city, town, 
or village contiguous or adjacent thereto. 
SEC. 204. If a depository institution or a depository holding company 
has total assets exceeding $1,000,000,000, a management official of such 
institution or any affiliate thereof may not serve as a management 
official of any other nonaffiliated depository institution or depository 
holding company having total assets exceeding $500,000,000 or as a 
management official of any affiliate of such other institution. 
SEC. 205. The prohibitions contained in sections 203 and 204 shall 
not apply in the case of any one or more of the following or subsidiary 
thereof: 
Service in 
another 
institution, 
prohibition. 
12 use 3202. 
Service in 
another 
institution, 
prohibition. 
12 u s e 3203. 
12 u s e 3204. 
39-194 0 
p t . 3 
QL. 3 
92 STAT. 3674 
PUBLIC LAW 95-630—NOV. 10, 1978 
12 use 
601-604a, 
611-632. 
Ii2 use 3205. 
15 use 19. 
Administration 
and enforcement. 
12 use 3206. 
'Officer" and 
'director." 
.
•
•
^ J 
(1) A depository institution or depository holding company 
which has been placed formally in liquidation, or which is in the 
hands of a receiver, conservator, or other oiiicial exercising a simi-
lar function. 
(2) A corporation operating under section 25 or 25A of the 
Federal Reserve Act. 
(3) A credit union being served by a management official of 
another credit union. 
(4) A depository institution or depository holding company 
which does not do business within any State of the United States, 
the District of Columbia, any territory of the United States, 
Puerto Rico, Guam, American Samoa, or the Virgin Islands 
except as an incident to its activities outside the United States. 
(5) A State-chartered savings and loan guaranty corporation. 
(6) A Federal Home Loan Bank or any other bank organized 
specifically to serve depository institutions. 
SEC. 206. A person whose service in a position as a management 
official began prior to the date of enactment of this title and was not 
immediately prior to the date of enactment of this title in violation of 
section 8 of the Clayton Act is not prohibited by section 203 or section 
204 of this title from continuing to serve in that position for a period 
of ten years after the date of enactment of this title. The appropriate 
Federal banking agency (as set forth in section 209) may provide a 
reasonable period of time for compliance with this title, not exceeding 
fifteen months, after any change in circumstances which makes such 
service prohibited by this title. 
SEC. 207. This title shall be administered and enforced by— 
(1) the Comptroller of the Currency with respect to national 
banks and banks located in the District of Columbia, 
(2) the Board of Governors of the Federal Reserve System with 
respect to State banks which are members of the Federal Reserve 
System, and bank holding companies, 
(3) the Board of Directors of the Federal Deposit Insurance 
Corporation with respect to State banks which are not members 
of the Federal Reserve System but the deposits of which are 
insured by the Federal Deposit Insurance Corporation, 
(4) the Federal Home Loan Bank Board with respect to insti-
tutions the accounts of which are insured by the Federal Savings 
and Loan Insurance Corporation, and savings and loan holding 
companies, 
(5) the National Credit Union Administration with respect to 
credit unions the accounts of which are insured by the National 
Credit Union Administration, and 
(6) Upon referral by the agencies named in the foregoing para-
graphs (1) through (5), the Attorney General shall have the 
authority to enforce compliance by any person with this title. 
SEC. 208. (a) Section 8(e) of the Federal Deposit Insurance Act 
(12 U.S.C. 1818(e)) is amended by adding at the end thereof the fol-
lowing new paragraph: 
"(5) For the purpose of enforcing any law, rule, regulation, or 
cease-and-desist order in connection with an interlocking relationship, 
the term 'officer' as used in this subsection means an employee or officer 
with management functions, and the term 'director' includes an advi-
sory or honorary director, a trustee of a bank under the control of 
trustees, or any person who has a representative or nominee serving 
in any such capacity.". 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3675 
(b) Section 5 (d) of the Homeowners' Loan Act (12 U.S.C. 1464(dj) 
is amended by adding at the end thereof the following new paragraph: 
"(15) For the purpose of enforcing any law, rule, regulation, or 
cease-and-desist order in connection with an interlocking relationship, 
the term 'officer' as used in this subsection means an employee or officer 
with management functions, and the term 'director' includes an advi-
sory or honorary director, a trustee of an association under the con-
trol of trustees, or any person who has a representative or nominee 
serving in any such capacity.". 
(c) Section 407 (q) of the National Housing Act is amended by add-
ing at the end thereof the following: 
"(4) For the purpose of enforcing any law, rule, regulation, or 
cease-and-desist order in connection with an interlocking relationship, 
the term 'officer' as used in this subsection means an employee or officer 
with management functions, and the term 'director' includes an advi-
sory or honorary director, a trustee of an association under the control 
of trustees, or any person who has a representative or nominee serving 
in any such capacity.". 
SEC. 209. Rules and regulations to carry out this title, including rules 
or regulations which permit service by a management official which 
would otherwise be prohibited by section 203 or section 204, may be 
prescribed by— 
(1) the Comptroller of the Currency with respect to national 
banks and banks located in the District of Columbia, 
(2) the Board of Governors of the Federal Reserve System 
with respect to State banks which are members of the Federal 
Reserve System, and bank holding companies, 
(3) the Board of Directors of the Federal Deposit Insurance 
Corporation with respect to State banks which are not members 
of the Federal Reserve System but the deposits of which are 
insured by the Federal Deposit Insurance Corporation, 
(4) the Federal Home Loan Bank Board with respect to institu-
tions the accounts of which are insured by the Federal Savings 
and Loan Insurance Corporation, and savings and loan holding 
companies, and 
(5) the National Credit Union Administration with respect to 
credit unions the accounts of which are insured by the National 
Credit Union Administration. 
.sood.al <>$,'• 
"Officer" and 
"director." 
12 use 1730. 
"Officer" and 
"director." 
Rules and 
regulations. 
12 use 3207. 
TITLE III—FOREIGN BRANCHING 
SEC. 301. (a) Section 3(o) of the Federal Deposit Insurance Act 
(12 U.S.C. 1813 (o)) is amended— 
(1) by inserting "domestic" immediately before "branch" the 
first place it appears; and 
(2) by inserting before the period at the end thereof a semi-
colon and the following: "and the term 'foreign branch' means 
any office or place of business located outside the United States, 
its territories, Puerto Rico, Guam, American Samoa, or the Virgin 
Islands, at which banking operations are conducted". 
(b) Section 18(d) of the Federal Deposit Insurance Act (12 U.S.C. 
1828(d)) is amended— 
(1) by inserting "(1)" after "(d)"; 
(2) by inserting "domestic" between "new" and "branch"; 
(3) by inserting "such" between "any" and "branch"; and 
' 
(4) by adding at the end thereof the following new paragraph: 
"Foreign 
branch." 
92 STAT. 3676 
PUBLIC LAW 95-630—NOV. 10, 1978 
Regulations. 
Regulations. 
Liabilities 
assumption. 
"(2) No State nonmember insured bank shall establish or operate 
any foreign branch, except with the prior written consent of the Cor-
poration and upon such conditions and pursuant to such regulations 
as the Corporation may prescribe from time to time.". 
(c) Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 
1828) is amended by adding at the end thereof the following new 
subsection: 
"(1) When authorized by State law, a State nonmember insured 
bank may, but only with the prior written consent of the Corporation 
and upon such conditions and under such regulations as the Corpora-
tion may prescribe from time to time, acquire and hold, directly or 
indirectly, stock or other evidences of ownership in one or more banks 
or other entities organized under the law of a foreign country or a 
dependency or insular possession of the United States and not engaged, 
directly or indirectly, m any activity in the United States except as, 
in the judgment of the Board of Directors, shall be incidental to the 
international or foreign business of such foreign bank or entity; and, 
notwithstanding the provisions of subsection (j) of this section, such 
State nonmember insured bank may, as to such foreign bank or entity, 
engage in transactions that would otherwise be covered thereby, but 
only in the manner and within the limit prescribed by the Corporation 
by general or specific regulation or ruling.". 
SEC. 302. The sixth sentence of section 7(a)(3) of the Federal 
Deposit Insurance Act (12 U.S.C. 1817(a) (3)) is amended to read as 
follows: "The correctness of said report of conditions shall be attested 
by the signatures of at least two directors or trustees of the reporting 
bank other than the officer making such declaration, with a declara-
tion that the report has been examined by them and to the best of their 
knowledge and belief is true and correct.". 
SEC. 303. Section 8(n) of the Federal Deposit Insurance Act (12 
U.S.C. 1818 (n)) is amended— 
(1) by inserting in the first sentence after "this section," the 
first place it appears therein the following: "or in connection with 
any claim for insured deposits or any examination or investigation 
under section 10(c),"; 
(2) by inserting "examination, or investigation or considering 
the claim for insured deposits," in the first sentence after "pro-
ceeding," the second place it appears therein; 
(3) by striking out "proceedings" at the end of the first sen-
tence thereof and inserting in lieu thereof "proceedings, claims, 
examinations, or investigations"; 
(4) by inserting "such agency or any" after "Any" at the begin-
ning of the third sentence thereof; and 
(5) by striking out "section" and inserting in lieu thereof "sub-
section" in the fourth sentence thereof. 
SEC. 304. Section 8(q) of the Federal Deposit Insurance Act (12 
U.S.C. 1818 (q)) is amended to read as follows: 
"(q) Whenever the liabilities of an insured bank for deposits shall 
have been assumed by another insured bank or banks, whether by way 
of merger, consolidation, or Other statutory assumption, or pursuant 
to contract (1) the insured status of the bank whose liabilities are so 
assumed shall terminate on the date of receipt by the Corporation of 
satisfactory evidence of such assumption; (2) the separate insurance 
of all deposits so assumed shall terminate at the end of six months 
from the date such assumption takes effect or, in the case of any time 
deposit, the earliest maturity date after the six-month period; and (3) 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3677 
the assuming or resulting bank shall give notice of such assumption 
to each of the depositors of the bank whose liabilities are so assumed 
within thirty days after such assumption takes effect. Where the depos-
its of an insured bank are assumed by a newly insured bank, the bank 
whose deposits are assumed shall not be required to pay any assessment 
upon the deposits w^hich have been so assumed after the semiannual 
period in which the assumption takes effect.". 
SEC. 305. (a) Section 10(b) of the Federal Deposit Insurance Act 
(12 U.S.C. 1820(b)) is amended by inserting "or other institution" in 
the first sentence after the words "any State nonmember bank" and by 
striking out the last two sentences of that subsection. 
(b) Section 10 (c) and (d) of the Federal Deposit Insurance Act 
(12 tJ.S.C 1820 (c) and (d)) are amended to read as follows: 
"(c) In connection with examinations of insured banks, State non-
member banks or other institutions making application to become 
insured banks, and affiliates thereof, or wdth other types of investiga-
tions to determine compliance with applicable law and regulations, the 
appropriate Federal banking agency, or its designated representatives, 
are authorized to administer oaths and affirmations, and to examine 
and to take and preserve testimony under oath as to any matter in 
respect to the affairs or ownership of any such bank or institution or 
affiliate thereof, and to exercise such other powers as are set forth in 
section 8 (n) of this Act. 
"(d) For purposes of this section, the term 'affiliate' shall have the 
same meaning as in section 23A of the Federal Reserve Act, except that 
the term 'member bank' in such section 23A and in section 2(b) of the 
Banking Act of 1933 shall be deemed to refer to an insured bank.". 12 USC 221a, 
SEC. 306. Section 18(c) (1) (B) of the Federal Deposit Insurance Act 
(12 U.S.C. 1828(c) (1) (B)) is amended by inserting after the word 
"deposits" the following: "(including liabilities which would be 
'deposits' except for the proviso in section 3(1) (5) of this Act)". 
^^ ^^^ ^^^^ 
SEC. 307. Section 1114 of title 18, United States Code, is amended 
by inserting before "shall be punished" the following: "or any attor-
ney, liquidator, examiner, claim agent, or other employee of the Fed-
eral Deposit Insurance Corporation, the Federal Savings and Loan 
Insurance Corporation, the Comptroller of the Currency, the Federal 
Home Loan Bank Board, the Board of Governors of the Federal 
Reserve System, any Federal Reserve bank, or the National Credit 
Union Administration engaged in or on account of the performance of 
his official duties". 
SEC. 308. Section 5 of the Bank Service Corporation Act (12 U.S.C. 
• ' 
1865) is amended to read as follows: 
"SEC. 5. Whenever any bank which is regularly examined by a Fed-
eral supervisory agency, or any subsidiary or affiliate of such bank 
which IS subject to examination by that agency, causes to be per-
formed, by contract or otherwise, any bank services for itself, whether 
on or off its premises— 
"(1) such performance shall be subject to regulation and exami-
nation by such agency to the same extent as if the services were 
being performed by the bank itself on its own premises, and 
"(2) the bank shall notify such agency of the existence of a Notification. 
,, 
service relationship within 30 days after the making of such serv-
ice contract or the performance of the service, whichever occurs 
first.". 
SEC. 309. The last sentence of section 9 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1819) is amended to read as follows: 
"Affiliate" and 
"member bank." 
12 USC 371c. 
92 STAT. 3678 
PUBLIC LAW 95-630—NOV. 10, 1978 
Rules and 
regulations. 
12 u s e 601 note. 
Foreign bank 
operations. 
12 u s e 3106a. 
,(•! '^i 3HU £1 
Application 
approval. 
. rM'.'^^^'Hi'A 
"Tenth. To prescribe by its Board of Directors such rules and regu-
lations as it may deem necessary to carry out the provisions of this 
Act or of any other law which it has the responsibility of administer-
ing or enforcing (except to the extent that authority to issue such rules 
and regulations has been expressly and exclusively granted to any 
other regulatory agency).". 
SEC. 310. (a) Section 7(a) (4) of the Federal Deposit Insurance Act 
(12 U.S.C. 1817(a) (4)) is amended by adding at the end thereof the 
following new sentence: "Deposits which are accumulated for the pay-
ment of personal loans and are assigned or pledged to assure payment 
of loans at maturity shall not be included in the total deposits in such 
reports, but shall be deducted from the loans for which such deposits 
are assigned or pledged to assure repayment.". 
(b) Section 7(a)(5) of the Federal Deposit Insurance Act (12 
U.S.C. 1817(a) (5)) is amended by striking out "deposits accumulated 
for the payment of personal loans," in the second sentence thereof. 
(c) Section 7(b)(6) of the Federal Deposit Insurance Act (12 
U.S.C. 1817(b) (6)) is amended by striking out subparagraph (B), 
and redesignating subparagraphs (C) and (D) as (B) and (C), 
respectively. 
SEC. 311. Section 9 of the International Banking Act of 1978 (P.L. 
95-369) is amended by inserting "(a)" immediately after "SEC. 9." 
and by inserting at the end thereof the following new subsection: 
"(b) (1) Every branch or agency of a foreign bank and every com-
mercial lending company controlled by one or more foreign banks 
or by one or more forei^ companies that control a foreign bank shall 
conduct its operations m the United States in full compliance with 
provisions of any law of the United States or any State thereof 
which— 
"(A) prohibit discrimination against any individual or 
other person on the basis of the race, color, religion, sex, 
marital status, age, or national origin of (i) such individual 
or other person or (ii) any officer, director, employee, or 
creditor of, or any owner of any interest in, such individual 
or other person; and 
"(B) apply to national banks or State-chartered banks 
doing business in the State in which such branch or agency 
or commercial lending company, as the case may be, is doing 
business. 
"(2) No application for a branch or agency shall be approved by 
the Comptroller or by a State bank supervisory authority, as the case 
may be, unless the entity making the application has agreed to con-
duct all of its operations in the United States in full compliance with 
provisions of any law of the United States or any State thereof 
which— 
"(A) prohibit discrimination against individuals or other 
persons on the basis of the race, color, religion, sex, marital 
status, age, or national origin of (i) such individual or other 
person or (ii) any officer, director, employee, or creditor of, 
or any owner of any interest in, such individual or other 
person; and 
"(B) apply to national banks or State-chartered banks 
doing business in the State in which the entity to be estab-
lished is to do business.". 
• r 
> *•••• 
/ * > i , 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3679 
TITLE IV—AMERICAN ARTS GOLD MEDALLIONS 
SEC. 401. This title may be cited as the "American Arts Gold Me-
dallion Act". 
SEC. 402. The Secretary of the Treasury (hereinafter referred to as 
the "Secretary") shall, during each of the first five calendar years 
beginning after the date of enactment of this title, strike and sell to 
the general public, as provided by this title, gold medallions (herein-
after referred to as "medallions") containing, in the aggregate, not 
less than one million troy ounces of fine gold, and commemorating out-
standing individuals in the American arts. 
SEC. 403. (a) Medallions struck under authority of this title shall 
be minted in two sizes containing, respectively, one troy ounce and 
one-half troy ounce of fine gold. During the first year in which such 
medallions are struck, at least five hundred thousand troy ounces of 
fine gold shall be struck in each size of medallions authorized by this 
subsection. In succeeding yeai-s, the proportion of gold devoted to each 
size of medallions shall be determined by the Secretary on the basis 
of expected demand. 
(b) Medallions struck under authority of this title shall be of such 
fineness that, of one thousand parts by weight, nine hundred shall be 
of fijie gold and one hundred of alloy. Medallions shall not be struck 
from ingots which deviate from the standard of this subsection by 
more than one part per thousand. 
(c) Medallions struck under the authority of this title shall bear 
such designs and inscriptions as the Secretary may approve subject to 
the following— 
(1) during the first calendar year beginning after the date of 
, 
enactment of this title, one ounce medallions shall be struck with 
a picture of Grant Wood on the obverse side and one-half ounce 
medallions shall be struck with a picture of Marian Anderson on 
the obverse side; 
(2) during the second calendar year beginning after the date 
; 
of enactment of this title, one ounce medallions shall be struck 
t' 
with a picture of Mark Twain on the obverse side and one-half 
^ 
ounce medallions shall be struck with a picture of .Willa Gather 
on the obverse side; 
(3) during the third calendar year beginning after the date of 
enactment of this title, one ounce medallions shall be struck with 
a picture of Louis Armstrong on the obverse side and one-half 
ounce medallions shall be struck with a picture of Frank Lloyd 
Wright on the obverse side; 
(4) during the fourth calendar year beginning after the date of 
enactment of this title, one ounce medallions shall be struck with a 
picture of Robert Frost on the obverse side and one-half ounce 
medallions shall be struck with a picture of Alexander Calder on 
the obverse side; and 
(5) during the fifth calendar year beginning after the date of 
enactment of this title, one ounce medallions shall be struck with 
a picture of Helen Hayes on the obverse side and one-half ounce 
medallions shall be struck with a picture of John Steinbeck on 
the obverse side. 
The reverse side of each medallion shall be of different design, shall 
be representative of the artistic achievements of the individual on the 
obverse side, and shall include the inscription "American Arts Com-
memorative Series". 
American Arts 
Gold Medallion 
Act. 
Short title. 
Designs and 
inscriptions. 
92 STAT. 3680 
PUBLIC LAW 95-630—NOV. 10, 1978 
Regulations. 
Contracts. 
Sale. 
Rules and 
regulations. 
Effective date. 
SEC. 404. Dies for use in striking the medallions authorized by this 
title may be executed by the engraver, and the medallions struck by 
the Superintendent of coining department of the mint at Philadelphia, 
under such regulations as the Superintendent, with the approval of 
the Director of the Mint, may prescribe. In order to carry out this title, 
the Secretary may enter into contracts: Provided^ That suitable pre-
cautions are maintained to secure against counterfeiting and against 
unauthorized issuance of medallions struck under authority of this 
title. 
SEG. 405. For purposes of section 485 of title 18 of the United States 
Code, a coin of a denomination of higher than 5 cents shall be deemed 
to include any medallion struck under the authority of this title. 
SEC. 406. (a) Medallions struck under authority of this title shall 
be sold to the general public at a competitive price equal to the free 
market value of the gold contained therein plus the cost of manufac-
ture, including labor, materials, dies, use of machinery, and overhead 
expenses including marketing costs. In order to carry out the purposes 
of this section, the Secretary shall enter into such arrangements with 
the Administrator of General Services (hereinafter referred to as the 
"Administrator") as may be appropriate. 
(b) The Administrator shall make such arrangements for the sale 
of medallions as will encourage broad public participation and will 
not preclude purchases of single pieces. 
(c) The Administrator may, after consultation with the Secretary, 
issue rules and regulations to carry out this section. 
SEC. 407. This title shall take eif 
ect on October 1,1979. 
TITLE V—CREDIT UNION RESTRUCTURING 
SEC. 501. Section 102 of the Federal Credit Union Act (12 U.S.C. 
1752a) is amended to read as follows: 
National Credit 
Union 
Administration. 
Establishment. 
Membership. 
Term. 
Management. 
Rules. 
, 
"CREATION or 
ADMINISTRATION 
"SEC. 102. (a) There is hereby established in the executive branch 
of the Government an independent agency to be known as the National 
Credit Union Administration. The Administration shall be under the 
management of a National Credit Union Administration Board. 
"(b) The Board shall consist of three members, who are broadly 
representative of the public interest, appointed by the President, by 
and with the advice and consent of the Senate. In appointing the mem-
bers of the Board, the President shall designate the Chairman. Not 
more than two members of the Board shall be members of the same 
political party. 
"(c) The term of office of each member of the Board shall be six 
years, except that the terms of the two membere, other than the 
Chairman, initially appointed shall expire one upon the expiration of 
two years after the date of appointment, and the other upon the 
expiration of four years after the date of appointment. Board mem-
bers shall not be appointed to succeed themselves except the initial 
members appointed for less than a six-year term may be reappointed 
for a full six-year term and future members appointed to fill unexpired 
terms may be reappointed for a full six-year term. Any Board member 
may continue to serve as such after the expiration of said member's 
term until a successor has qualified. 
"(d) The management of the Administration shall be vested in the 
Board. The Board shall adopt such rules as it sees fit for the trans-
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3681 
Report to 
President and 
Congress. 
Audit. 
Rules and 
regulations. 
action of its business and shall keep permanent and complete records Quorum 
and minutes of its acts and proceedings. A majority of the Board shall 
constitute a quorum. Not later than April 1 of each calendar year, and 
at such other times as the Congress shall determine, the Board shall 
make a report to the President and to the Congress. Such a report shall 
summarize the operations of the Administration and set forth such 
information as is necessary for the Congress to review the financial 
program approved by the Board. 
"(e) The Chairman of the Board shall be the spokesman for the 
Board and shall represent the Board and the National Credit Union 
Administration in its official relations with other branches of the 
Government. The Chairman shall determine each Board member's area 
of responsibility and shall review such assignments biennially. It shall 
be the Chairman's responsibility to direct the implementation of the 
adopted policies and regulations of the Board. 
"(f) The financial transactions of the Administration shall be sub-
ject to audit on a calendar year basis by the General Accounting Office 
in accordance with the principles and procedures applicable to com-
mercial corporate transactions and under such rules and regulations as 
may be prescribed by the Comptroller General of the United States. 
The audit shall be conducted at the place or places where the accounts 
of the Administration are kept,". 
SEC. 502. (a) Section 101 of the Federal Credit Union Act is 12 USC 1752 
amended— 
(1) by striking out clause (2) and inserting in lieu thereof the 
following: 
"(2) the term 'Chairman' means the Chairman of the National 
Credit Union Administration Board;"; 
(2) by inserting "Administration" after "Union" in clause 
(4). 
.
.
. 
(b) The Federal Credit Union Act is amended by striking out 
"Administrator" each place it appears and inserting m lieu thereof 
"Board", and by striking out the personal pronouns "he", "him", and 
"his" when referring to the Administrator and inserting in lieu thereof 
"it", "them", and "its" as appropriate wherever such words appear 
therein. 
(c) Section 5108(a) of title 5, United States Code, is amended by 
changing the number "3,301" in the first sentence to read "3,310". 
(d) Section 5314 of title 5, United States Code, is amended by add-
ing the following new paragraph: 
"(66y Chairman, National Credit Union Administration 
Board.". 
(e) Section 5315 (93) of title 5, United States Code, is amended by 
striking out "Administrator of the National Credit Union Adminis-
tration" and inserting in lieu thereof "Members, National Credit 
Union Administration Board (2)". 
SEC. 503. (a) Paragraph (4) of section 101 of the Federal Credit 
Union Act (12 U.S.C. 1752) which begins with "The terms 'member 
account'" is redesignated paragraph "(5)" and the succeeding para-
graphs numbered (5) through (8) are redesignated as paragraphs (6) 
through (9), respectively. 
(b) Paragraph (5) of section 101 of the Federal Credit Union Act 
(12 U.S.C. 1752), as redesignated by subsection (a) of this section, 
is amended— 
(1) by striking "(when referring to the account of a member 
of credit union)"; 
92 STAT. 3682 
PUBLIC LAW 95-630—NOV. 10, 1978 
•
;
> .
<
. 
(2) by striking "share, share certificate, or share deposit" each 
time it appears therein and inserting "share or share certificate" 
' H^, ' > 
in lieu thereof; 
'• 
"'••" "-'^ 
(3) by striking "those" and inserting "share or share certificate" 
• -• • -' 
in lieu thereof; and 
(4) by striking all language after "political subdivisions there-
of" and inserting "enumerated in section 207 of this Act: 
Provided, 
That for purposes of insured State credit unions, ref-
erence in this paragraph to 'share' or 'share certificate' accounts 
includes, as determined by the Board, the equivalent of such 
accounts under State law;" in lieu thereof, 
(c) Paragraph (9) of section 101 of the Federal Credit Union Act 
(12 U.S.C. 1752), as redesignated by (a) of this section, is amended 
(1) inserting ", including the trust territories," after "several 
territories"; and 
"Branch." 
(2) adding the following new sentence: "The term 'branch' 
iM.,.«.,v)-i 
also includes a suboffice, operated by a Federal credit union or by 
a credit union authorized by the Department of Defense, located 
on an American military installation in a foreign country or in 
the trust territories of the United States.". 
SEC. 504. (a) Subsection (a) of section 201 of the Federal Credit 
Kc:i .}:•: ' 1
:
1 Union Act (12 U.S.C. 1781) is amended by inserting ", including the 
trust territories," after "several territories". 
(b) Paragraph (b) (7) of such section is amended by inserting 
"except for accounts authorized by State law for State credit unions" 
before the semicolon. 
(c) Such section is further amended by striking all of subsection 
(d) and redesignating subsection (e) as (d). 
SEC. 505. (a) Section 202 of the Federal Credit Union Act (12 U.S.C. 
1782) is amended by strikin^ir out "his" in the fifth sentence of para-
graph (a) (1) and inserting "such officer's" in lieu thereof. 
(b) Subsection (h) (3) of such section is amended to read as follows: 
/'Member 
"(3) The term 'member account' when applied to the premium 
account." 
jjj charge for insurance of accounts shall not include amounts 
received from other federally insured credit unions in excess of 
the insured account limit set forth in section 207(c) (1).". 
SEC. 506. Section 208 of the Federal Credit Union Act (12 U.S.C. 
1788) is amended by striking out "SPECIAL ASSISTANCE TO AVOID LIQUIDA-
TION" and inserting 
"SPECIAL ASSISTANCE FOR FEDERALLY INSURED 
CREDIT UNIONS" in lieu thereof. 
SEC. 507. Section 105 of the Federal Credit Union Act (12 U.S.C. 
1755) is amended to read as follows: 
•tih'y 
'FEES 
Rules. 
"SEC. 105. (a) In accordance with rules prescribed by the Board, 
each Federal credit union shall pay to the Administration an annual 
operating fee which may be composed of one or more charges identified 
as to the function or functions for which assessed. 
"(b) The fee assessed under this section shall be determined accord-
ing to a schedule, or schedules, or other method determined by the 
Board to be appropriate, which gives due consideration to the 
expenses of the Administration in carrying out its responsibilities 
under this Act and to the ability of Federal credit unions to pay the 
fee. The Board shall, among other things, determine the periods for 
which the fee shall be assessed and the date or dates for the payment 
of the fee or increments thereof. 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3683 
"(c) If the annual operating fee is composed of separate charges, 
no supervision charge shall be payable by a Federal credit union, 
and the Board may waive payment of any or all other charges com-
prising the fee, with respect to the year in which its charter is issued, 
or in which final distribution is made in its liquidation or the charter 
is canceled. 
"(d) All operating fees shall be deposited with the Treasurer of the 
United States for the account of the Administration and may be 
expended by the Board to defray the expenses incurred in carrying 
out the provisions of this Act including the examination and supervi-
sion of Federal credit unions.". 
SEC. 508. Section 106 of the Federal Credit Union Act (13 U.S.C. 
1756) is amended to read as follows: 
u 
Effective date. 
12 use 1752 
note. 
REPORTS AND EXAMINATIONS 
"SEC 106. Federal credit unions shall be under the supervision of 
the Board, and shall make financial reports to it as and when it may 
require, but at least annually. Each Federal credit union shall be subject 
to examination by, and for this purpose shall make its books and 
records accessible to, any person designated by the Board.". 
SEC. 509. The amendments made by this title take effect upon the 
effective date of this Act, except that the functions of the Administra-
tor of the National Credit Union Administration under the provisions 
of the Federal Credit Union Act, as in effect on the date preceding the 
date of enactment of this title, shall continue to be performed by him 
in accordance with such provisions until such time as all the members 
of the National Credit Union Administration Board, established under 
the amendments made by this title, take office. All rules, regulations, 
policies, and procedures of the Administrator in effect on the date of 
enactment of this title shall remain in effect until amended, superseded, 
or repealed. 
TITLE VI—CHANGE IN BANK CONTROL ACT 
SEC. 601. This title may be cited as the "Change in Bank Control 
Act of 1978". 
SEC. 602. Subsection (j) of section 7 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1817(j)) is amended to read as follows: 
"(j) (1) No person, acting directly or indirectly or through or in 
concert with one or more other persons, shall acquire control of any 
insured bank through a purchase, assignment, transfer, pledge, or 
ofifs itf 
other disposition of voting stock of such insured bank unless the 
appropriate Federal banking agency has been given sixty days' prior 
written notice of such proposed acquisition and within that time 
period the agency has not issued a notice disapproving the proposed 
acquisition or extending for up to another thirty days the period 
during which such a disapproval may issue. The period for disap-
proval may be further extended only if the agency determines that 
any acquiring party has not furnished all the information required 
under section (j) (6) or that in its judgment any material information 
submitted is substantially inaccurate. An acquisition may be made 
prior to expiration of the disapproval period if the agency issues 
written notice of its intent not to disapprove the action. For purposes "Insured bank.' 
of this subsection (j), the term 'insured bank' shall include any 'bank 
holding company', as that term is defined in section 2 of the Bank 
Holding Company Act, which has control of any such insured bank, 12 USC 1841. 
Change in Bank 
Control Act of 
1978. 
Short title. 
12 USC 1817 
note. 
92 STAT. 3684 
PUBLIC LAW 95-630—NOV. 10, 1978 
Notification. 
Hearing. 
Review. 
Certification. 
'.Ji!sd ii-S'iJ 
..CM 
and the appropriate Federal banking agency in the case of bank 
holding companies shall be the Board of Governors of the Federal 
Reserve System. 
"(2) Upon receiving any notice under this subsection, the appropri-
ate Federal banking agency shall forward a copy thereof to the 
appropriate State bank supervisory agency if the bank the voting 
shares of which are sought to be acquired is a State bank, and shall 
allow thirty days within which the views and recommendations of 
such State bank supervisory agency may be submitted. The appropri-
ate Federal banking agency shall give due consideration to the views 
and recommendations of such Sta+e agency in determining whether 
to disapprove any proposed acquisition. Notwithstanding the pro-
visions of this section (j)(2), if the appropriate Federal banking 
agency determines that it must act immediately upon any notice of 
a proposed acquisition in order to prevent the probable failure of the 
bank involved in the proposed acquisition, such Federal banking 
agency may dispense with the requirements of this subsection (j) (2) 
or, if a copy of the notice is forwarded to the State bank supervisory 
agency, such Federal banking agency may request that the views and 
recommendations of such State bank supervisory agency be submitted 
immediately in any form or by any means acceptable to such Federal 
banking agency. 
"(3) Within three days after its decision to disapprove any pro-
posed acquisition, the appropriate Federal banking agency shall notify 
the acquiring party in writing of the disapproval. Such notice shall 
provide a statement of the basis for the disapproval. 
" (4) Within ten days of receipt of such notice of disapproval, the 
acquiring party may request an agencj^ hearing on the proposed acquisi-
tion. In such hearing all issues shall be determined on the record pur-
suant to section 554 of title 5, United States Code. The length of the 
hearing shall be determined by the appropriate Federal banking 
agency. At the conclusion thereof, the appropriate Federal banking 
agency shall by order approve or disapprove the proposed acquisition 
on thebasis of the record made at such hearing. 
"(5) Any person whose proposed acquisition is disapproved after 
agency hearings under this subsection may obtain review by the United 
States court of appeals for the circuit in which the home office of the 
bank to be acquired is located, or the United States Court of Appeals 
for the District of Columbia Circuit, by filing a notice of appeal in 
such court within ten days from the date of such order, and simultane-
ously sendinga copy of such notice by registered or certified mail to the 
appropriate Federal banking agency. The appropriate Federal bank-
ing agency shall promptly certify and file in such court the record upon 
which the disapproval was based. The findings of the appropriate 
Federal banking agency shall be set aside if found to be arbitrary or 
capricious or if found to violate procedures established by this 
subsection. 
" (6) Except as otherwise provided by regulation of the appropriate 
Federal banking agency, a notice filed pursuant to this subsection shall 
contain the following information: 
"(A) The identity, personal history, business background and 
experience of each person by whom or on whose behalf ^he acquisi-
tion is to be made, including his material business activities and 
affiliations during the past five years, and a description of any 
material pending legal or administrative proceedings in which 
he is a party and any criminal indictment or conviction of such 
person by a State or Federal court. 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3685 
i 
"(B) A statement of the assets and liabilities of each person 
by whom or on whose behalf the acquisition is to be made, as 
of the end of the fiscal year for each of the five fiscal years immedi-
ately preceding the date of the notice, together with related state-
ments of income and source and application of funds for each of 
the fiscal years then concluded, all prepared in accordance with 
generally accepted accounting principles consistently applied, and 
"-•«'• :-*' 
an interim statement of the assets and liabilities for each such 
person, together with related statements of income and source 
and application of funds, as of a date not more than ninety days 
prior to the date of the filing of the notice. 
• 
"(C) The terms and conditions of the proposed acquisition 
£ 
and the manner in which the acquisition is to be made. 
"(D) The identity, source and amount of the funds or other 
consideration used or to be used in making the acquisition, and if 
any part of these funds or other consideration has been or is to be 
borrowed or otherwise obtained for the purpose of making the 
acquisition, a description of the transaction, the names of the 
parties, and any arrangements, agreements, or understandings 
with such persons. 
"(E) Any plans or proposals which any acquiring party mak-
ing the acquisition may have to liquidate the bank, to sell its 
assets or merge it with any company or to make any other major 
change in its business or corporate structure or management. 
"(F) The identification of any person employed, retained, or 
to be compensated by the acquiring party, or by any person on 
his behalf, to make solicitations or recommendations to stock-
holders for the purpose of assisting in the acquisition, and a brief 
description of the terms of such employment, retainer, or arrange-
ment for compensation. 
"(G) Copies of all invitations or tenders or advertisements 
making a tender offer to stockholders for purchase of their stock 
to be used in connection with the proposed acquisition. 
" (H) Any additional relevant information in such form as the 
appropriate Federal banking agency may require by regulation or 
by specific request in connection with any particular notice. 
" (7) The appropriate Federal banking agency may disapprove any 
proposed acquisition if— 
^•'"- ^ " 
"(A) the proposed acquisition of control would result in a 
monopoly or would be in furtherance of any combination or 
conspiracy to monoplize or to attempt to monopolize the business 
of banking in any part of the United States; 
"(B) the effect of the proposed acquisition of control in any 
section of the country may be substantially to lessen competition 
or to tend to create a monopoly or the proposed acquisition of con-
trol would in any other manner be in restraint of trade, and the 
anticompetitive effects of the proposed acquisition of control are 
. *' "
f " 
not clearly outweighed in the public interest by the probable 
effect of the transaction in meeting the convenience and needs of 
the community to be served ; 
"(C) the financial condition of any acquiring person is such 
.. '' 
as might jeopardize the financial stability of the bank or prej-
udice the interests of the depositors of the bank; 
"(D) the competence, experience, or integrity of any acquiring 
person or of any of the proposed management personnel indicates 
that it would not be in the interest of the depositors of the bank, 
92 STAT. 3686 
PUBLIC LAW 95-630—NOV. 10, 1978 
'Person. 
'Control.' 
Rules and 
regulations. 
Report to 
Congress. 
Civil penalty. 
Notice. 
or in the interest of the public to permit such person to control 
the bank; or 
"(E) any acquiring person neglects, fails, or refuses to furnish 
the appropriate Federal banking agency all the information 
required by the appropriate Federal banking agency. 
" (8) For the purposes of this subsection, the term— 
"(A) 'person' means an individual or a corporation, partner-
ship, trust, association, joint venture, pool, syndicate, sole pro-
prietorship, unincorporated organization, or any other form of 
entity not specifically listed herein; and 
"(B) 'control' means the power, directly or indirectly, to direct 
ioi the management or policies of an insured bank or to vote 25 per 
centum or more of any class of voting securities of an insured 
bank. 
"(9) Whenever any insured bank makes a loan or loans, secured, 
or to be secured, by 25 per centum or more of the outstanding voting 
stock of an insured bank, the president or other chief executive officer 
of the lending bank shall promptly report such fact to the appropriate 
Federal banking agency of the bank whose stock secures the loan or 
loans upon obtaining knowledge of such loan or loans, except that no 
report need be made in those cases where the borrower has been the 
owner of record of the stock for a period of one year or more or where 
the stock is that of the newly organized bank prior to its opening. 
"(10) The reports required by paragraph (9) of this subsection 
shall contain such of the information referred to in paragraph (6) of 
this subsection, and such other relevant information, as the appro-
priate Federal banking agency may require by regulation or by specific 
request in connection with any particular report. 
" (11) The Federal banking agency receiving a notice or report filed 
pursuant to paragraph (1) or (9) shall immediately furnish to the 
other Federal banking agencies a copy of such notice or report. 
"(12) Whenever such a change in control occurs, each insured bank 
shall report promptly to the appropriate Federal banking agency 
any changes or replacement of its chief executive officer or of any 
director occurring in the next twelve-month period, including in its 
report a statement of the past and current business and professional 
affiliations of the new chief executive officer or directors. 
"(13) The appropriate Federal banking agencies are authorized to 
issue rules and regulations to carry out this subsection. 
"(14) Within two years after the effective date of the Change in 
Bank Control Act of 1978, and each year thereafter in each appro-
priate Federal banking agency's annual report to the Congress, the 
appropriate Federal banking agency shall report to the Congress the 
results of the administration of this subsection, and make any recom-
mendations as to changes in the law which in the opinion of the appro-
priate Federal banking agency would be desirable. 
"(15) Any person who willfully violates any provision of this sub-
section, or any regulation or order issued by the appropriate Federal 
banking agency pursuant thereto, shall forfeit and pay a civil penalty 
of not more than $10,000 per day for each day during which such 
violation continues. The appropriate Federal banking agency shall 
have authority to assess such a civil penalty, after giving notice and 
an opportunity to the person to submit data, views, and arguments, 
and after giving due consideration to the appropriateness of the 
penalty with respect to the size of financial resources and good faith 
of the person charged, the gravity of the violation, and any data, 
views, and arguments submitted. The agency may collect such civil 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3687 
penalty by agreement with the person or by bringmg an action in the 
appropriate United States district court, except that in any such 
action, the person against whom the penalty has been assessed shall 
have a right to trial de novo. 
"(16) This subsection shall not apply to a transaction subject to 
section 3 of the Bank Holding Company Act of 1956 (12 U.S.C. 1842) 
or section 18 of this Act (12 U.S.C. 1828).". 
TITLE VII—CHANGE IN SAVINGS AND LOAN 
CONTKOL ACT 
SEC. 701. This title may be cited as the "Change in Savings and Loan 
Control Act of 1978". 
SEC. 702. Paragraph (6) of section 407(1) of the National Housing 
Act (12 U.S.C. 1730(1) (6)) is amended to read as follows: 
"(6) As used in this subsection, the term 'stock' means rights, inter-
ests, or powers with respect to a mutual institution and the term 
'insured institution' means a mutual insured institution.". 
SEC. 703. Section 407 of the National Housing Act (12 U.S.C. 1730) 
is amended by redesignating section 407(q) as 407(r) and inserting 
immediately after " (p)" the following: 
"(q) (1) No person, acting directly or indirectly or through or in 
concert with one or more other persons, shall acquire control of any 
insured institution through a purchase assignment, transfer, pledge, 
or other disposition of voting stock of such insured institution unless 
the Corporation has been given sixty days' prior written notice of such 
proposed acquisition and within that time period the Corporation has 
not issued a notice disapproving the proposed acquisition or extending 
up to another thirty days the period during which a disapproval may 
issue. The period for disapproval may be further extended only if 
the Corporation determines that any acquiring party has not furnished 
all the information required under subsection (q) (6) or that in its 
judgment any material information submitted is substantially inaccu-
rate. An acquisition may be made prior to expiration of the disap-
proval period if the Corporation issues written notice of its intent not 
to disapprove the action. For purposes of this subsection (q), the 
term 'insured institution' shall include any 'savings and loan holding 
company', as that term is defined in section 408 of the National Hous-
ing Act, which has control of any such insured institution. 
"(2) Upon receiving any notice under this subsection, the Corpora-
tion shall forward a copy thereof to the appropriate State savings and 
loan association supervisory agency if the insured institution the vot-
ing shares of which are sought to be acquired is a State chartered 
institution, and shall allow thirty days within which the views and 
recommendations of such State supervisory agency may be submitted. 
The Corporation shall give due consideration to the views and recom-
mendations of such State agency in determining whether to disapprove 
any proposed acquisition. Notwithstanding the provisions of this sub-
section (q) (2), if the Corporation determines that it must act immedi-
ately upon any notice of a proposed acquisition in order to prevent 
the probable failure of the institution involved in the proposed acquisi-
tion, the Corporation may dispense with the requirement of this sub-
section (1) (2) or, if a copy of the notice is forwarded to the State 
supervisory agency, the Corporation may request that the views and 
recommendations of such State supervisory agency be submitted imme-
diately in any form or by any means acceptable to the Corporation. 
Change in 
Savings and Loan 
Control Act of 
1978. 
Short title. 
12 u s e 1730 
note. 
"Stock" and 
"insured 
institution." 
"Insured 
institution." 
12 u s e 1730a. 
92 STAT. 3688 
PUBLIC LAW 95-630—NOV. 10, 1978 
Notification. 
Hearing. 
Review. 
Certification. 
"(3) Within three days after its decision to disapprove any pro-
posed acquisition, the Corporation shall notify the acquiring party 
in writing of the disapproval. Such notice shall provide a statement 
of the basis for the disapproval. 
"(4) Within ten days of receipt of such notice of disapproval, the 
acquiring party may request an agency hearing on the proposed acqui-
sition. In such hearing all issues shall be determined on the record 
pursuant to section 554 of title 5, United States Code. The length of 
the hearing shall be determined by the Corporation. At the conclusion 
thereof, the Corporation shall by order approve or disapprove the 
proposed acquisition on the basis of the record made at such hearing. 
"(5) Any person whose proposed acquisition is disapproved after 
agency hearing under this subsection may obtain review by the United 
States court of appeals for the circuit in which the home office of the 
institution to be acquired is located, or the United States Court of 
Appeals for the District of Columbia Circuit, by filing a notice of 
appeal in such court within ten days from the date of such order, 
and simultaneously sending a copy of such notice by registered or 
certified mail to the Corporation. The Corporation shall promptly 
certify and file in such court the record upon which the disapproval 
was based. The findings of the Corporation shall be set aside if found 
to be arbitrary or capricious or if found to violate procedures estab-
lished by this subsection. 
"(6) Except as otherwise provided by regulation of the Corpora-
tion, a notice filed pursuant to this subsection shall contain the follow-
ing information: 
"(A) The identity, personal history, business background, and 
experience of each person by whom or on whose behalf the acqui-
sition is to be made, including his material business activities and 
affiliations during the past five years, and a description of any 
material pending legal or administrative proceedings in which he 
is a party and any criminal indictment or conviction of such per-
son by a State or Federal court. 
"(B) A statement of the assets and liabilities of each person 
by whom or on whose behalf the acquisition is to be made, as of the 
end of the fiscal year for each of the five fiscal years immediately 
preceding the date of the notice, together with related statements 
of income and source and application of funds for each of the 
fiscal years then concluded, all prepared in accordance with gen-
erally accepted accounting principles consistently applied, and 
an interim statement of tne assets and liabilities for each such 
d person, together with related statements of income and source and 
application of funds, as of a date not more than ninety days 
prior to the date of the filing of the notice. 
"(C) The terms and conditions of the proposed acquisition and 
the manner in which the acquisition is to be made. 
"(D) The identity, source, and amount of the funds or other 
consideration used or to be used in making the acquisition, and 
if any part of these funds or other consideration has been or is 
to be borrowed, or otherwise obtained for the purpose of making 
the acquisition, a description of the transaction, the names of the 
parties, and any arrangements, agreements, or understandings 
with such persons. 
"(E) Any plans or proposals which any acquiring party mak-
ing the acquisition may have to liquidate the institution, to sell its 
assets or merge it witli any company or to make any other major 
change in its business or corporate structure or management. 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3689 
"(F) The identification of any person employed, retained, or to 
be compensated by the acquiring party, or by any person on his 
behalf, to make solicitations or recommendations to stockholders 
for the purpose of assisting in the acquisition, and a brief descrip-
tion of the terms of such employment, retainer, or arrangement for 
compensation. 
" (G) Copies of all invitations or tenders or advertisements mak-
ing a tender offer to stockholders for purchase of their stock to be 
used in connection with the proposed acquisition. 
"(H) Any additional relevant information in such form as the 
Corporation may require by regulation or by specific request in 
connection with any particular notice. 
" (7) The Corporation may disapjDrove any proposed acquisition if— 
"(A) the proposed acquisition of control would result in a 
monopoly or would be in furtherance of any combination or con-
spiracy to monopolize or to attempt to monopolize the savings and 
loan business in any part of the United States; 
"(B) the effect of the proposed acquisition of control in any 
section of the country may be substantially to lessen competition 
or to tend to create a monopoly or the proposed acquisition of 
control would in any other manner be in restraint of trade, and 
the anticompetitive effects of the proposed acquisition of con-
trol are not clearly outweighed in the public interest by the prob-
able effect of the transaction in meeting the convenience and needs 
of the community to be served; 
"(C) the financial condition of any acquiring person is such as 
might jeopardize the financial stability of the institution or preju-
dice the interests of the depositors of the institution; 
"(D) the competence, experience, or integrity of any acquiring 
person or any of the proposed management personnel indicates 
that it would not be in the interest of the depositors of the insti-
tution or in the interest of the public to permit such person 
to control the institution; or 
"(E) any acquiring person neglects, fails, or refuses to furnish 
the Corporation all the information required by the Corporation. 
"(8) For the purposes of this subsection, the term— 
"(A) 'person' means an individual or a corporation, partner- "Person." 
ship, trust, association, joint venture, pool, syndicate, sole pro-
prietorship, unincorporated organization, or any other form of 
entity not specifically listed herein, and 
"(B) 'control' means the power, directly or indirectly, to direct 
the management or policies of an insured institution or to vote 
25 per centum or more of any class of voting securities of an 
insured institution. 
"(9) Whenever any insured institution or an insured bank makes a 
loan, or loans, secured, or to be secured, by 25 per centum or more of the 
outstanding voting stock of an insured institution, the president or 
other chief executive officer of the lending insured institution or 
insured bank shall promptly report such fact to the Corporation upon 
obtaining knowledge of such loan or loans, except that no report need 
be made in those cases where the borrower has been the owner of record 
of the stock for a period of one year or more or where the stock is that 
of the newly organized institution prior to its opening, 
"(10) The reports required by paragraph (9) of this subsection 
shall contain such of the information referred to in paragraph (6) 
of this subsection, and such other relevant information, as the Cor-
poration may require by regulation or by specific request in connec-
tion with any particular report. 
"Control. 
Report. 
p t . 
3 
QL. 
92 STAT. 3690 
PUBLIC LAW 95-630—NOV. 10, 1978 
Report. 
"Stock.' 
Rules and 
regulations. 
Report to 
Congress. 
Civil penalty. 
"(11) Whenever a change in control occurs, each insured institu-
tion shall report promptly to the Corporation any changes or replace-
ment of its chief executive oJSicer or of any director occurring in the 
next twelve-month period, including in its report a statement of the 
past and current business and professional affiliations of the new chief 
executive officer or directors. 
"(12) Without limitation by or on the foregoing provisions of this 
subsection, the Corporation may require insured institutions and indi-
viduals or other persons who have or have had any connection with 
the management of any insured institution, as defined by thq Cor-
poration, to provide, in such manner as the Corporation may prescribe, 
such periodic or other reports and disclosures, including proxy state-
ments and the solicitation of proxies thereby, as the Corporation may 
determine to be necessary or appropriate for the protection of 
investors or the Corporation. 
"(13) As used in this subsection, the term 'stock' means such stock 
or other equity securities or equity interests in an insured institution 
which is a stock company, or rights, interests, or powers with respect 
thereto. 
"(14) The Corporation is authorized to issue rules and regulations 
to carry out this subsection. 
"(15) Within two years after the effective date of the Change in 
Savings and Loan Control Act of 1978 and each year thereafter in the 
Corporation's annual report to the Congress, the Corporation shall 
report to the Congress the results of the administration of this sub-
section, and make any recommendations as to changes in the law which 
in the opinion of the Corporation would be desirable. 
"(16) Any person who willfully violates any provision of this sub-
section, or any regulation or order issued by the Corporation pursuant 
thereto, shall forfeit and pay a civil penalty of not more than $10,000 
per day for each day during which such violation continues. The Cor-
poration shall have authority to assess such a civil penalty, after giving 
notice and an opportunity to the person to submit data, views, and 
arguments, and after giving due consideration to the appropriateness 
of the penalty with respect to the size of financial resources and good 
faith of the person charged, the gravity of the violation, and any 
data, views, and arguments submitted. The agency may collect such 
civil penalty by agreement with the person or by laringing an action 
in the appropriate United States district court, except that in any such 
action, the person against whom the penalty has been assessed shall 
have a right to trial de novo. 
"(17) This subsection shall not apply to a transaction subject to 
section 408 of this Act (12 U.S.C. 1730a) } \ 
TITLE VIII—CORKESPONDENT ACCOUNTS 
SEC. 801. Section 106(b) of the Bank Holding Company Act 
Amendments of 1970 (12 U.S.C. 1972) is amended by redesignating 
paragraphs (1) through (5) as subparagraphs (A) through (E), 
respectively, by inserting "(1)" immediately after "(b)", and by 
inserting at the end thereof the following new paragi-aph: 
"(2) (A) No bank which maintains a correspondent account in the 
name of another bank shall make an extension of credit to an executive 
officer or director of, or to any person who directly or indirectly or 
acting through or in concert with one or more persons owns, controls, 
or has the power to vote more than 10 per centum of any class of voting 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3691 
securities of, such other bank unless such extension of credit is made 
on substantially the same terms, including interest rates and collateral 
as those prevailing at the time for comparable transactions witli other 
persons and does not involve more than the normal risk of repayment 
or present other unfavorable features. 
"(B) No bank shall open a correspondent account at another bank 
while such bank has outstanding an extension of credit to an executive 
officer or director of, or other person who directly or indirectly or act-
ing through or in concert with one or more persons owns, controls, or 
has the power to vote more than 10 per centum of any class of voting 
securities of, the bank desiring to open the account, unless such exten-
sion of credit was made on substantially the same terms, including 
interest rates and collateral as those prevailing at the time for com-
parable transactions with other persons and does not involve more 
than the normal risk of repayment or present other unfavorable 
features. 
"(C) No bank which maintains a correspondent account at another 
bank shall make an extension of credit to an executive officer or direc-
tor of, or to any person who directly or indirectly acting through or in 
concert with one or more persons owns, controls, or has the power to 
vote more than 10 per centum of any class of voting securities of, such 
other bank, unless such extension of credit is made on substantially the 
same terms, including interest rates and collateral as those prevailing 
at the time for comparable transactions with other persons and does 
not involve more than the normal risk of repayment or present other 
unfavorable features. 
"(D) No bank which has outstanding an extension of credit to an 
executive officer or director of, or to any person who directly or indi-
rectly or acting through or in concert with one or more persons owns, 
controls, or has the power to vote more than 10 per centum of any 
class of voting securities of, another bank shall open a correspondent 
account at such other bank, unless such extension of credit was made 
on substantially the same terms, including interest rates and collateral 
as those prevailing at the time for comparable transactions with other 
persons and does not involve more than the normal risk of repayment 
or present other unfavorable features. 
"(E) For purposes of this paragraph, the term 'extension of 
credit' shall have the same meaning given it in section 23A of the 
Federal Reserve Act and the term 'executive officer' shall have the same 
meaning given it under section 22(g) of the Federal Reserve Act. 
"(F) (i) Any bank which violates or any officer, director, employee, Civil penalty 
agent, or other person participating in the conduct of the affairs of such 
bank who violates any provision of section 106 (b) (2) shall forfeit and 
pay a civil penalty of not more than $1,000 per day for each day during 
which such violation continues. The penalty shall be assessed and col-
lected by the Comptroller of the Currency in the case of a national 
bank, the Board in the case of a State member bank, or the Federal 
Deposit Insurance Corporation in the case of an insured nonmember 
State bank, by written notice. As used in this section, the term 'violates' 
includes without any limitation any action (alone or with another or 
others) for or toward causing, bringing about, participating in, coun-
selling, or aiding or abetting a violation. 
"(ii) In determining the amount of the penalty the Comptroller of 
the Currency, the Board or the Federal Deposit Insurance Corpora-
tion, as the case may be, shall take into account the appropriateness of 
the penalty with respect to the size of the financial resources and good 
"Extension of 
credit" and 
"executive 
officer." 
Notice. 
"Violates.' 
92 STAT. 3692 
PUBLIC LAW 95-630—NOV. 10, 1978 
Hearing 
opportunity. 
Review. 
Certification. 
Regulations. 
Report. 
faith of the bank or person charged, the gravity of the violation, the 
history of previous violations, and such other matters as justice may 
require. 
" (iii) The bank or person assessed shall be afforded an opportunity 
for agencjr hearing, upon request made within ten days after issuance 
of the notice of assessment. In such hearing, all issues shall be deter-
mined on the record pursuant to section 554 of title 5, United States 
Code. The agency determination shall be made by final order which 
may be reviewed only as provided in subsection (iv). If no hearing is 
requested as herein provided, the assessment shall constitute a final 
and unappealable order. 
"(iv) Any bank or person against whom an order imposing a civil 
money penalt;^ has been entered after agency hearing under this sec-
tion may obtain review by the United States court of appeals for the 
circuit in which the home office of the bank is located, or the United 
States Court of Appeals for the District of Columbia Circuit, by filing 
a notice of appeal in such court within ten days from the date of 
such order, and simultaneously sending a copy of such notice by reg-
istered or certified mail to the Comptroller of the Currency, the Board 
or the Federal Deposit Insurance Corporation, as the case may be. 
The Comptroller of the Currency, the Board or the Federal Deposit 
Insurance Corporation, as the case may be, shall promptly certify and 
file in such court the record upon which the penalty was imposed, as 
p,rovided in section 2112 of title 28, United States Code. The findings 
of the Comptroller of the Currency, the Board or the Federal Deposit 
Insurance Corporation, as the case may be, shall be set aside if found 
to be unsupported by substantial evidence as provided by section 
706(2) (E) of title 5, United States Code. 
"(v) If any bank or person fails to pay an assessment after it has 
become a final and unappealable order, or after the court of appeals 
has entered final judgment in favor of the agency, the Comptroller 
of the Currency, the Board or the Federal Deposit Insurance Corpora-
tion, as the case may be, shall refer the matter to the Attorney General, 
who shall recover the amount assessed by action in the appropriate 
United States district court. In such action the validity and apropriate-
ness of the final order imposing the penalty shall not be subject to 
review. 
"(vi) The Comptroller of the Currency, the Board and the Federal 
Deposit Insurance Corporation shall promulgate regulations estab-
lishing procedures necessary to implement this section. 
"(vii) All penalties collected under authority of this section shall 
be covered into the Treasury of the United States. 
"(G) (i) Each executive officer and each stockholder of record who 
directly or indirectly owns, controls, or has the power to vote more 
than 10 per centum of any class of voting securities of an insured bank 
shall make a written report to the board of directors of such bank for 
any year during which such executive officer or shareholder has out-
standing an extension of credit from a bank which maintains a cor-
responding account in the name of such bank. Such report shall 
include the following information: 
"(1) the maximum amount of indebtedness to the bank main-
taining the correspondent account during such year of (a) such 
executive officer or stockholder of record, (b) each company con-
trolled by such executive officer or stockholder, or (c) each polit-
ical or campaign committee the funds or services of which will 
benefit such executive officer or stockholder, or which is controlled 
by such executive officer or stockholder; 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3693 
"(2) the amount of indebtedness to the bank maintaining the 
correspondent account outstanding as of a date not more than ten 
days prior to the date of filing of such report of (a) such executive 
officer or stockholder of record, (b) each company controlled by 
such executive officer or stockholder, or (c) each political or cam-
paign committee the funds or services of which will benefit such 
executive officer or stockholder; 
"(3) the range of interest rates charged on such indebtedness 
of such executive officer or stockholder of record; and 
"(4) the terms and conditions of such indebtedness of such 
executive officer or stockholder of record, 
"(ii) Each insured bank shall compile the reports filed pursuant to Reports 
subparagraph (G) (i) and forward such compilation to the Comp- compilation, 
troller of the Currency in the case of a national bank, the Board in the 
case of a State member bank, and the Federal Deposit Insurance Cor-
poration in the case of an insured nonmember State bank. 
"(iii) Each insured bank shall include in the report required to be 
made under subsection (k) (1) of the Federal Deposit Insurance Act 
(12 U.S.C. 1817(k)(l)) a list by name of each executive officer or 
stockholder of record who directly or indirectly owns, controls, or has 
the power to vote more than 10 per centum of any class of voting 
securities of the bank who files information required by subparagraph 
(G) (i) and the aggregate amount of all extensions of credit by cor-
respondent banks to such executive officers or stockholders of record, 
any company controlled by such executive officers or stockholders, and 
any political or campaign committee the funds or services of which 
will benefit such executive officers or stockholders, or which is con-
trolled by such executive officers or stockholders.". 
TITLE IX—DISCLOSUEE OF MATERIAL FACTS 
SEC. 901. Section 7 of the Federal Deposit Insurance Act (12 U.S.C. 
f 
1817) is amended by adding at the end thereof the following new 
subsection: 
"(k) (1) Each insured bank shall make to the appropriate Federal Annual report 
banking agency an annual report which shall contain the following 
information with respect to the preceding calendar year: 
" (A) A list by name of each stockholder of record who directly 
or indirectly owns, controls, or has the power to vote more than 
10 per centum of any class of voting securities of the bank. 
"(B) A list by name of each executive officer or stockholder of 
record who directly or indirectly owns, controls, or has the power 
to vote more than 10 per centum of any class of voting securities 
of the bank and the aggregate amount of all extensions of credit 
by such bank during such year to: (i) such executive officers or 
stockholders of record, (ii) any company controlled by such exec-
utive officers, or stockholders, or (iii) any political or campaign 
committee the funds or services of which will benefit such execu-
tive officers or stockholders, or which is controlled by such execu-
tive officers or stockholders, 
" (2) For purposes of this subsection, the term 'executive officer' shall 
have the same meaning given it under section 22(g) of the Federal 
Reserve Act. 
"(3) The appropriate Federal banking agencies are authorized to 
issue rules and regulations to carry out this subsection, including 
authority to incorporate the information required to be filed by this 
"Executive 
officer." 
12 u s e 375a. 
Rules and 
regulations. 
92 STAT. 3694 
PUBLIC LAW 95-630—NOV. 10, 1978 
Federal Financial 
Institutions 
Examination 
Council Act of 
1978. 
Short title. 
12 u s e 3301 
note. 
12 u s e 3301. 
subsection in any other report required to be filed by all insured banks 
which would be available in its entirety to the public upon request. 
"(4) Copies of any report required to be filed under this subsection 
shall be made available, by the appropriate Federal banking agency 
or by the bank, upon request, to the public". 
TITLE X—FEDEKAL FINANCIAL INSTITUTIONS 
EXAMINATION COUNCIL 
SEC. 1001. This title may be cited as the "Federal Financial Institu-
tions Examination Council Act of 1978". 
PURPOSE 
SEC. 1002. It is the purpose of this title to establish a Financial Insti-
tutions Examination Council which shall prescribe uniform principles 
and standards for the Federal examination of financial institutions 
by the Office of the Comptroller of the Currency, the Federal Deposit 
Insurance Corporation, the Board of Governors of the Federal Reserve 
System, the Federal Home Loan Bank Board, and the National Credit 
Union Administration and make recommendations to promote uni-
formity in the supervision of these financial institutions. The Council's 
actions shall be designed to promote consistency in such examination 
and to insure progressive and vigilant supervision. 
DEFINITIONS 
12 USC3302. 
SEC. 1003. As used in this title— 
(1) the term "Federal financial institutions regulatory agencies" 
means the Office of the Comptroller of the Currency, the Board 
of Governors of the Federal Reserve System, the Federal Deposit 
Insurance Corporation, the Federal Home Loan Bank Board, and 
the National Credit Union Administration; 
(2) the term "Council" means the Financial Institutions Exami-
nation Council; and 
(3) the term "financial institution" means a commercial bank, 
a savings bank, a trust company, a savings and loan association, 
a building and loan association, a homestead association, a cooper-
ative bank, or a credit union; 
Financial 
Institutions 
Examination 
Council. 
12 u s e 3303. 
Members. 
Term. 
ESTABLISHMENT OF THE COUNCIL 
SEC. 1004. (a) There is established the Financial Institutions Exam-
ination Council which shall consist of— 
(1) the Comptroller of the Currency, 
(2) the Chairman of the Board of Directors of the Federal 
Deposit Insurance Corporation, 
(3) a Governor of the Board of Governors of the Federal 
Reserve System designated by the Chairman of the Board, 
(4) the Chairman of the Federal Home Loan Bank Board, and 
(6) the Chairman of the National Credit Union Administra-
tion Board. 
(b) The members of the Council shall select the first chairman of 
the Council. Thereafter the chairmanship shall rotate among the mem-
bers of the Council. 
(c) The term of the Chairman of the Council shall be two years. 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3695 
(d) The members of the Council may, from time to time, designate 
other officers or employees of their respective agencies to carry out 
their duties on the Council. 
(e) Each member of the Council shall serve without additional 
compensation but shall be entitled to reasonable expenses incurred in 
carrying out his official duties as such a member. 
EXPENSES OF THE COUNCIL 
SEC. 1005. One-fifth of the costs and expenses of the Council, includ-
ing the salaries of its employees, shall be paid by each of the Federal 
financial institutions regulatory agencies. Annual assessments for such 
share shall be levied by the Council based upon its projected budget 
for the year, and additional assessments may be made during the year 
if necessary. 
FUNCTIONS OF THE COUNCIL 
12 use 3304. 
Principles and 
standards. 
12 use 3305. 
SEC. 1006. (a) The Council shall establish uniform principles and 
standards and report forms for the examination of financial institu-
tions which shall be applied by the Federal financial institutions regu-
latory agencies. 
(b) (1) The Council shall make recommendations for uniformity in 
other supervisory matters, such as, but not limited to, classifying loans 
subject to country risk, identifying financial institutions in need of 
special supervisory attention, and evaluating the soundness of large 
loans that are shared by two or more financial institutions. In addi-
tion, the Council shall make recommendations regarding the adequacy 
of supervisory tools for determining the impact of holding company 
operations on the financial institutions within the holding company 
and shall consider the ability of supervisory agencies to discover possi-
ble fraud or questionable and illegal payments and practices which 
might occur in the operation of financial institutions or their holding 
companies. 
(2) When a recommendation of the Council is found unaccepted by 
one or more of the applicable Federal financial institutions regulatory 
agencies, the agency or agencies shall submit to the Council, within a 
time period specified by the Council, a written statement of the reasons 
the recommendation is unacceptable. 
(c) The Council shall develop uniform reporting systems for fed- Reporting 
erally supervised financial institutions, their holding companies, and systems, 
nonfinancial institution subsidiaries of such institutions or holding 
companies. The authority to develop uniform reporting systems shall 
not restrict or amend the requirements of section 12 (i) of the Securities 
Exchang:e Act of 1934. 
(d) The Council shall conduct schools for examiners and assistant 
examiners employed by the Federal financial institutions regulatory 
. .., , 
agencies. Such schools shall be open to enrollment by employees of 
State financial institutions supervisory agencies under conditions spe-
cified by the Council. 
(e) Nothing in this title shall be construed to limit or discourage 
Federal regulatory agency research and development of new financial 
institutions supervisory methods and tools, nor to preclude the field 
testing of any innovation devised by any Federal regulatory agency. 
(f) Not later than April 1 of each year, the Council shall prepare an Annual report, 
annual report covering its activities during the preceding year. 
92 STAT. 3696 
PUBLIC LAW 95-630—NOV. 10, 1978 
Establishment. 
12 use 3306. 
Allowance. 
STATE LIAISON 
'
= 
;^ 
; 
SEC. 1007. To encoura^;e the application of uniform examination 
principles and standards by State and Federal supervisory agencies, 
the Council shall establish a liaison committee composed of five repre-
sentatives of State agencies which supervise financial institutions 
which shall meet at least twice a year with the Council. Members of the 
liaison committee shall receive a reasonable allowance for necessary 
expenses incurred in attending meetings. 
ADMINISTRATION 
12 use 3307. 
SEC. 1008. (a) The Chairman of the Council is authorized to carry 
out and to delegate the authority to carry out the internal administra-
tion of the Council, including the appointment and supervision of 
employees and the distribution of business among members, employees, 
and administrative units. 
(b) in addition to any other authority conferred upon it by this title, 
in carrying out its functions under this title, the Council may utilize, 
with their consent and to the extent practical, the personnel, services, 
and facilities of the Federal financial institutions regulatory agencies, 
Federal Reserve banks, and Federal Home Loan Banks, with or with-
out reimbursement therefor. 
(c) In addition, the Council may— 
(1) subject to the provisions of title 5, United States Code, 
relating to the competitive service, classification, and General 
Schedule pay rates, appoint and fix the compensation of such 
officers and employees as are necessary to carry out the provisions 
of this title, and to prescribe the authority and duties of such 
officers and employees; and 
Experts and 
(2) obtain the services of such experts and consultants as are 
consultants, 
necessary to carry out the provisions of this title. 
services. 
ACCESS TO INFORMATION BY THE COUNCIL 
12 use 3308. 
SEC. 1009. For the purpose of carrying out this title, the Council 
shall have access to all books, accounts, records, reports, files, memo-
randums, papers, things, and property belonging to or in use by Fed-
eral financial institutions regulatory agencies, including reports of 
examination of financial institutions or their holding companies from 
whatever source, together with workpapers and correspondence files 
related to such reports, whether or not a part of the report, and all 
without any deletions. 
AUDITS BY THE COMPTROLLER GENERAL 
31 use 67. 
SEC 1010. Section 117 of the Accounting and Auditing Act of 1950, 
as amended by the Federal Banking Agency Audit Act (Public Law 
95-320), is further amended by: 
(1) redesignating clauses (A), (B), and (C) of subsection 
(e)(1) as (B), (C), and (D), respectively, and inserting in 
subsection (e) (1) the clau^ "(A) of the Financial Institutions 
Examination Council;" immediately following "audits"; and 
(2) striking out in subsection (e) (2) "and (C)" and inserting 
in lieu thereof" (C), and (D)". 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3697 
TITLE XI—RIGHT TO FINANCIAL PEIVACY 
SEC. 1100. This title may be cited as the "Right to Financial Privacy 
Act of 1978". 
DEFINITIONS 
SEC. 1101. For the purpose of this title, the term— 
(1) "financial institution" means any office of a bank, savings 
bank, card issuer as defined in section 103 of the Consumers Credit 
Protection Act (15 U.S.C. 1602 (n)), industrial loan company, 
trust companj^, savings and loan, building and loan, or homestead 
association (including cooperative banks), credit union, or con-
sumer finance institution, located in any State or territory of the 
United States, the District of Columbia, Puerto Rico, Guam, 
American Samoa, or the Virgin Islands; 
(2) "financial record" means an original of, a copy of, or infor-
mation known to have been derived from, any record held by a 
financial institution pertaining to a customer's relationship with 
the financial institution; 
(3) "Government authority" means any agency or department 
of the United States, or any officer, employee, or agent thereof ; 
(4) "person" means an individual or a partnership of five or 
fewer individuals ; 
(5) "customer" means any person or authorized representative 
of that person who utilized or is utilizing any service of a finan-
cial institution, or for whom a financial institution is acting or has 
acted as a fiduciary, in relation to an account maintained in the 
person's name; 
(6) "supervisory agency" means, with respect to any particu-
lar financial institution any of the following which has statutory 
authority to examine the financial condition or business opera-
tions of that institution— 
(A) the Federal Deposit Insurance Corporation; 
(B) the Federal Savings and Loan Insurance Corporation; 
(C) the Federal Home Loan Bank Board; 
(D) the National Credit Union Administration; 
(E) the Board of Governors of the Federal Reserve 
System; 
(F) the Comptroller of the Currency; 
(G) the Securities and Exchange Commission; 
(H) the Secretary of the Treasury, with respect to the 
Bank Secrecy Act and the Currency and Foreign Transac-
tions Reporting Act (Public Law 91-508, title I and I I ) ; or 
(I) any State banking or securities department or agency: 
and 
(7) "law enforcement in(|uir5^" means a lawful investigation 
or official proceeding inquiring into a violation of, or failure to 
comply with, any criminal or civil statute or any regulation, rule, 
or order issued pursuant thereto. 
Right to 
Financial Privacy 
Act of 1978. 
Short title. 
12 use 3401 
note. 
12 use 3401. 
12 use 
1829b-1831, 
1951-1959. 
31 use 1051 
note. 
CONFIDENTIALITY OP RECORDS 
GOVERNMENT AUTHORITIES 
SEC. 1102. Except as provided by section 1103 (c) or (d), 1113, or 12 USe 3402. 
1114, no Government authority may have access to or obtain copies of, 
or the information contained m the financial records of any customer 
92 STAT. 3698 
PUBLIC LAW 95-630—NOV. 10, 1978 
from a financial institution unless the financial records are reasonably 
described and— 
(1) such customer has authorized such disclosure in accordance 
with section 1104; 
(2) such financial records are disclosed in response to an admin-
,, ^^, 
istrative subpena or summons which meets the requirements of 
' 
' 
section 1105; 
(3) such financial records are disclosed in response to a search 
warrant which meets the requirements of section 1106; 
(4) such financial records are disclosed in response to a judicial 
subpena which meets the requirements of section 1107; or 
(5) such financial records are disclosed in response to a formal 
written request which meets the requirements of section 1108. 
CONFIDEXTIALTTY OF RECORDS—FINANCIAL 
INSTITUTIONS 
12 use 3403. 
SEC. 1103. (a) No financial institution, or officer, employees, or agent 
of a financial institution, may provide to any Government authority 
access to or copies of, or the information contained in, the financial 
records of any customer except in accoi-dance with the provisions of 
this title. 
(b) A financial institution shall not release the financial records of 
a customer until the Government authority seeking such records 
certifies in writing to the financial institution that it has complied 
v,'ith the applicable provisions of this title. 
(c) Nothing in this title shall preclude any financial institution, or 
any officer, employee, or agent of a financial institution, from notifying 
a Government authority that such institution, or officer, employee, or 
agent has information which may be relevant to a possible violation of 
any statute or regulation. 
(d) (1) Nothing in this title shall preclude a financial institution, 
as an incident to perfecting a security interest, proving a claim in 
bankruptcy, or otherwise collecting on a debt owing either to the 
financial institution itself or in its role as a fiduciary, from providing 
copies of any financial record to any court or Government authority. 
(2) Nothing in this title shall preclude a financial institution, as 
an incident to processing an application for assistance to a customer 
in the form of a Government loan, loan guaranty, or loan insurance 
agreement, or as an incident to processing a default on, or administer-
ing, a Government guaranteed or insured loan, from initiating 
contact with an appropriate Government authority for the purpose 
of providing any financial record necessary to permit such authority 
to carry out its responsibilities under a loan, loan guaranty, or loan 
insurance agreement. 
CUSTOMER AUTHORIZATIONS 
12 use 3404. 
SEC. 1104. (a) A customer may authorize disclosure under section 
1102(1) if he furnishes to the financial institution and to the Govern-
ment authority seeking to obtain such disclosure a signed and dated 
statement which— 
(1) authorizes such disclosure for a period not in excess of 
three months; 
1
1
1 - ! • J 
(2) states that the customer may revoke such authorization at 
any time before the financial records are disclosed; 
(3) identifies the financial records which are authorized to be 
disclosed; 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3699 
(4) specifies the purposes for which, and the Government 
authority to which, such records may be disclosed; and 
(5) states the customer's rights under this title. 
(b) No such authorization shall be required as a condition of doing 
business with any financial institution. 
(c) The customer has the right, unless the Government authority 
obtains a court order as provided in section 1109, to obtain a copy of 
the record which the financial institution shall keep of all instances 
in which the customer's record is disclosed to a Government authority 
pursuant to this section, including the identity of the Government 
authority to which such disclosure is made. 
(d) All financial institutions shall promptly notify all of their 
customers of their rights under this title. The Board of Governors of 
the Federal Reserve System shall prepare a statement of customers' 
rights under this title. Any financial institution that provides its 
customers a statement of customers' rights prepared by the Board 
shall be deemed to be in compliance with this subsection. 
Notification. 
Statement. 
ADMINISTRATIVE SUBPENA AND SUMMONS 
SEC. 1105. A Government authority may obtain financial records 
under section 1102(2) pursuant to an administrative subpena or 
summons otherwise authorized by law only if— 
(1) there is reason to believe that the records sought are 
relevant to a legitimate law enforcement inquiry; 
(2) a copy of the subpena or summons has been served upon 
the customer or mailed to his last known address on or before the 
date on which the subpena or summons was served on the 
financial institution together with the following notice which 
shall state with reasonable specificity the nature of the law 
enforcement inquiry: 
"Records or information concerning your transactions held by 
the financial institution named in the attached subpena or 
summons are being sought by this (agency or department) in 
accordance with the Right to Financial Privacy Act of 1978 for 
the following purpose; If you desire that such records or 
information not be made available, you must: 
"1. Fill out the accompanying motion paper and sworn 
statement or write one of your own, stating that you are the 
customer whose records are being requested by the Govern-
ment and either giving the reasons you believe that the 
records are not relevant to the legitimate law enforcement 
inquiry stated in this notice or any other legal basis for 
objecting to the release of the records. 
^'2. File the motion and statement by mailing or delivering 
them to the clerk of any one of the following United States 
district courts: 
Financial 
records. 
12 use 3405. 
"3. Serve the Government authority requesting the records 
by mailing or delivering a copy of your motion and 
statement to 
"4. Be prepared to come to court and present your position 
in further detail. 
"5. You do not need to have a lawyer, although you may 
wish to employ one to represent you and protect yotir rights. 
If you do not follow the above procedures, upon the expiration of 
ten days from the date of service or fourteen days from the date 
92 STAT. 3700 
PUBLIC LAW 95-630—NOV. 10, 1978 
of mailing of this notice, the records or information requested 
therein will be made available. These records may be transferred 
to other Government authorities for legitimate law enforcement 
inquiries, in which event you will be notified after the transfer."; 
and 
(3) ten days have expired from the date of service of the notice 
or fourteen days have expired from the date of mailing the notice 
to the customer and within such time period the customer has 
not filed a sworn statement and motion to quash in an appropriate 
court, or the customer challenge provisions of section 1110 have 
been complied with. 
SEARCH WARRANTS 
Financial 
SEC. 1106. (a) A Government authority may obtain financial records 
records. 
under section 1102(3) only if it obtains a search warrant pursuant 
12 use 3406. 
to the Federal Rules of Criminal Procedure. 
18 use app. 
(b) No later than ninetj" days after the Government authority 
serves the search warrant, it shall mail to the customer's last known 
address a copy of the search warrant together with the following 
notice: 
"Records or information concerning your transactions held by the 
financial institution named in the attached search warrant were 
obtained by this (agency or department) on (date) for the following 
purpose: 
. You may have rights under the Right to Financial 
Privacy Act of 1978.". 
(c) Upon application of the Government authority, a court may 
grant a delay in the mailing of the notice required in subsection (b), 
which delay shall not exceed one hundred and eighty days following 
the service of the warrant, if the court makes the findings required in 
section 1109(a). If the court so finds, it shall enter an ex parte order 
granting the requested delay and an order prohibiting the financial 
institution from disclosing that records have been obtained or that a 
search warrant for such records has been executed. Additional delays 
of up to ninety days may be granted by the court upon application, but 
only in accordance with this subsection. "Upon expiration of the period 
of delay of notification of the customer, the following notice shall be 
mailed to the customer along with a copy of the search warrant: 
"Records or information concerning your transactions held by the 
financial institution named in the attached search warrant were 
obtained by this (agency or department) on (date), Notification was 
delayed beyond the statutory ninety-day delay period pursuant to a 
determination by the court that such notice would seriously jeopardize 
an investigation concerning 
. You may have rights under the 
Right to Financial Privacy Act of 1978.". 
Financial 
records. 
12 use 3407. 
JUDICIAL STJBPENA 
SEC. 1107. A Government authority may obtain financial records 
under section 1102(4) pursuant to judicial subpena only if— 
(1) such siibpena is authorized by law and there is reason to 
believe that the records sought are relevant to a legitimate law 
enforcement inquiry; 
(2) a copy of the subpena has been served upon the customer 
or mailed to his last known address on or before the date on which 
the subpena was served on the financial institution together with 
the following notice which shall state with reasonable specificity 
the nature of the law enforcement inquiry: 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3701 
'•Records or information concerning your transactions which 
are held b}' the financial institution named in the attached subpena 
are being sought by this (agency or department^r authority) in 
accordance with the Right to Financial Privacy Act of 1978 for 
the following purpose: If you desire that such records or informa-
tion not be made available, you must: 
"1. Fill out the accompanying motion paper and sworn 
statement or write one of your own, stating that you are the 
customer whose records are being requested by the Govern-
ment and either giving the reasons you believe that the records 
are not relevant to the legitimate law enforcement inquiry 
stated in this notice or any other legal basis for objecting 
to the release of the records. 
"2. File the motion and statement by mailing or delivering 
them to the clerk of the 
Court. 
"3. Serve the Government authority requesting the records 
bv mailing or delivering a copy of your motion and statement 
to 
"4. Be prepared to come to court and present your position 
in further detail. 
"5. You do not need to have a lawyer, although you may 
wish to employ one to represent you and protect your rights. 
If you do not follow the above procedures, upon the expiration of 
ten days from the date of service or fourteen days from the date 
of mailing- of this notice, the records or information requested 
therein will be made available. These records may be transferred 
to other government authorities for legitimate law enforcement 
inquiries, in Avhich event you will be notified after the transfer;" 
and 
(3) ten days have expired from the date of service or fourteen 
days from the date of mailing of the notice to the customer and 
within such time period the customer has not filed a sworn state-
ment and motion to quash in an appropriate court, or the customer 
challenge provisions of section 1110 have been complied with. 
FORMAL ^VR1TTEN REQUEST 
SEC. 1108. A Government authority may request financial records Financial 
under section 1102(5) pursuant to a formal written request only if— records. 
(1) no administrative summons or subpena authority reasona- 12 USC 3408. 
bly appears to be available to that Government authority to obtain 
financial records for the purpose for which such records are sought; 
(2) the request is authorized by regulations promulgated by the 
head of the agency or department; 
(3) there is reason to believe that the records sought are rele-
vant to a legitimate law enforcement inquiry; and 
(4) (A) a copy of the request has been served upon the cus-
tomer or mailed to his last known address on or before the date 
on which the request was made to the financial institution 
together with the following notice which shall state with reason-
able specificity the nature of the law enforcement inquiry: 
"Records or information concerning your transactions held by 
the financial institution named in the attached request are being 
sought by this (agency or department) in accordance with the 
Right to Financial Privacy Act of 1978 for the following 
purpose: 
92 STAT. 3702 
PUBLIC LAW 95-630—NOV. 10, 1978 
"If you desire that such records or information not be made 
available, you must: 
"1. Fill out the accompanying motion paper and sworn 
statement or write one of your own, stating that you are the 
customer whose records are being requested by the Govern-
ment and either giving the reasons you believe that the 
records are not relevant to the legitimate law enforcement 
inquiry stated in this notice or any other legal basis for 
objecting to the release of the records. 
"2. File the motion and statement by mailing or delivering 
them to the clerk of any one of the following United States 
District Courts: 
"3. Serve the Government authority requesting the records 
by mailing or delivering a copy of your motion and state-
ment to 
"4. Be prepared to come to court and present your position 
in further detail. 
"5. You do not need to have a lawyer, although you may 
wish to employ one to represent you and protect your 
rights. 
If you do not follow the above procedures, upon the expiration 
of ten days from the date of service or fourteen days from the 
date of mailing of this notice, the records or information 
requested therein may be made available. These records may be 
transferred to other Government authorities for legitimate law 
enforcement inquiries, in which event you will be notified after 
the transfer;" and 
(B) ten days have expired from the date of service or fourteen 
days from the date of mailing of the notice by the customer and 
within such time period the customer has not filed a sworn state-
ment and an application to enjoin the Government authority in 
an appropriate court, or the customer challenge provisions of 
section 1110 have been complied with. 
DELAYED NOTICE 
^PRESERVATION OF RECORDS 
12 use 3409. 
SEC. 1109. (a) Upon application of the Government authority, the 
customer notice required under section 1104(c), 1105(2), 1106 (c), 
1107(2), 1108(4), or 1112(b) may be delayed by order of an appro-
priate court if the presiding judge or magistrate finds that— 
(1) the investigation being conducted is within the lawful 
jurisdiction of the Government authority seeking the financial 
records: 
(2) there is reason to believe that the records being sought are 
relevant to a legitimate law enforcement inquiry; and 
(3) there is reason to believe that such notice will result in— 
(A') endangering life or physical safety of any person; 
( B ) flight from prosecution; 
(C) destruction of or tamperiniT with evidence; 
( D ) intimidation of potential witnesses; or 
(E) otherwise seriously ieopardizing an investigation or 
official proceedinjT or unduly delaying a trial or ongoing 
official proceeding to the same extent as the circumstances in 
the preceedin.Tr subpara.crraphs. 
An application for delay must be made with reasonable specificity. 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3703 
(b) (1) If the court makes the findings required in paragraphs (1), 
(2), and (3) of subsection (a), it shall enter an ex parte order grant-
ing the requested delay for a period not to exceed ninety days and an 
order prohibiting the financial institution from disclosing that rec-
ords have been obtained or that a request for records has been made, 
except that, if the records have been sought by a Government 
authority exercising financial controls over foreign accounts in the 
United States under section 5(b) of the Trading with the Enemy 
Act (50 U.S.C. App. 5(b)), the International Emergency Economic 
Powers Act (title II, Public Law 95-223), or section 5 of the United 50 USC 1701 
Nations Participation Act (22 U.S.C. 287c), and the court finds that 
"o^. 
there is reason to believe that such notice may endanger the lives or 
physical safety of a customer or group of customers, or any person 
or group of persons associated with a customer, the court may specify 
that the delay be indefinite. 
(2) Extensions of the delay of notice provided in paragraph (1) 
of up to ninety days each may be granted by the court upon applica-
tion, but only in accordance with this subsection. 
(3) Upon expiration of the period of delay of notification under 
paragraph (1) or (2), the customer shall be served with or mailed 
a copy of the process or request together with the following notice 
which shall state with reasonable specificity the nature of the law 
enforcement inquiry: 
> 
"Records or information concerning your transactions which are 
held by the financial institution named in the attached process or 
request were supplied to or requested by the Government authority 
named in the process or request on (date). Notification was withheld 
pursuant to a determination by the (title of court so ordering) under 
the Right to Financial Privacy Act of 1978 that such notice might 
(state reason). 
The purpose of the investigation 
or official proceeding was 
.". 
(c) When access to financial records is obtained pursuant to section 
1114(b) (emergency access), the Government authority shall, unless 
a court has authorized delay of notice pursuant to subsections (a) and 
(b), as soon as practicable after such records are obtained serve upon 
the customer, or mail by registered or certified mail to his last known 
address, a copy of the request to the financial institution together with 
the following notice which shall state with reasonable specificity the 
nature of the law enforcement inquiry: 
"Records concerning your transactions held by the financial institu-
tion named in the attached request were obtained by (agency or depart-
ment) under the Right to Financial Privacy Act of 1978 on (date) for 
the following purpose: 
Emergency access to such 
records was obtained on the grounds that (state grounds).". 
(d) Any memorandum, affidavit, or other paper filed in connection 
with a request for delay in notification shall be preserved by the court. 
Upon petition by the customer to whom such records pertain, the court 
may order disclosure of such papers to the petitioner unless the court 
makes the findings required in subsection (a). 
CUSTOMER CHALLENGE PROVISIONS 
SEC. 1110. (a) Within ten days of service or within fourteen days 12 USC 3410. 
of mailing of a subpena, summons, or formal written request, a cus-
tomer may file a motion to quash an administrative summons or judicial 
subpena, or an application to enjoin a Government authority from 
obtaining financial records pursuant to a formal written request, with 
92 STAT. 3704 
PUBLIC LAW 95-630—NOV. 10, 1978 
"Delivery." 
28 u s e app. 
Sworn response 
filing. 
Motion or 
application 
denial. 
Notification. 
Certification. 
copies served upon the Government authority. A motion to quash a 
judicial subpena shall be filed in the court which issued the subpena. 
A motion to quash an administrative summons or an application to 
enjoin a Government authority from obtaining records pursuant to a 
formal v^^ritten request shall be filed in the appropriate United States 
district court. Such motion or application shall contain an affidavit 
or sworn statement— 
(1) stating that the applicant is a customer of the financial 
institution from which financial records pertaining to him have 
been sought; and 
(2) stating the applicant's reasons for believing that the 
financial records sought are not relevant to the legitimate law 
enforcement inquiry stated by the Government authority in its 
notice, or that there has not been substantial compliance with the 
provisions of this title. 
Service shall be made under this section upon a Government authority 
by delivering or mailing by registered or certified mail a copy of the 
papers to the person, office, or department specified in the notice which 
the customer has received pursuant to this title. For the purposes of 
this section, "delivery" has the meaning stated in rule 5(b) of the 
Federal Rules of Civil Procedure. 
(b) If the court finds that the customer has complied with subsection 
(a), it shall order the Government authority to file a sworn response, 
which may be filed in camera if the Government includes in its response 
the reasons which make in camera review appropriate. If the court is 
unable to determine the motion or application on the basis of the 
parties' initial allegations and response, the court may conduct such 
additional proceedings as it deems appropriate. All such proceedings 
shall be completed and the motion or application decided within seven 
calendar days of the filing of the Government's response. 
(c) If the court finds that the applicant is not the customer to whom 
the financial records sought by the Government authority pertain, or 
that there is a demonstrable reason to believe that the law enforcement 
inquiry is legitimate and a reasonable belief that the records sought 
are relevant to that inquiry, it shall deny the motion or application, 
and, in the case of an administrative summons or court order other 
than a search warrant, order such process enforced. If the court finds 
that the applicant is the customer to whom the records sought by the 
Government authority pertain, and that there is not a demonstrable 
reason to believe that the law enforcement inquiry is legitimate and a 
reasonable belief that the records sought are relevant to that inquiry, 
or that there has not been substantial compliance with the provisions 
of this title, it shall order the process quashed or shall enjoin the 
Government authority's formal written request. 
(d) A court ruling denying a motion or application under this sec-
tion shall not be deemed a final order and no interlocutory appeal may 
be taken therefrom by the customer. An appeal of a ruling denying a 
motion or application under this section may be taken by the customer 
(1) within such period of time as provided by law as part of any 
appeal from a final order in any legal proceeciing initiated against 
him arising out of or based upon the financial records, or (2) within 
thirty days after a notification that no legal proceeding is contemplated 
against him. The Government authority obtaining the financial records 
shall promptly notify a customer when a determination has been made 
that no legal proceeding against him is contemplated. After one hun-
dred and eighty days from the denial of the motion or application, if 
the Government authority obtaining the records has not initiated such 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3705 
a proceeding, a supervisory official of the Government authority shall 
certify to the appropriate court that no such determination has been 
made. The court may require that such certijfications be made, at rea-
sonable intervals thereafter, until either notification to the customer 
has occurred or a legal proceeding is initiated as described in clause 
(e) The challenge procedures of this title constitute the sole judicial 
remedy available to a customer to oppose disclosure of financial records 
pursuant to this title. 
(f) N^othing in this title shall enlarge or restrict any rights of a 
financial institution to challenge requests for records made by a Gov-
ernment authority under existing law. Nothing in this title shall entitle 
a customer to assert the rights of a financial mstitution. 
DUTY OF FINANCIAL INSTITUTIONS 
SEC. 1111. Upon receipt of a request for financial records made by a 12 U
S
C 3411. 
Government authority under section 1105 or 1107, the financial institu-
tion shall, unless otherwise provided by law, proceed to assemble the 
records requested and must be prepared to deliver the records to the 
Government authority upon receipt of the certificate required under 
section 1103(b). 
USE o r 
INFORMATION 
SEC. 1112. (a) Financial records originally obtained pursuant to this 
title shall not be transferred to another agency or department unless 
the transferring agency or department certifies in writing that there 
is reason to believe that the records are relevant to a legitimate law 
enforcement inquiry within the jurisdiction of the receiving agency or 
department. 
(b) When financial records subject to this title are transferred 
pursuant to subsection (a), the transferring agency or department 
shall, within fourteen days, send to the customer a copy of the certi-
fication made pursuant to subsection (a) and the following notice, 
which shall state the nature of the law enforcement inquiry with rea-
sonable specificity: "Copies of, or information contained in, your 
financial records lawfully in possession of 
have 
been furnished to 
pursuant to the Right of 
Financial Privacy Act of 1978 for the following purpose: 
. If you believe that this transfer has not been made to 
further a legitimate law enforcement inquiry, you may have legal 
rights under the Financial Privacy Act of 1978 or the Privacy Act 
of 1974." 
(c) Notwithstanding subsection (b), notice to the customer may be 
delayed if the transferring agency or department has obtained a court 
order delaying notice pursuant to section 1109 (a) and (b) and that 
order is still in effect, or if the receiving agency or department obtains 
a court order authorizing a delay in notice pursuant to section 1109 (a) 
and (b). Upon the expiration of any such period of delay, the trans-
ferring agency or department shall serve to the customer the notice 
specified in subsection (b) above and the agency or department that 
obtained the court order authorizing a delay in notice pursuant to sec-
tion 1109 (a) and (b) shall serve to the customer the notice specified 
in section 1109(b). 
(d) Nothing in this title prohibits any superAdsory agency from 
exchanging examination reports or other information with another 
supervisory agency. Nothing in this title prohibits the transfer of a 
customer's financial records needed by counsel for a Government 
Transfer, 
certification. 
12 USC 3412. 
Notice. 
39-194 O—80—pt, 3 
68 : QL3 
92 STAT. 3706 
PUBLIC LAW 95-630—NOV. 10, 1978 
authority to defend an action brought by the customer. Nothing in this 
title shall authorize the withholding of information by any officer or 
employee of a supervisory agency from a duly authoi'ized committee 
or subcommittee of the Congress. 
EXCEPTIONS 
12 use 3413. 
SEC. 1113. (a) Nothing in this title prohibits the disclosure of any 
financial records or information which is not identified with or identi-
fiable as being derived from the financial records of a particular 
customer. 
(b) Nothing in this title prohibits examination by or disclosure to 
any supervisory agency of financial records or information in the 
exercise of its supervisory, regulatory, or monetary functions with 
respect to a financial institution. 
(c) Nothing in this title prohibits the disclosure of financial records 
in accordance with procedures authorized by the Internal Revenue 
26 use 1 et seq. Code. 
(d) Nothing in this title shall authorize the withholding of financial 
records or information recjuired to be reported in accordance with any 
Federal statute or rule promulgated thereunder. 
(e) Nothing in this title shall apply when financial records are 
sought by a Government authority imder the Federal Rules of Civil 
or Criminal Procedure or comparable rules of other courts in con-
nection with litigation to which the Government authority and the 
customer are parties. 
(f) Nothing in this title shall apply when financial records are 
sought by a Government authority pursuant to an administrative sub-
pena issued by an administrative law judge in an adjudicatory pro-
ceeding subject to section 554 of title 5, United States Code, and to 
w'hich the Government authority and the customer are parties. 
(g) The notice requirements of this title and sections 1110 and 1112 
shall not apply when a Government authority by a means described in 
section 1102 and for a legitimate law enforcement inquiry is seeking 
only the name, address, account number, and type of account of any 
customer or ascertainable group of customers associated (1) with a 
financial transaction or class of financial transactions, or (2) with a 
foreign country or subdivision thereof in the case of a Government 
authority exercising financial controls over foreign accounts in the 
United States under section 5(b) of the Trading with the Enemy Act 
(50 U.S.C. App. 5(b)); the International Emergency Economic Pow-
50 use 1701 
ers Act (title II, Public Law 95-223); or section 5 of the United 
»ot«- 
Nations Participation Act (22 U.S.C. 287(c)). 
(h) (1) Nothing in this title (except sections 1103, 1117 and 1118) 
shall apply when financial records are sought by a Government 
authority— 
(A) in connection with a lawful proceeding, investigation, 
examination, or inspection directed at the financial institution in 
possession of such records or at a legal entity which is not a cus-
tomer; or 
(B) in connection with the authority's consideration or admin-
istration of assistance to the customer in the form of a Govern-
ment loan, loan guaranty, or loan insurance program. 
Certification. 
(2) When financial records are sought pursuant to this subsection, 
the Government authority shall submit to the financial institution the 
certificate required by section 1103(b). For access pursuant to para-
graph (1)(B), no further certification shall be required for subse-
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3707 
quent access by the certifying Government authority during the term 
of the loan, loan guaranty, or loan insurance agreement. 
(3) After the effectiv^e date of this title, whenever a customer applies 
for participation in a Government loan, loan guaranty, or loan msur-
ance program, the Government authority administering such program 
shall give the customer written notice of the authority's access rights 
under this subsection. Xo further notification shall be required for 
subsequent access by that authority during the term of the loan, loan 
guaranty, or loan insurance agreement. 
(4) Financial records obtained pursuant to this subsection may be 
used only for the purpose for which they were originally obtained, 
and may be transferred to another agency or department only when 
the transfer is to facilitate a lawful proceeding, investigation, exami-
nation, or inspection directed at the financial institution in possession 
of such records, or at a legal entity which is not a customer, except 
that— 
(A) nothing in this paragraph prohibits the use or transfer of 
a customer's financial records needed by counsel representing a 
Government authority in a civil action arising from a Govern-
ment loan, loan guaranty, or loan insurance agreement; and 
(B) nothing in this paragraph prohibits a Government author-
ity providing assistance to a customer in the form of a loan, loan 
guaranty, or loan insurance agreement from using or transferring 
financial records necessary to process, service or foreclose a loan, 
or to collect on an indebtedness to the Government resulting from 
a customer's default. 
(5) Notification that financial records obtained pursuant to this 
subsection may relate to a potential civil, criminal, or regulatory 
violation by a customer may be given to an agency or department with 
jurisdiction over that violation, and such agency or department may 
then seek access to the records pursuant to the provisions of this title. 
(6) Each financial institution shall keep a notation of each dis-
closure made pursuant to paragraph (1) (B) of this subsection, includ-
ing the date of such disclosure and the Government authority to which 
it was made. The customer shall be entitled to inspect this information. 
(i) Nothing in this title (except sections 1115 and 1120) shall apply 
to any subpena or court order issued in connection with proceedings 
before a grand jury. 
(j) This title shall not apply when financial records are sought by 
the General Accounting Office pursuant to an authorized proceeding, 
investigation, examination or audit directed at a government authority. 
Notice. 
Audit. 
SPECIAL PROCEDUKES 
SEC. 1114. (a) (1) Nothing in this title (except sections 1115, 1117, 12 USC 3414 
1118, and 1121) shall apply to the production and disclosure of finan-
cial records pursuant to requests from— 
(A) a Government authority authorized to conduct foreign 
counter- or foreign positive-intelligence activities for purposes of 
conducting such activities; or 
(B) the Secret Service for the purpose of conducting its pro-
tective functions (18 U.S.C. 3056; 3 U.S.C. 202, Public Law 90-
331, as amended). 
(2) In the instances specified in paragraph (1), the Government Certification, 
authority shall submit to the financial institution the certificate 
required in section 1103(b) signed by a supervisory official of a rank 
designated by the head of the Government authority. 
<0 ii-
92 STAT. 3708 
PUBLIC LAW 95-630—NOV. 10, 1978 
Obtaining 
financial records. 
Disclosure, 
(3) No financial institution, or officer, employee, or agent of such 
prohibition. 
institution, shall disclose to any person that a Government authority 
described in paragraph (1) has sought or obtained access to a custom-
er's financial records. 
(4) The Government authority specified in paragraph (1) shall 
compile an annual tabulation of the occasions in which this section 
was used. 
(b) (1) Nothing in this title shall prohibit a Government authority 
from obtaining miancial records from a financial institution if the 
Government authority determines that delay in obtaining access to 
such records would create imminent danger of— 
^A) physical injury to any person; 
(B) serious property damage; or 
(C) flight to avoid prosecution. 
(2) In the instances specified in paragraph (1), the Government 
shall submit to the financial institution of the certificate required in 
section 1103(b) signed by a supervisory official of a rank designated 
by the head of the Government authority. 
(3) Within five days of obtaining access to financial records under 
this subsection, the Government authority shall file with the appropri-
ate court a signed, sworn statement of a supervisory official of a rank 
designated by the head of the Government authority setting forth the 
grounds for the emergency access. The Government authority shall 
thereafter comply with the notice provisions of section 1109(c). 
(4) The Government authority specified in paragraph (1) shall 
compile an annual tabulation of the occasions in which this section was 
used. 
COST REIMBURSEMENT 
SEC. 1115. (a) Except for records obtained pursuant to section 
1103(d) or 1113 (a) through (h), or as otherwise provided by law, a 
Government authority shall pay to the financial institution assembling 
or providing financial records pertaining to a customer and in accord-
ance with procedures established by this title a fee for reimbursement 
for such costs as are reasonably necessary and which have been directly 
incurred in searching for, reproducing, or transporting books, papers. 
Regulation. 
records, or other data required or requested to be produced. The Board 
of Governors of the Federal Reserve System shall, by regulation, estab-
lish the rates and conditions under which such payment may be made. 
Effective date. 
(b) This section shall take effect on October 1,1979. 
Annual 
tabulation. 
12 use 3415. 
JURISDICTION 
12 use 3416. 
12 use 3417. 
SEC. 1116. An action to enforce any provision of this title may be 
brought in any appropriate United States district court without 
regard to the amount in controversy within three years from the date 
on which the violation occurs or the date of discovery of such violation, 
whichever is later. 
CIVIL PENALTIES 
SEC. 1117. (a) Any agency or department of the United States or 
financial institution obtaining or disclosing financial records or infor-
mation contained therein in violation of this title is liable to the cus-
tomer to whom such records relate in an amount equal to the sum of— 
(1^ $100 without regard to the volume of records involved; 
(2) any actual damages sustained by the customer as a result 
of the disclosure; 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3709 
(3) such punitive damages as the court may allow, where the 
violation is found to have been willful or intentional; and 
(4) in the case of any successful action to enforce liability 
under this section, the costs of the action together with reasonable 
attorney's fees as determined by the court. 
(b) Whenever the court determines that any agency or department 
of the LTnited States has violated any provision of this title and the 
court finds that the circumstances surrounding the violation raise 
questions of whether an officer or employee of the department or 
agency acted willfully or intentionally with respect to the violation, 
the Civil Service Commission shall promptly initiate a proceeding 
to determine whether disciplinary action is warranted against the 
agent or employee who was primarily responsible for the violation. 
The Commission after investigation and consideration of the evidence 
submitted, shall submit its findings and recommendations to the 
administrative authority of the agency concerned and shall send 
copies of the findings and recommendations to the officer or employee 
or his representative. The administrative authority shall take the cor-
rective action that the Commission recommends. 
(c) Any financial institution or agent or employee thereof making Liability, 
a disclosure of financial records pursuant to this title in good-faith 
reliance upon a certificate by any Government authority shall not be 
liable to the customer for such disclosure. 
(d) The remedies and sanctions described in this title shall be the 
only authorized judicial remedies and sanctions for violations of this 
title. 
INJUNCTIVE RELIEF 
| 
SEC. 1118. In addition to any other remedy contained in this title, 12 USC 3418. 
injunctive relief shall be available to require that the procedures of 
this title are complied with. In the event of any successful action, costs 
together with reasonable attorney's fees as determined by the court 
may be recovered. 
SUSPENSION o r STATUTES OF LIMITATIONS 
SEC. 1119. If any individual files a motion or application under this 12 USC 3419. 
title which has the effect of delaying the access of a Government 
authority to financial records pertaining to such individual, any 
applicable statute of limitations shall be deemed to be tolled for the 
period extending from the date such motion or application was filed 
until the date upon which the motion or application is decided. 
GRAND JURY INFORMATION 
SEC. 1120. Financial records about a customer obtained ;from a 12 USC 3420. 
financial institution pursuant to a subpena issued under the authority 
of a Federal grand jury— 
(1) shall be returned and actually presented to the grand jury ; 
(2) shall be used only for the purpose of considering whether 
to issue an indictment or presentment by that grand jury, or of 
prosecuting a crime for which that indictment or presentment is 
issued, or for a purpose authorized by rule 6(e) of the Federal 
Rules of Criminal Procedure; 
18 USC app. 
(3) shall be destroyed or returned to the financial institution if 
not used for one of the purposes specified in paragraph (2); and 
(4) shall not be maintained, or a description of the contents of 
such records shall not be maintained by any Government authority 
92 STAT. 3710 
PUBLIC LAW 95-630—NOV. 10, 1978 
18 u s e app. 
Report to 
congressional 
committees. 
12 use 3421. 
Report to 
congressional 
committees. 
12 u s e 3422. 
other than in the sealed records of the grand jury, unless such 
record has been used in the prosecution of a crime for which the 
grand jury issued an indictment or presentment or for a purpose 
authorized by rule 6(e) of the Federal Rules of Criminal 
Procedure. 
REPORTING REQUIREMENTS 
SEC. 1121. (a) In April of each year, the Director of the Admin-
istrative Office of the United States Courts shall send to the appro-
priate committees of Congress a report concerning the number of 
applications for delays of notice made pursuant to section 1109 and 
the number of customer challenges made pursuant to section 1110 
during the preceding calendar year. Such report shall include: the 
identity of the Government authority requesting a delay of notice; the 
number of notice delays sought and the number granted under each 
subparagraph of section 1109(a)(3); the number of notice delay 
extensions sought and the number granted; and the number of custo-
mer challenges made and the number that are successful. 
(b) In April of each year, each Government authority that requests 
access to jfinancial records of any customer from a financial institution 
pursuant to section 1104, 1105, 1106, 1107, 1108, 1109, or 1114 shall 
send to the appropriate committees of Congress a report describing 
requests made during the preceding calendar year. Such report shall 
include the number of requests for records made pursuant to each 
section of this title listed in the preceding sentence and any other 
related information deemed relevant or useful by the Government 
authority. 
SEC. 1122. The Securities and Exchange Commission shall not be 
subject to the provisions of this title for a period of two years from 
the date of enactment of the title. 
TITLE XII—CHARTERS FOR THRIFT INSTITUTIONS 
SEC. 1201. Section 2(d) of the Home Owners' Loan Act of 1933 
(12 U.S.C. 1462(d)) is amended to read as follows: 
"Association." 
"(d) The term 'association' means a Federal savings and loan asso-
ciation or a Federal mutual savings bank chartered by the Board 
under section 5, and any reference in any other law to a Federal sav-
ings and loan association shall be deemed to be also a reference to a 
Federal mutual savings bank, unless the context indicates otherwise.". 
SEC. 1202. Section 5(a) of the Home Owners' Loan Act of 1933 (12 
U.S.C. 1464(a)) is amended to read as follows: 
Rules and 
"SEC. 5. (a) In order to provide local mutual thrift institutions in 
regulations. 
which people may invest their funds and in order to provide for the 
financing of homes, the Board is authorized, under such rules and reg-
ulations as it may prescribe, to provide for the organization, incorpora-
tion, examination, operation, and regulation of associations to be 
known as 'Federal Savings and Loan Associations', or 'Federal mutual 
savings banks' (but only in the case of institutions which, prior to con-
version, were State mutual savings banks located in States which 
authorize the chartering of State mutual savings banks, provided such 
conversion is not in contravention of State law), and to issue charters 
therefor, giving primary consideration to the best practices of local 
mutual thrift and home-financing institutions in the United States. 
An association which was formerly organized as a savings bank under 
State law may not convert from the mutual to the stock form of owner-
ship. An association which was formerly organized as a savings bank 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3711 
under State law may not convert from the mutual to the stock form of 
ownership," An association which was formally organized as a savings 
bank under State law may, to the extent authorized by the Board, 
continue to carry on any activities it was engaged in on Decem-
ber 31,1977, and to retain or make any investments of a type it held on 
that date, except that its equity, corporate bond, and consumer loan 
investments may not exceed the average ratio of such investments to 
total assets for the five-year period immediately preceding the filing of 
an application for conversion and such an association which was 
formerly organized as a savings bank under State law shall only be 
permitted to establish branch offices and other facilities in accordance 
with the limitations imposed by State law controlling applications of 
a savings bank organized under such State law, provided that such an 
, 
association: (1) shall be exempt from any numerical limitations of 
State law on the establishment of branch offices and other facilities, 
and (2) may, in any case, subject to the approval of the Board, estab-
lish branch offices and other facilities in its own Standard Metropolitan 
Statistical Area, its own county or within thirty-five miles of its home 
office, but only in its State of domicile. An association which was 
formerly organized as a savings bank under State law shall be sub-
ject to the requirements of State law (including any regulations 
promulgated thereunder and any sanction for the violation of any 
such law or regulation) in effect at the time of conversion, in the State 
of its original charter— 
"(1) pertaining to discrimination in the extension of home 
mortgage loans or adjustment in the terms of mortgage instru-
ments based on neighborhood or geographical area, 
:. 
"(2) pertaining to requirements imposed under the Consumer 
Credit Protection Act, 
15 USC 1601 
if the Board determines that State law and regulations impose more note, 
stringent requirements than Federal law and regulations.". 
SEC. 1203. Section 403(a) of the National Housing Act (12 U.S.C. 
1726(a)) is amended by inserting after "Federal savings and loan 
associations" the following: "and Federal mutual savings banks". 
SEC. 1204. The first paragraph of section 6 (i) of the Home Owners' 
Loan Act of 1933 (12 U.S.C. 1464(i)) is amended by inserting 
" (including a savings bank)" after "member of a Federal Home Loan 
Bank". 
SEC. 1205. The Federal Deposit Insurance Act is amended by adding 
at the end thereof the following new section: 
u 
CONVERSION o r MUTUAL SAVINGS BANKS 
"SEC. 26. With respect to any State-chartered insured mutual sav- Indemnification, 
ings bank which converts into a Federal savings bank or merges or 12 USC 1831c. 
consolidates into a Federal savings bank or a savings bank which is 
(or within sixty days after the merger or consolidation becomes) an 
insured institution within the meaning of section 401 of the National 
Housing Act, the Corporation shall indemnify the Federal Savings 
and Loan Insurance Corporation against any losses incurred by it 
which arise out of losses incurred by the converting bank prior to 
conversion as follows: One hundred per centum of such losses incurred 
by the Federal Savings and Loan Insurance Corporation during the 
first two years after conversion, 75 per centum during the third year, 
50 per centum during the fourth year, and 25 per centum during the 
fifth year. The Corporation and the Federal Savings and Loan Insur-
ance Corporation shall, within six months after enactment hereof, 
mutually agree on what shall be treated as 'losses incurred by it which 
arise out of losses incurred by the converting bank prior to conversion' 
92 STAT. 3712 
PUBLIC LAW 95-630—NOV. 10, 1978 
Effective date. 
12 use 1832 
note. 
26 use 401. 
"Per account.' 
26 use 408. 
"Per account." 
for purposes hereof and, failing such agreement, the General Account-
ing Office shall prescribe the meaning of those terms. Any conversion, 
merger, or consolidation covered by this section shall not be deemed a 
termination of insured status under section 8(a) of this Act.". 
TITLE XIII—NOW ACCOUNTS 
SEC. 1301. Section 2(a") of Public Law 93-100 (12 U.S.C. 1832(a)) 
is amended by inserting "New York," after "Vermont,". 
SEC. 1302. This title shall take effect upon enactment. 
TITLE XIV—INSURANCE OF IRA AND KEOGH 
ACCOUNTS 
SEC. 1401. (a) Section 11(a) of the Federal Deposit Insurance Act, 
as amended (12 U.S.C. 1821 (a)), is amended by adding at the end 
thereof the following new paragraph: 
" (3) Notwithstanding any limitation in this Act or in any other pro-
vision of law relating to the amount of deposit insurance available for 
the account of any one depositor, time and savings deposits in an 
insured bank made pursuant to a pension or profit-sharing plan 
described in section 401(d) of the Internal Revenue Code of 1954, as 
amended, or made in the form of individual retirement accounts as 
described in section 408(a) of the Internal Revenue Code of 1954, as 
amended, shall be insured in the amount of $100,000 per account. As 
to any plan qualifying under section 401(d) or section 408(a) of the 
Internal Revenue Code of 1954, the term 'per account' means the pres-
ent vested and ascertainable interest of each beneficiary under the plan, 
excluding any remainder interest created by, or as a result of, the 
plan.". 
(b) Section 405(d) of the National Housing Act, as amended (12 
U.S.C. 1728(d)), is amended by adding at the end thereof the follow-
ing new paragraph: 
"(3) Notwithstanding any limitation in this title or in any other 
provision of law relating to the amount of deposit insurance available 
for any one account, funds invested in an insured institution pursuant 
to a pension or profit-sharing plan described in section 401(d) of the 
Internal Revenue Code of 1954, as amended, and funds invested in an 
insured institution in the form of individual retirement accounts as 
described in section 408(a) of the Internal Revenue Code of 1954, as 
amended, shall be insured in the amount of $100,000 per account. As 
to any plan qualifying under section 401(d) or section 408(a) of the 
Internal Revenue Code of 1954, the term 'per account' means the pres-
ent vested and ascertainable interest of each beneficiary under the plan, 
excluding any remainder interest created by, or as a result of, the 
plan.". 
(c) Section 207(c) of the Federal Credit Union Act, as amended 
(12 U.S.C. 1787(c)), is amended by adding at the end thereof the 
following paragraph: 
"(3) Notwithstanding any limitation in this title or in any other 
provision of law relating to the amount of insurance available for 
the account of any one depositor or member, funds invested in a credit 
union insured in accordance with this title pursuant to a pension or 
profit-sharing plan described in section 401 (d) of the Internal Reve-
nue Code of 1954, as amended, and funds invested in such an insured 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3713 
credit union in the form of individual retirement accounts as described 
in section 408(a) of the Internal Kevenue Code of 1954, as amended, 
shall be insured in the amount of $100,000 per account. As to any plan 
qualifying under section 401(d) or section 408(a) of the Internal 
Revenue Code of 1954, the term 'per account' means the present vested 
and ascertainable interest of each beneficiary under the plan, excluding 
any remainder interest created by, or as a result of, the plan.". 
SEC. 1402. This title shall take effect upon enactment. 
TITLE XV—MISCELLANEOUS PROVISIONS 
"Per account.' 
26 u s e 401, 
408. 
Effective date. 
12 u s e 1728 
note. 
SEC. 1501. Paragraph (2) of section 3(c) of Public Law 94-222 (15 
U.S.C. 1666f note) is amended to read as follows : 
"(2) The amendment made by paragraph (1) shall cease to be effec-
tive on February 27,1981.". 
SEC. 1502. Section 803 of Public Law 95-128 (12 U.S.C. 2902) is 
amended by adding at the end thereof the following new subsection: 
"(4) A financial institution whose business predominately con-
sists of serving the needs of military personnel who are not located community 
within a defined geographic area may define its 'entire community' 
to include its entire deposit customer base without regard to geo-
graphic proximity.". 
SEC. 1503. The last sentence of section 245 of the National Housing 
Act is amended by inserting immediately before "limiting the amount 
of interest" "(1)" and by inserting immediately before the period at 
the end thereof the following: ", or (2) requiring a minimum amorti-
zation of principle or otherwise relating to the amortization of prin-
ciple under the mortgage or loan". 
SEC. 1504. Section 5169 of the Revised Statutes (12 U.S.C. 27) is 
amended by adding at the end thereof the following new sentence: "A 
National Bank xAssociation, to which the Comptroller of the Currency 
has heretofore issued or hereafter issues such certificate, is not illegally 
constituted solely because its operations are or have been required by 
the Comptroller of the Currency to be limited to those of a trust com-
pany and activities related thereto." 
SEC. 1505. This title shall take effect upon enactment. 
"Entire 
12 use 
1715Z-10. 
TITLE XVI—INTEREST RATE CONTROL 
SEC. 1601. Section 7 of the Act of September 21, 1966 (Public Law 
89-597) is amended by striking out "December 15,1978" and inserting 
in lieu thereof "December 15, 1980". 
SEC. 1602. Section 102 of Public Law 94-200 (12 U.S.C. 461 note) 
is amended by adding at the end thereof the following new subsection: 
"(c) In any State where any provision of State or Federal law 
authorizes any savings and loan, building and loan, or homestead asso-
ciation (including any cooperative bank) the deposits or accounts of 
which are insured by the Federal Savings and Loan Insurance Corpo-
ration or any mutual savings bank, as defined in section 3(f) of the 
Federal Deposit Insurance Act (12 U.S.C. 1813(f)), to offer any 
third-party payment account, there shall be no differential in the maxi-
mum interest rate payable tjetween (1) banks (other than savings 
banks) the deposits of which are insured by the Federal Deposit In-
surance Corporation, and (2) savings and loan, building and loan, or 
homestead associations (including cooperative banks) the deposits or 
accounts of which are insured by the Federal Savings and Loan Insur-
Effective date. 
12 u s e 27 note. 
12 u s e 461 note. 
92 STAT. 3714 
PUBLIC LAW 95-630—NOV. 10, 1978 
Effective date. 
12 u s e 461 note. 
ance Corporation or mutual savings banks, as defined in section 3(f) of 
the Federal Deposit Insurance Act (12 U.S.C. 1813(f)), with respect 
to savings deposits or accounts from which automatic transfers to the 
institution itself or to a demand or other deposit account of the same 
depositor or accountholder at such institution may be made as a nor-
mal practice, pursuant to a prearranged agreement with the depositor 
or accountholder to make such transfers to cover checks, drafts, or simi-
lar instruments drawn by the depositor or accountholder on such insti-
tution. Notwithstanding any of the provisions of subsection (b) of 
this section, the maximum rate of interest payable on a savings deposit 
or account described in the preceding sentence shall be the rate which 
banks (other than mutual savings banks) the deposits of which are 
insured by the Federal Deposit Insurance Corporation may pay on 
such accounts.". 
SEC. 1603. This title shall take effect upon enactment. 
T I T L E X V I I — F E D E E A L SAVINGS A N D LOAN 
I N V E S T M E N T 
A U T H O R I T Y 
SEC. 1701. With the exception of undesignated paragraph 15, 17, 
and 23, section 5 (c) of the Home Owners' Loan Act of 1933 (12 U.S.C. 
1464 (c)) is amended to read as follows: 
Rules and 
"(C) An association may, to such extent, and subject to such rules 
regulations. 
^^^ regulations as the Board may prescribe from time to time invest 
in, sell, or otherwise deal with the following loans, or other invest-
ments : 
"(1) LOANS OR INVESTMENTS WITHOUT PERCENTAGE OF ASSETS 
LIMITATION.—^Without limitation as a percentage of assets, the 
following are permitted: 
" ( A ) 
SAVINGS ACCOUNT LOANS.—Loans on the security of 
its savings accounts. 
" ( B ) 
SINGLE FAMILY AND MULTIFAMILT MORTGAGE LOANS.— 
* 
Loans on the security of first liens upon residential real prop-
erty within one hundred miles of its home office or within the 
State in which such home office is located; loans so secured 
shall not exceed $60,000 in principal amount (except that with 
respect to residential real estate in Alaska, Guam, and Hawaii 
the foregoing limitation may be increased by not to exceed 
50 per centum) for each single family dwelling nor exceed 
such amount per room within the limits allowable (at the 
time of the loan) in section 207(c) (3) of the National Hous-
12 use 1713. 
ing Act for any other dwelling unit covered by such lien. 
" ( C ) UNITED 
STATES 
GOVERNMENT 
SECURITIES.—Invest-
ments in obligations of, or fully guaranteed as to principal 
and interest by, the United States. 
" ( D ) FEDERAL HOME LOAN BANK AND FEDERAL NATIONAL 
MORTGAGE ASSOCIATION SECURITIES.—Investments in the stock 
or bonds of a Federal home loan bank or in the stock of the 
Federal National Mortgage Association. 
" ( E ) 
FEDERAL HOME LOAN MORTGAGE CORPORATION INSTRU-
MENTS.—^Investments in mortgages, obligations, or other 
securities which are or ever have been sold by the Federal 
Home Loan Mortgage Corporation pursuant to section 305 
12 use 1454, 
or 306 of the Federal Home Loan Mortgage Corporation Act. 
1455. 
" ( F ) 
OTHER 
GOVERNMENT 
SECURITIES.—Investments 
in 
obligations, participations, securities, or other instruments 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3715 
of, or issued by, or fully guaranteed as to principal and inter-
est by, the Federal National Mortgage Association, the Stu-
dent Loan Marketing Association or the Government National 
Mortgage Association, or any other agency of the L'nited 
States and an association may issue and sell securities which 
are guaranteed pursuant to section 306(g) of the National 
Housing Act. 
" ( G ) B A N K DEPOSITS.—Investments in the time deposits, 
certificates, or accounts of any bank the deposits of which are 
insured by the Federal Deposit Insurance Corporation. 
" ( H ) STATE SECUKITIKS.—Investments in general obliga-
tions of any State or any political subdivision thereof. 
" ( I ) 
PURCHASE OF INSURED LOANS.—Purchase subject 
to 
all the provisions of paragraph ( 1 ) ( B ) , except the area 
restriction, loans secured by first liens on improved real estate 
which are insured under provisions of the National Housing 
Act, or insured as provided in the Servicemen's Readjustment 
Act of 1944 or chapter 37 of title 38 of the United States 
Code. 
" ( J ) 
H O M E 
IMPROVEMENT 
AND MOBILE 
HOME 
LOANS.— 
Loans made for the repair, equipping, alteration, or improve-
ment of any residential real property, and loans made for the 
purpose of mobile home 
financing. 
" ( K ) 
INSURED LOANS TO FINANCE THE PURCHASE OF FEE 
SIMPLE.—Loans as to which the association has the benefit 
of insurance under section 240 of the National Housing Act, 
or of a commitment or agreement therefor. 
" ( L ) LOANS 
TO FINANCIAL 
INSTITUTIONS, BROKERS, AND 
DEALERS.—Loans to financial institutions with respect to which 
the United States or an agency or instrumentality thereof has 
any function of examination or supervision, or to any broker 
or dealer registered with the Securities and Exchange Com-
mission, secured by loans, obligations, or investments in which 
the association has the statutory authority to invest directly. 
" ( M ) 
LIQUIDITY INVESTMENTS.—Investments which, at the 
time of making, are assets eligible for inclusion tow^ard the 
satisfaction of any liquidity requirement imposed by the 
Board pursuant to section 5A of the Federal Home Loan 
Bank Act, but only to the extent that the investment is per-
mitted to be so included under regulations of the Board or 
is otherwise authorized. 
" ( N ) 
INVESTMENT I N THE NATIONAL HOUSING PARTNERSHIP 
CORPORATION, PARTNERSHIPS, AND JOINT VENTURES.—Invest-
ments in shares of stock issued by a corporation authorized 
to be created pursuant to title IX'^of the Housing and Urban 
Development Act of 1968, and investments in any partner-
ship, limited partnership or joint venture formed pursuant to 
section 907(a) or 907(c) of that Act. 
"(O) 
HOUSING 
AND 
URBAN 
DEVELOPMENT 
GUARANTEED 
INVESTMENTS.—^Loans as to which the association has the 
benefit of any guaranty under title TV of the Housing and 
Urban Development Act of 1968 or under part B of the Urban 
Growth and New Community Development Act of 1970 or 
under section 802 of the Housing and Community Develop-
ment Act of 1974 as now or hereafter in effect, or of a com-
mitment or agreement therefor. 
12 
use 
1721. 
12 
use 
1701. 
38 
use 
1801. 
12 
use 
1715Z-5. 
12 
use 
1425a. 
42 
use 
3931. 
42 
use 
3937. 
42 
use 
3901. 
42 
use 
4511. 
42 
use 
1440. 
92 STAT. 3716 
PUBLIC LAW 95-630—NOV. 10, 1978 
" ( P ) 
STATE HOUSING CORPORATION INVESTMENTS.—^Invest-
ments in, commitments to invest in, loans to, or commitments 
to lend to any State housing corporation, j^rovided that such 
N 
obligations or loans are secured directly, or indirectly through 
an agent or fiduciary, by a first lien on improved real estate 
which is insured under the provisions of the National Housing 
12 use 1701. 
Act, as amended, and that in the event of default, the holder 
of such obligations or loans would have the right directly, or 
indirectly through an agent or fiduciary, to cause to be sub-
ject to the satisfaction of such obligations or loans the real 
estate described in the first lien or the insurance proceeds 
under the National Housing Act. 
"(2) 
LOANS OR INVESTMENTS LIMITED TO 20 PER CENTUM OF 
ASSETS.—The following loans or investments are x)ermitted, but 
authority conferred in the following subparagraphs is limited to 
not in excess of 20 per centum of the assets of the association for 
each subparagraph: 
" (A) OTHER REAL ESTATE LOANS.—Loans on security of first 
= 
liens upon improved real estate; but the amount deemed to 
be loaned in transactions which, except for excess in amount, 
would be eligible for such association under subparagraphs 
(1)(B) or (1)(I) shall be only the outstanding amount of 
such excess. 
" ( B ) PARTICIPATION LOANS.—^Without regard to the area 
restriction contained in subparagraph ( 1 ) ( B ) , investments 
for the making or purchase of participation interests in first 
liens on residential real property. 
"(3) 
LOANS OR INVESTMENTS LIMITED TO 5 PER CENTUM or 
ASSETS.—The following loans or investments are permitted, but the 
authority conferred in the following subparagraphs is limited to 
not in excess of 5 per centum of assets of the association for each 
subparagraph: 
" ( A ) EDUCATION LOANS.—^Loans made for the payment of 
expenses of college, university, or vocational education. 
" ( B ) LAND ACQUISITION.—An association whose general 
reserves, surplus, and undivided profits aggregate a sum in 
excess of 5 per centum of its withdrawable accounts is 
authorized to invest in, subject to the area restriction con-
tained in subparagraph (1) ( B ) , loans to finance the acquisi-
tion and development of land for primary residential usage. 
"(C) 
HOUSING FACILITIES FOR THE AGING.—Subject to the 
area restriction contained in subparagraph ( 1 ) ( B ) , amor-
tized loans which are secured by first liens upon improved 
real estate used to provide housing facilities for the aging. 
" ( D ) 
COMMUNITY 
DEVELOPMENT 
INVESTMENTS.—Invest-
ments in real property and obligations secured by liens on 
real property located within a geographic area or neighbor-
hood receiving concentrated development assistance by a 
local government under title I of the Housing and Community 
42 use 5301. 
Development Act of 1974, as amended but no investment in 
real property may exceed an aggregate investment of 2 per 
centum of the assets of the association. 
" ( E ) NONCONFORMING LOANS.—Loans upon the security of 
or respecting real property or interests therein used for pri-
marily residential or farm purposes that do not comply with 
the limitations of this section. 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3717 
" ( F ) CONSTRUCTION LOANS, WITH OR WITHOUT SECURITY.— 
Subject to the area restriction of subparagraph 
( 1 ) ( B ) , 
investments not exceeding the greater of (A) the sum of its 
surplus, undivided profits, and reserves or (B) 5 per centum 
of the assets of the association, in loans the principal purpose 
of which is to provide financing with respect to what is or is 
expected to become primarily residential real estate where 
(i) the association relies substantially for repayment on the 
borrower's general credit standing and forecast of income, 
with or without other security, or (ii) the association relies 
on other assurances for repayment, including but not limited 
to a guaranty or similar obligation of a third party, and, in 
either case described in clause (i) or (ii), regardless of 
whether or not the association takes security; and invest-
ments under this subsection shall not be included in any 
percentage of assets or other percentage referred to in this 
*"'^, 
subsection. 
"(4) 
OTHER LOANS AND IN^^ESTMENTS.—The following addi-
tional loans and other investments to the extent authorized 
below: 
" ( A ) 
BUSINESS DEVELOPMENT CREDIT CORPORATIONS.—An 
association whose general reserves, surplus and undivided 
profits aggregate a sum in excess of 5 per centum of its 
withdrawable accounts is authorized to invest in, lend to, or 
to commit itself to lend to, any business development credit 
corporation incorporated in the State in which the home 
office of the association is located in the same manner and to 
the same extent as savings and loan associations chartered 
by such State are authorized, but the aggregate amount of 
such investments, loans, and commitments of any such 
association shall not exceed one-half of 1 per centum of the 
total outstanding loans of the association or $250,000, 
whichever is less. 
" ( B ) 
SERVICE CORPORATIONS.—Investments in the capital 
stock, obligations, or other securities of any corporation 
organized under the laws of the State in which the home 
office of the association is located, if the entire capital stock 
of such corporation is available for purchase only by savings 
and loan associations of that State and by Federal associa-
tions having their home offices therein, but no association 
may make any investment under this subparagraph if its 
aggregate outstanding investment under this subparagraph 
would exceed 1 per centum of the assets of the association. 
"(C) 
FOREIGN ASSISTANCE, CERTAIN GUARANTEED LOANS.— 
(i) Loans secured by mortgages as to which the association 
has the benefit of insurance under title X of the National 
Housing Act or of a commitment or agreement for such insur-
ance, or (ii) acquire and hold investments in housing project 
loans having the benefit of any guaranty under section 221 of 
the Foreign Assistance Act of 1961 or loans having the bene- 22 USC 2181. 
fit of any guaranty under section 224 of such Act, or any 22 USC 2184. 
commitment or agreement with respect to such loans made 
pursuant to either of such sections and in the share capital 
and capital reserve of the Inter-American Savings and Loan 
Bank. This authority extends to the acquisition, holding, and 
disposition of loans having the benefit of any guaranty under 
section 221 or 222 of such Act as hereafter amended or 22 USC 2181, 
2182. 
92 STAT. 3718 
PUBLIC LAW 95-630—NOV. 10, 1978 
extended, or of any commitment or agreement for any such 
guaranty. Investments under clause (i) of this subparagraph 
shall not be included in any percentage of assets or other 
percentage referred to in this section. Investments under 
clause (ii) of this subparagraph shall not exceed, in the case 
of any association, 1 per centum of the assets of such 
association. 
" (D) STATE AND LOCAL GOVERNMENT OBLIGATIONS.—^An asso-
ciation whose general reserves, surplus, and undivided profits 
V 
aggregate a sum in excess of 5 per centum of its withdrawable 
accounts is authorized to invest in obligations which constitute 
prudent investments, as defined by the Board, of its home 
State and political subdivisions thereof 
(including any 
agency, corporation, or instrumentality) : Provided^ 
That 
the proceeds of such obligations are to be used for rehabilita-
tion, financing, or the construction of residential real estate: 
Arid -provided further, 
That the aggregate amount of all 
investments under this subparagraph shall not exceed the 
amount of the association's general reserves, surplus and 
undivided profits. 
"(5) CONVERTED STATE-CHARTERED ASSOCIATIONS.—Any associa-
tion which is converted from a State-chartered institution may 
continue to make loans in the territory in which it made loans 
while operating under State charter. 
"(6) DEFINITIONS.—As used in this section— 
" ( A ) the terms 'residential real property' or 'residential 
real estate' include leaseholds and mean homes (including 
condominiums and cooperatives except that in connection 
with loans on individual cooperative units, the first lien 
requirement shall not apply but such loans shall be adequately 
secured as defined by the Board), combinations of homes and 
business property, other dwelling units, or combinations of 
dwelling units including homes and business property involv-
ing only minor or incidental business use; 
''(B) the term 'loans' includes obligations and extensions 
or advances of credit; and any reference to a loan or invest-
ment includes an interest in such a loan or investment; and 
"(C) the term 'State' means any State of the United States, 
the District of Columbia, the Commonwealth of Puerto Eico, 
the Virgin Islands, the Canal Zone, Guam, American Samoa, 
and any territory or possession of the United States.", 
(b) Undesignated paragraph 15 of such section 5(c) is transferred 
to the end of section 5 of the Home Owners' Loan Act of 1933 (12 
U.S.C. 1464) and redesignated as subsection (m) of that section, 
undesignated paragraph 17 of such section 5(c) is transferred to the 
end of section 5 of the Home Owners' Loan Act of 1933 and redesig-
nated as subsection (1) of that section, and undesignated paragraph 23 
of such section 5(c) is transferred to the end of section 5(b) of the 
Home Owners' Loan Act of 1933 and redesignated as section 5(b) (3). 
SEC. 1702. Section 302(h) of the Federal Home Loan Mortgage Cor-
poration Act (12 U.S.C. 1451 (h)) is amended by adding the following 
"Residential 
at the end thereof: "The term 'residential mortgage' is also deemed to 
mortgage.' 
include a secured loan or advance of credit the proceeds of which are 
intended to finance the rehabilitation, renovation, modernization, 
refurbishment, or improvement of properties as to which the Corpora-
tion may purchase a 'residential mortgage' as defined under the first 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3719 
sentence of this subsection. The maximum principal obligation of loans 
purchased by virtue of the preceding sentence shall not exceed the 
dollar limits prescribed by the Federal Home Loan Bank Board with 
respect to similar types of loans made by Federal savings and loan 
associations. A 'secured loan or advance of credit' is one in which a 
security interest is taken in the rehabilitated, renovated, modernized, 
refurbished, or improved property.". 
SEC. 1703. This title shall take effect upon enactment. 
TITLE XVIII—NATIONAL CKEDIT UNION CENTRAL 
LIQUIDITY FACILITY 
SEC. 1801. This title may be cited as the "National Credit Union 
Central Liquiditv Facility Act"', 
SEC. 1802. The Federal Credit Union Act (12 U.S.C. 1751 et seq.) is 
amended by adding at the end thereof the following new subchapter: 
"SUBCHAPTER III—CENTRAL LIQUIDITY 
FACILITY 
"SEC. 301. The Congress finds that the establishment of a National 12 USC 1795. 
Credit Union Central Liquidity Facility is needed to improve general 
financial stability by meeting the liquidity needs of credit unions and 
thereby encourage savings, support consumer and mortgage lending, 
and provide basic financial resources to all segments of the economy. 
"Secured loan or 
advance of 
credit." 
Effective date. 
12 USC 1464 
note. 
National Credit 
Union Central 
Liquidity Facility 
Act. 
Short title. 
12 USC 1751 
note. 
a DEFINITIONS 
"SEC. 302. As used in this subchapter, the term— 
"(1) 'liquidity needs' means the needs of credit unions pri-
marily serving natural persons for— 
"(A) short-term adjustment credit available to assist in 
meeting temporary requirements for funds or to cushion more 
persistent outflows of funds pending an orderly adjustment 
of credit union assets and liabilities; 
"(B) seasonal credit available for longer periods to assist 
in meeting seasonal needs for funds arising from a combi-
nation of expected patterns of movement in share and deposit 
accounts and loans; and 
"(C) protracted adjustment credit available in the event 
of unusual or emergency circumstances of a longer term 
nature resulting from national, regional or local difficulties. 
"(2) 'Central Liquidity Facility' or 'Facility' means the 
National Credit Union Central Liquidity Facility; 
"(3) 'paid-in and unimpaired capital and surplus' means the 
balance of the paid-in share accounts and deposits as of a given 
date, less any loss that may have been incurred for which there 
is no reserve or which has not been charged against undivided 
earnings, plus the credit balance (or less the debit balance) of 
the undivided earnings account as of a given date, after all losses 
have been provided for and net earnings or net losses have been 
added thereto or deducted therefrom. Reserves shall not be con-
sidered as part of surplus, and 
"(4) 'member' means a Regular or an Agent member of the 
Facility. 
12 USC 1795a. 
92 STAT. 3720 
PUBLIC LAW 95-630—NOV. 10, 1978 
12 u s e 1795b. 
12 u s e 1795c. 
Rules and 
regulations. 
Stock 
subscriptions. 
Membership 
termination, 
hearing 
opportunity. 
" E S T A B L I S H M E N T o r T H E N A T I O N A L CREDIT U N I O N ADMINISTRATION 
CENTRAL LIQUIDITY FACILITY 
"SEC. 303. There is hereby created the National Credit Union Admin-
istration Central Liquidity Facility. The Central Liquidity Facility 
shall exist within the National Credit Union Administration and be 
managed by the Administrator. The United States district court 
shall have original jurisdiction over any case to which the Admin-
istrator on behalf of the Facility is a party, without regard to the 
amount in controversy. 
"MEMBERSHIP 
"SEC. 304. (a) A credit union primarily serving natural persons 
may be a Regular member of the Facility by subscribing to the capital 
stock of the Facility in an amount not less than one-half of 1 per 
centum of the credit union's paid-in and unimpaired capital and 
surplus. 
(b) A credit union or group of credit unions, primarily serving 
other credit unions, may be an Agent member of the Facility by— 
" (1) obtaining the approval of the Administrator; 
"(2) subscribing to the capital stock of the Facility in an 
amount not less than one-half of 1 per centum of the paid-in and 
unimpaired capital and surplus of all those credit unions which 
primarily serve natural persons, which are members of such credit 
union or of any credit union comprising such credit union group, 
and which are not regular members; 
" (3) agreeing to comply with rules and regulations the Admin-
istrator shall prescribe with respect to, but not limited to, man-
agement quality, asset and liability safety and soundness, internal 
operating and control practices and procedures, and participation 
of natural persons in the affairs or such credit union or credit 
union group; and 
"(4) agreeing to submit to the supervision of the Administra-
tor which shall include, but not be limited to, reporting require-
ments and periodic unrestricted examinations. 
"(c) Stock subscriptions provided for in subsections (a) and (b)(2) 
of this section shall be— 
"(1) based on an arithmetic average of paid-in capital and sur-
plus over the six months preceding application and membership; 
and 
"(2) adjusted at the close of each calendar year in accordance 
with an arithmetic average of paid-in capital and surplus over 
a period determined by the Administrator. 
"(d) An Agent member of the Facility shall perform for its mem-
ber credit unions those functions required by the Administrator to 
carry out this subchapter. 
"(e) (1) A member of the Facility whose capital stock subscription 
constitutes less than 5 per centum of such stock outstanding, may 
withdraw from membership in the Facility six months after notify-
ing the Administrator of its intention to do so. 
"(2) A member of the Facility whose capital stock subscription 
constitutes 5 per centum or more of such stock outstanding, may 
withdraw from membership in the Facility twenty-four months after 
notifying the Administrator of its intention to do so. 
"(3) The Administrator may terminate membership in the Facility 
if, after opportunity for a hearing, the Administrator determines a 
member has failed to comply with any provision of this subchapter or 
regulation issued pursuant thereto. 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3721 
''CAPITAL STOCK 
"SEC. 305. (a) As soon as practicable, the Administrator shall open Subscriptions, 
books for subscriptions to the capital stock of the Facility. The mini- 12 USC 1795d. 
mum subscription shall be $50. 
"(b) The capital stock of the Facility— 
"(1) shall be divided into shares having a par value of $50 
each; 
" (2) shall be paid for with cash or with securities of the United 
States or any Agency thereof in accordance with requirements the 
Administrator may impose; 
"(3) shall share in dividend distributions without preference 
and at rates to be determined by the Administrator; and 
"(4) shall not be transferred or hypothecated except as pro-
vided for herein. 
"(c) When circumstances require that all or a portion of a member's 
stock be redeemed by the Facility, the Administrator shall pay an 
amount equal to what the member originally paid for the stock less 
any amount owed by the member to the Facility. 
"(d) At least one-half of the payment for the subscription amount 
required for membership under section 304 of this subchapter shall 
be transferred to the Facility. The remainder may be held by the 
member on call of the Administrator and shall be invested in assets 
designated by the Administrator. 
"(e) A credit union or credit union group that becomes a member 
of the Facility later than six months after the date the Administrator 
opens books for capital stock subscriptions, may not borrow or receive 
advances from the Facility without approval by the Administrator for 
a period of six months after becoming a member. 
a 
EXTENSIONS Or CREDIT 
Application. 
12 USC 1795e. 
"SEC. 306. (a) (1) A member may apply for an extension of credit 
from the Facility to meet its liquidity needs. The Administrator shall 
approve or deny any such application within five working days after 
receiving it. The Administrator shall not approve an application for 
credit the intent of which is to expand credit union portfolios. 
"(2) The Administrator may advance funds to a member on terms 
and conditions prescribed by the Administrator after giving due con-
sideration to creditworthiness. 
"(3) The Administrator shall not advance funds for the benefit of 
a credit union whose share or deposit accounts are insured by a State 
share or deposit guaranty credit union, insurance corporation, or 
guaranty association, without consultation with the appropriate State 
share or deposit guaranty credit union, insurance corporation, or 
guaranty association. 
"(b) The Secretary of the Treasury is authorized to lend to the Certification. 
Facility up to $500,000,000, in the event the Administrator certifies 
to the Secretary that the Facility does not have sufficient funds to meet 
liquidity needs of credit unions. Any such loan shall bear an interest 
• 
rate not greater than one-eighth of 1 per centum above the current 
average market yield on outstanding obligations of the United States 
with remaining time to maturity comparable to the maturity of such 
loan. The authority of the Secretary to lend under this subsection 
shall be limited to such extent or in such amounts as are provided in 
advance in appropriation Acts. 
39-194 O—80—pt. 3 
69 : QL3 
92 STAT. 3722 
PUBLIC LAW 95-630—NOV. 10, 1978 
"POWERS OF THE ADMINISTRATOR 
12 use 1795f. 
"SEC. 307. The Administrator on behalf of the Facility shall have 
the ability to— 
"(1) prescribe the manner in which the general business of the 
Facility shall be conducted; 
Rules and 
;-* 
"(2) prescribe rules and regulations to carry out this sub-
regulations, 
chapter; 
;,; I 
" (3) determine the expenditures incurred by the Administration 
to carry out this subchapter, and the expenditures incurred by 
the Facility to carry out subchapters I and II of this chapter, and 
v.rr annually assess the Facility and the Administration accordingly; 
" (4) borrow from— 
,,;. 
" (A) any source, provided that the total face value of these 
obligations shall not exceed twelve times the subscribed capi-
r' iA(f>!' j tal stock and surplus of the Facility; and 
, J,' , 
"(B) the National Credit Union Share Insurance Fund up 
, ,: 
to $500,000 to defray initial organizational and operating 
expenses of the Facility at such rates and terms consistent 
uw. 
with prevailing market conditions; 
"(5) guarantee performance of the terms of any financial obli-
gation of a member but only when such obligation bears a clear 
^, and conspicuous notice on its face that only the resources of the 
Facility underlie such guarantee; 
"(6) purchase any asset from a member with the member's 
endorsement; 
"(7) invest in obligations of the United States or any agency 
thereof; 
"(8) make deposits in federally insured financial institutions 
and make investments in shares or deposits of credit unions; 
"(9) sue and be sued, complain, and defend, in any State or 
Federal court; 
r,.'!:, •••(' |'> , 
" (10) adopt a seal; 
.'"V": 'j-M s\ 
"(11) pursue to final disposition by way of compromise or 
otherwise claims both for and against the United States (other 
., 
than tort claims, claims involving administrative expenses, and 
claims in excess of $5,000 arising out of contracts for construction, 
repairs, and the purchase of supplies and materials) which are 
not in litigation and have not been referred to the Department of 
Justice; 
•^^j 
"(12) appoint officers and employees to assist in carrying out 
'i, 
this subchapter, who shall be appointed subject to the provisions 
,,,' 
of title 5, United States Code; 
'j4, 
"(13) conduct business, carry on operations, have offices, and 
„.^' 
exercise the powers granted by this subchapter in any State or 
territory; 
,! r:s-»;VittsO 
' 
"(1'^) lease, purchase, or otherwise acquire and own, hold, 
improve, use, or otherwise deal in and with property, real, per-
sonal, or mixed, or any interest therein, wherever situated; 
Contracts. 
"(15) enter into contracts with any public or private organiza-
tion, partnership, corporation, or individual, to the extent or in 
such amounts as are provided in advance in appropriation Acts; 
and 
"(16) advance funds on a fully secured basis to a State credit 
^^ 
union share or deposit insurance corporation, guaranty credit 
union, or guaranty asso*ation. Such advance shall not exceed 
twelve months in maturity, shall be relent at an interest rate not 
exceeding that imposed by the Facility, and shall not be renewable. 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3723 
a 
DEPOSITORIES, CUSTODIANS, AND riSCAIi AGENTS 
"SEC. 308. The Federal Keserve Banks are authorized to act as 12 USC 1795g. 
depositories, custodians and/or fiscal agents for the Central Liquidity 
Facility in the general performance of its powers conferred by this 
subchapter. Each Federal Reserve Bank when designated by the 
Administrator as fiscal agent for the Central Liquidity Facility, shall 
be entitled to be reimbursed for all expenses incurred as such fiscal 
agent. 
" A U D I T o r FINANCIAL TRANSACTIONS 
s 
"SEC. 309. The Comptroller General of the United States shall audit Rules and 
the Central Liquidity Facility under such rules and regulations as regulations, 
the Comptroller may prescribe. 
12 USC 1795h. 
a 
ANNUAL REPORT 
12 USC 1795i. 
"SEC. 310. The annual report required by section 102(e) shall include 
a full report of the activities of the Facility.". 
SEC. 1803. (a) Paragraph (6) of section 107 of the Federal Credit 
Union Act (12 U.S.C. 1757) is amended by inserting "from the Cen-
tral Liquidity Facility," after "prescribed,". 
(b) Paragraph (7) of such section is amended by striking the word 
"and" preceding "(H)", and adding at the end thereof the following: 
"and (J) in the capital stock of the National Credit Union Central 
Liquidity Facility;". 
(c) Paragraph (9) of such section is amended by inserting ", except 
as authorized by the Administrator in carrying out the provisions of 
subchapter III," after "exceeding". 
SEC. 1804. Section 709 of title 18 of the United States Code is 
amended by striking the fourth paragraph and inserting in lieu thereof 
the following new paragraph: 
"Whoever, other than a bona fide organization or association of False advertising. 
Federal or State credit unions or except as permitted by the laws of 
the United States, uses as a firm or business name or transacts business 
using the words 'National Credit Union', 'National Credit Union 
Administration', 'National Credit Union Board', 'National Credit 
u - . ,, 
Union Share Insurance Fund', 'Share Insurance', or 'Central Liquidity 
Facility', or the letters 'NCUA', 'NCUSIF', or 'CLF', or any other 
combination or variation of those words or letters alone or with other 
words or letters, or any device or symbol or other means, reasonably 
calculated to convey the false impression that such name or business 
has some connection with, or authorization from, the National Credit 
r- ; ,. 
j : 
Union Administration, the Government of the United States, or any 
agency thereof, which does not in fact exist, or falsely advertises or 
otherwise represents by any device whatsoever that his or its business, 
product, or service has been in any Avay endorsed, authorized, or 
approved by the National Credit Union Administration, the Govern-
ment of the United States, or any agency thereof, or falsely advertises 
or otherwise represents by any device whatsoever that his or its deposit 
liabilities, obligations, certificates, shares, or accounts are insured 
under the Federal Credit Union Act or by the United States or any 
instrumentality thereof, or being an insured credit union as defined 
in that Act falsely advertises or otherwise represents by any device 
whatsoever the extent to which or the manner in which share hold-
ings in such credit union are insured under such Act; or". 
92 STAT. 3724 
PUBLIC LAW 95-630—NOV. 10, 1978 
Effective date. 
12 use 1795 
note. 
Export-Import 
Bank Act 
Amendments of 
1978. 
Short title. 
12 use 635 note. 
12 use 635. 
SEC. 1805. Section 201 of the Government Corporation Control Act 
(31 U.S.C. 856) is amended— 
(1) by striking out "and" before " (8)"; and 
(2) by inserting before the period at the end thereof a comma 
and the following: "and (9) the National Credit Union Admin-
istration Central Liquidity Facility". 
SEC. 1806. This title shall take effect on October 1,1979. 
TITLE XIX—EXPORT-IMPORT BANK ACT 
AMENDMENTS 
SEC. 1901. That this title may be cited as the "Export-Import Bank 
Act Amendments of 1978". 
PRENOTIFICATION 
SEC. 1902. Section 2(b)(3) of the Export-Import Bank Act of 
1945 is amended— 
(1) by striking out "No" in the first sentence and inserting in 
lieu thereof "Except as provided by the fourth sentence of this 
paragraph, no"; 
(2) by striking out "$60,000,000" in the first sentence and 
inserting in lieu thereof "$100,000,000"; and 
(3) by adding at the end thereof the following: "If the Bank 
submits a statement to the Congress under this paragraph and 
either House of Congress is in an adjournment for a period which 
continues for at least ten days after the date of submission of 
the statement, then any such loan or guarantee or combination 
thereof may, subject to the second sentence of this paragraph, 
be finally approved by the Board of Directors upon the termi-
nation of the twenty-five-day period referred to in the first 
sentence of this paragraph or upon the termination of a thirty-
five-calendar-day period (which commences upon the date of sub-
mission of the statement), whichever occurs sooner.". 
FRACTIONAL CHARGES 
12 use 635. 
SEC. 1903. Section 2(c)(1) of the Export-Import Bank Act of 
1945 is amended by striking out "$20,000,000,000" and inserting in 
lieu thereof "$25,000,000,000". 
DENIAL or EXPORT APPLICATIONS 
12 use 635. 
SEC. 1904. Section 2(b)(1)(B) of the Export-Import Bank Act 
of 1945 is amended by striking out the remainder of the paragraph 
after "and employment in the United States," and inserting in lieu 
thereof "and shall give particular emphasis to the objective of 
strengthening the competitive position of United States exporters 
and thereby of expanding total United States exports. Only in cases 
where the President determines that such action would be in the 
national interest where such action would clearly and importantly 
advance United States policy in such areas as international terrorism, 
nuclear proliferation, environmental protection and human rights, 
should the Export-Import Bank deny applications for credit for 
nonfinancial or noncommercial considerations". 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3725 
AUTHORIZATION 
SEC. 1905. Section 7(a) of the Export-Import Bank Act of 1945 12 USC635e. 
is amended by striking out "$25,000,000,000" and inserting in lieu 
thereof "$40,000,000,000". 
EXTENSION o r AUTHORITY 
SEC. 1906. Section 8 of the Export-Import Bank Act of 1945 is 12 USC 635f. 
amended by striking out "December 31, 1978" and inserting in lieu 
tliereof "September 30, 1983". 
E N E R G Y POLICY 
SEC. 1907. (a) Section 2(b)(1) of the Export-Import Bank Act 12 USC 635. 
of 1945 is amended by adding at the end thereof the following: 
"(C) Consistent with the policy of section 501 of the Nuclear Non-
Proliferation Act of 1978 and section 119 of the Foreign Assistance ^nte, p. 148. 
Act of 1961, the Board of Directors shall name an oiRcer of the Bank 22 USC 2151q. 
whose duties shall include advising the President of the Bank on 
Avays of piomoting the expoit of goods and services to be used in the 
development, production, and distribution of nonnuclear renewable 
energy resources, disseminating information concerning export oppor-
tunities and the availability of Bank support for such activities, and 
acting as a liaison between the Bank and the Department of Commerce 
and other appropriate departments and agencies.". 
(b) Section 9(b) of such Act is amended by adding at the end 12 USC 635g. 
thereof the following: "In addition, the Bank shall include in the 
report a description of specific activities and programs undertaken by 
it to achieve the policy of section 501 of the Nuclear Non-Proliferation 
Act of 1978, and section 119 of the Foreign Assistance Act of 1961, 
as required by section 2(b) (1) (C) of this Act.". 
Supra. 
EXPORT CREDIT COMPETITION 
SEC. 1908. (a) The President is authorized and requested to begin Negotiations, 
negotiations at the ministerial level with other major exporting coun- 12 USC 635a-l. 
tries to end predatory export financing programs and other forms of 
export subsidies, including mixed ci-edits, in third country markets 
as well as within the United States. The President shall report to the Report to 
Congiess prior to January 15, 1979, on progress toward meeting the Congress, 
goals of this section. 
(b) The Export-Import Bank of the United States is authorized 
to provide guarantees, insurance, and extensions of credit at rates and 
terms and other conditions which are, in the opinion of the Board of 
, 
Directors of the Bank, competitive with those provided by the gov-
ernment-supported export credit instrumentalities of other nations. 
SEC. 1909. Section 2(b) of the Export-Import Bank Act of 1945 12 USC 635. 
is amended by inserting at the end thereof the following new 
paragraph: 
"(7) The Bank shall supplement but not compete with private 
capital and the programs of the Commodity Credit Corporation to 
ensure that adequate financing will be made available to assist the 
export of agricultural commodities, except that, consistent with section 
2(b) (1) (A^ of this Act, the Bank in assisting any such export transac-
tions shall, in cooperation with the export financing instrumentalities 
of other governments, seek to minimize competition in Government-
92 STAT. 3726 
PUBLIC LAW 95-630—NOV. 10, 1978 
12 use 635. 
Regulations. 
12 u s e 635a-
Inquiry. 
12 u s e 635a-3. 
t"it!f*t^H 
••'W 
Notification. 
:r.)?:J 
supported export financing, and shall, in cooperation with other 
appropriate United States Government agencies, seek to reach inter-
national agreements to reduce Government subsidized export financing. 
In order to carry out the purposes of this subsection, the Bank shall 
consult with the Secretary of Agriculture and where the Secretary 
of Agriculture has recommended against Bank financing of the 
export of a particular agricultural commodity, shall take such recom-
mendation into consideration in determining whether to provide 
credit or other assistance for any export sale of such commodity, and 
shall consider the importance of agricultural commodity exports to 
the United States export market and the nation's balance of trade 
in deciding whether or not to provide assistance under this subsec-
tion. The Bank shall include in the report to Congress under sec-
tion 9(a) of this Act a description of the measures undertaken by it 
pursuant to this subsection.". 
SEC. 1910. Section 2(b) (1) (A) of the Export-Import Bank Act of 
1945 is amended by striking the words "goods and related services" 
in the first sentence and inserting in lieu thereof "manufactured goods, 
agricultural products, and other goods and services". 
SEC. 1911. The Bank shall implement such regulations and proce-
dures as may be appropriate to insure that full consideration is given 
to the extent to which any loan or financial guarantee is likely to 
have an adverse effect on industries, including agriculture, and employ-
ment in the United States, either by reducing demand for goods 
produced in the United States or by increasing imports to the United 
States. To carry out the purposes of this subsection, the Bank shall 
request, and the United States International Trade Commission shall 
furnish, a report assessing the impact of the Bank's activities on 
industries and employment in the United States. Such report shall 
include an assessment of previous loans or financial guarantees and 
shall provide recommendations concerning general areas which may 
adversely affect domestic industries, including agriculture, and 
employment. 
SEC. 1912. (a) (1) Upon receipt of information that foreign sales 
to the United States are being offered involving foreign official export 
credits which exceed limits under existing standstills, minutes, or 
practices to which the United States and other major exporting coun-
tries have agreed, the Secretary of the Treasury shall immediately 
conduct an inquiry to determine whether "noncompetitive financing" 
is being offered. 
(2) If the Secretary determines that such foreign "noncompetitive" 
financing is being offered, he shall request the immediate withdrawal of 
such financing by the foreign official export credit agency involved. 
(3) If the offer is not withdrawn or if there is no immediate response 
to the withdrawal request, the Secretary of the Treasury shall notify 
the country offering such financing and all parties to the proposed 
transaction that the Eximbank may be authorized to provide compet-
ing United States sellers with financing to match that available 
through the foreign official export financing entity. 
(b) The Secretary of the Treasury shall only issue such authoriza-
tion to the Bank to provide guarantees, insurance and credits to com-
peting United States sellers, if he determines that: 
(1) the availability of foreign official noncompetitive financing 
is likely to be a determining factor in the sale, and 
(2) the foreign noncompetitive financing has not been with-
drawn on the date the Bank is authorized to provide competitive 
financing. 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3727 
(c) Upon receipt of authorization by the Secretary of the Treasury, 
the Export-Import Bank may provide financing to match that offered 
by the foreign official export credit entity: Provided, however., That 
loans, guarantees and insurance provided under this authority shall 
conform to all provisions of the Export-Import Bank Act of 1945, 
as amended. 
SEC. 1913. No environmental rule, regulation, or procedure shall 
become effective vidth regard to exports subject to the provisions of 
22 U.S.C. 3201 et seq., the Nuclear Non-Proliferation Act of 1978, 
until such time as the President has reported to Congress on the prog-
ress achieved pursuant to section 407 of the Act (42 U.S.C. 2153e) 
entitled "Protection of the Environment" which requires the Presi-
dent to seek to provide, in agreements required under the Act, for 
cooperation between the parties in protecting the environment from 
radioactive, chemical or thermal contaminations arising from peace-
ful nuclear activities. 
SEC. 1914. Section 7(a) of the Export-Import Bank Act of 1945 is 
amended by adding at the end thereof the following: "All spending 
authority provided under this Act shall be effective for any fiscal 
year only to such extent or in such amounts as are provided in appro-
priation Acts.". 
SEC. 1915. Section 2(b) of the Export-Import Bank Act of 1945 
(12 U.S.C. 635(b)) is amended by inserting at the end thereof the 
following new paragraph: 
"(8) In no event shall the Bank guarantee, insure, or extend credit 
or participate in the extension of credit (a) in support of any export 
which would contribute to enabling the Government of the Kepublfc 
of South Africa to maintain or enforce apartheid; (b) in support of 
any export to the Government of the Republic of South Africa or its 
agencies unless the President determines that significant progress 
toward the elimination of apartheid has been made and transmits to 
the Congress a statement describing and explaining that determina-
tion; or (c) in support of any export to other purchasers in the 
Republic of South Africa unless the United States Secretary of State 
certifies that the purchaser has endorsed and has proceeded toward 
the implementation of the following principles: nonsegregation of 
the races in all work facilities; equal and fair employment for all 
employees; equal pay for equal work for all employees; initiation and 
development of training programs to prepare nonwhite South Africans 
for supervisory, administrative, clerical, and technical jobs; increas-
ing the number of nonwhites in management and supervisory posi-
tions; a willingness to engage in collective bargaining with labor 
unions; and improving the quality of life for employees in such 
areas as housing, transportation, schooling, recreation, and health 
facilities.". 
SEC. 191*6. Section 2(b) (1) (B) of the Export-Import Bank Act of 
1945 is amended by inserting after "in matters affecting small busi-
ness concerns;" the following: "that the Bank should give emphasis 
to assisting new and small business entrants in the agricultural export 
market, and shall, in cooperation with other relevant Government 
agencies, including the Commodity Credit Corporation, develop a 
program of education to increase awareness of export opportunities 
among small agribusinesses and cooperatives;". 
SEC. 1917. This title shall take effect upon enactment. 
42 u s e 2153e-l. 
12 u s e 635e. 
Government of 
the Republic of 
South Africa 
support, 
extension of 
credit 
prohibition. 
Effective date. 
12 u s e 635 
note. 
Electronic Fund 
Transfer Act. 
15 use 1601 
note. 
15 use 1693. 
92 STAT. 3728 
PUBLIC LAW 95-630—NOV. 10, 1978 
TITLE XX—ELECTRONIC FUND TRANSFERS 
SEC. 2001. The Consumer Credit Protection Act (15 U.S.C. 1601 
et seq.) is amended by adding at the end thereof the following new 
title: 
"TITLE IX—ELECTRONIC FUND TRANSFERS 
"§ 901. Short title 
"This title may be cited as the 'Electronic Fund Transfer Act'. 
"§ 902. Findings and purpose 
" (a) The Congress finds that the use of electronic systems to transfer 
funds provides the potential for substantial benefits to consumers. 
However, due to the unique characteristics of such systems, the appli-
cation of existing consumer protection legislation is unclear, leaving 
the rights and liabilities of consumers, financial institutions, and inter-
mediaries in electronic fund transfers undefined. 
"(b) It is the purpose of this title to provide a basic framework 
establishing the rights, liabilities, and responsibilities of participants 
in electronic fund transfer systems. The primary objective of this title, 
however, is the provision of individual consumer rights. 
15 use 1693a. 
«§ 903. Definitions 
"As used in this title— 
"(1) the term 'accepted card or other means of access' means 
a card, code, or other means of access to a consumer's account 
for the purpose of initiating electronic fund transfers when the 
person to whom such card or other means of access was issued has 
requested and received or has signed or has used, or authorized 
another to use, such card or other means of access for the purpose 
of transferring money between accounts or obtaining money, prop-
erty, labor, or services; 
"(2) the term 'account' means a demand deposit, savings 
deposit, or other asset account (other than an occasional or inci-
dental credit balance in an open end credit plan as defined in 
section 103(i) of this Act), as described in regulations of the 
Board, established primarily for personal, family, or household 
purposes, but such term does not include an account held by a 
financial institution pursuant to a bona fide trust agreement; 
"(3) the term 'Board' means the Board of Governors of the 
Federal Reserve System; 
" (4) the term 'business day' means any day on which the offices 
of the consumer's financial institution involved in an electronic 
fund transfer are open to the public for carrying on substantially 
all of its business functions; 
" (5) the term 'consumer' means a natural person; 
"(6) the term 'electronic fund transfer' means any transfer 
of funds, other than a transaction originated by check, draft, or 
similar paper instrument, which is initiated through an electronic 
terminal, telephonic instrument, or computer or magnetic tape so 
as to order, instruct, or authorize a financial institution to debit 
or credit an account. Such term includes, but is not limited to, 
point-of-sale transfers, automated teller machine transactions, 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3729 
direct deposits or withdrawals of funds, and transfers initiated 
; 
by telephone. Such term does not include— 
"(A) any check guarantee or authorization service which 
does not directly result in a debit or credit to a consumer's 
account: 
"(B) any transfer of funds, other than those processed by 
automated clearinghouse, made by a financial institution on 
behalf of a consumer by means of a service that transfers 
funds held at either Federal Keserve banks or other depository 
institutions and which is not designed primarily to transfer 
funds on behalf of a consumer; 
"(C) any transaction the primary purpose of which is the 
purchase or sale of securities or commodities through a 
broker-dealer registered with or regulated by the Securities 
and Exchange Commission; 
"(D) any automatic transfer from a savings account to 
a demand deposit account pursuant to an agreement between 
a consumer and a financial institution for the purpose of 
covering an overdraft or maintaining an agreed upon min-
imum balance in the consumer's demand deposit account; or 
"(E) any transfer of funds which is initiated by a tele-
phone conversation between a consumer and an officer or 
employee of a financial institution which is not pursuant to 
a prearranged plan and under which periodic or recurring 
transfers are not contemplated; 
as determined under regulations of the Board; 
"(7) the term 'electronic terminal' means an electronic device, 
other than a telephone operated by a consumer, through which 
a consumer may initiate an electronic fund transfer. Such term 
includes, but is not limited to, point-of-sale terminals, automated 
teller machines, and cash dispensing machines; 
"(8) the term 'financial institution' means a State or National 
bank, a State or Federal savings and loan association, a mutual 
savings bank, a State or Federal credit union, or any other person 
who, directly or indirectly, holds an account belonging to a 
consumer ; 
"(9) the term 'preauthorized electronic fund transfer' means an 
electronic fund transfer authorized in advance to recur at sub-
stantially regular intervals; 
"(10) the term 'State' means any State, territory, or possession 
of the United States, the District of Columbia, the Commonwealth 
of Puerto Rico, or any political subdivision of any of the fore-
going ; and 
" (11) the term 'unauthorized electronic fund transfer' means an 
electronic fund transfer from a consumer's account initiated by 
a person other than the consumer without actual authority to 
initiate such transfer and from which the consumer receives no 
benefit, but the term does not include any electronic fund transfer 
(A) initiated by a person other than the consumer who was 
furnished with the card, code, or other means of access to such 
consumer's account by such consumer, unless the consumer has 
notified the financial institution involved that transfers by such 
other person are no longer authorized, (B) initiated with fraudu-
lent intent by the consumer or any person acting in concert with 
the consumer, or (C) which constitutes an error committed by a 
financial institution. 
92 STAT. 3730 
PUBLIC LAW 95-630—NOV. 10, 1978 
15 use 1693b. 
«§ 904. Regulations 
-'i ':^-. ?u^fuyibiT':yr j^, aih 
" (a) The Board shall prescribe regulations to carry out the purposes 
of this title. In prescribing such regulations, the Board shall: 
"(1) consult with the other agencies referred to in section 917 
and take into account, and allow for, the continuing evolution of 
' 
electronic banking services and the technology utilized in such 
" 
services, 
"(2) prepare an analysis of economic impact which considers 
the costs and benefits to financial institutions, consumers, and other 
• 
users of electronic fund ti-ansfers, including the extent to which 
additional documentation, reports, records, or other paper work 
would be required, and the effects upon competition in the pro-
'' 
vision of electronic banking services among large and small 
''"•' 
financial institutions and the availability of such services to 
different classes of consumers, particularly low income consumers, 
" (3) to the extent practicable, the Board shall demonstrate that 
' 
the consumer protections of the proposed regulations outweij^h 
• 
the compliance costs imposed upon consumers and financial 
institutions, and 
' 
"(4) any proposed regulations and accompanying analyses 
shall be sent promptly to Congress by the Board. 
"(b) The Board shall issue model clauses for optional use by 
financial institutions to facilitate compliance with the disclosure 
requirements of section 905 and to aid consumers in understanding the 
rights and responsibilities of participants in electronic fund transfers 
Notice in Federal by utilizing readily understandable language. Such model clauses 
Register. 
shall be adopted after notice duly given in the Federal Register and 
opportunity for public comment in accordance with section 553 of 
title 5, United States Code. With respect to the disclosures required 
by section 905(a) (3) and (4), the Board shall take account of 
variations in the services and charges under different electronic fund 
transfer systems and, as appropriate, shall issue alternative model 
clauses for disclosure of these differing account terms. 
"(c) Regulations prescribed hereunder may contain such classifi-
cations, differentiations, or other provisions, and may provide for such 
adjustments and exceptions for any class of electronic fund transfers, 
as in the judgment of the Board are necessary or proper to effectuate 
the purposes of this title, to prevent circumvention or evasion thereof, 
or to facilitate compliance therewith. The Board shall by regulation 
modify the requirements imposed by this title on small financial 
institutions if the Board determines that such modifications are nec-
essary to alleviate any undue compliance burden on small financial 
institutions and such modifications are consistent with the purpose 
'- and objective of this title. 
"(d) In the event that electronic fund transfer services are made 
• available to consumers by a person other than a financial institution 
holding a consumer's account, the Board shall by regulation assure 
that the disclosures, protections, responsibilities, and remedies cre-
ated by this title are made applicable to such persons and services. 
15 use 1693c. 
"§ 905. Terms and conditions of transfers 
" (a) The terms and conditions of electronic fund transfers involving 
a consumer's account shall be disclosed at the time the consumer 
contracts for an electronic fund transfer service, in accordance with 
regulations of the Board. Such disclosures shall be in readily under-
standable language and shall include, to the extent applicable— 
"(1) the consumer's liability for unauthorized electronic fund 
transfers and, at the financial institution's option, notice of the 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3731 
advisability of prompt reporting of any loss, theft, or unau-
thorized use of a card, code, or other means of access; 
" (2) the telephone number and address of the person or office 
to be notified in the event the consumer believes than an unau-
thorized electronic fund transfer has been or may be effected; 
" (3) the type and nature of electronic fund transfers which the 
consumer may initiate, including any limitations on the fre-
quency or dollar amount of such transiers, except that the details 
of such limitations need not be disclosed if their confidentiality is 
necessary to maintain the security of an electronic fund transfer 
system, as determined by the Board; 
"(4) any charges for electronic fund transfers or for the right 
to make such transfers; 
"(5) the consumer's right to stop payment of a preauthorized 
electronic fund transfer and the procedure to initiate such a stop 
payment order; 
" (6) the consumer's right to receive documentation of electronic 
fund transfers under section 906; 
"(7) a summary, in a form prescribed by regulations of the 
Board, of the error resolution provisions of section 908 and the 
consumer's rights thereunder. The financial institution shall there-
after transmit such summary at least once per calendar year; 
"(8) the financial institution's liability to the consumer under 
section 910; and 
"(9) under what circumstances the financial institution will in 
the ordinary course of business disclose information concerning 
the consumer's account to third persons. 
"(b) A financial institution shall notify a consumer in writing at Notification, 
least twenty-one days prior to the effective date of any change in any 
term or condition of the consumer's account required to be disclosed 
under subsection (a) if such change would result in greater cost or 
liability for such consumer or decreased access to the consumer's 
account. A financial institution may, however, implement a change 
in the terms or conditions of an account without prior notice when 
such change is immediately necessary to maintain or restore the secur-
ity of an electronic fund transfer system or a consumer's account. 
Subject to subsection (a)(3), the Board shall require subsequent 
notification if such a change is made permanent. 
"(c) For any account of a consumer made accessible to electronic 
fund transfers prior to the effective date of this title, the information 
required to be disclosed to the consumer under subsection (a) shall be 
disclosed not later than the earlier of— 
"(1) the first periodic statement required by section 906(c) 
, 
after the effective date of this title; or 
''' 
"(2) thirty days after the effective date of this title. 
"§ 906. Documentation of transfers; periodic statements 
15 USC 1693d. 
"(a) For each electronic fund transfer initiated by a consumer from 
an electronic terminal, the financial institution holding such consum-
er's account shall, directly or indirectly, at the time the transfer is 
initiated, make available to the consumer written documentation of 
such transfer. The documentation shall clearly set forth to the extent 
applicable— 
"(1) the amount involved and date the transfer is initiated; 
" (2) the type of transfer; 
"(3) the identity of the consumer's account with the financial 
institution from which or to which funds are transferred; 
92 STAT. 3732 
PUBLIC LAW 95-630—NOV. 10, 1978 
"(4) the identity of any third party to whom or from whom 
funds are transferred; and 
"(5) the location or identification of the electronic terminal 
involved. 
"(b) For a consumer's account which is scheduled to be credited 
by a preauthorized electronic fund transfer from the same payor at 
least once in each successive sixty-day period, except where the payor 
provides positive notice of the transfer to the consumer, the financial 
institution shall elect to provide promptly either positive notice to 
the consumer when the credit is made as scheduled, or negative notice 
to the consumer when the credit is not made as scheduled, in accord-
ance with regulations of the Board. The means of notice elected shall 
be disclosed to the consumer in accordance with section 905. 
"(c) A financial institution shall provide each consumer with a 
periodic statement for each account of such consumer that may be 
accessed by means of an electronic fund transfer. Except as provided 
in subsections (d) and (e), such statement shall be provided at least 
monthly for each monthly or shorter cycle in which an electronic 
fund transfer affecting the account has occurred, or every three 
months, whichever is more frequent. The statement, which may include 
information regarding transactions other than electronic fund trans-
fers, shall clearly set forth— 
"(1) with regard to each electronic fund transfer during the 
period, the information described in subsection (a), which may 
be provided on an accompanying document; 
"(2) the amount of any fee or charge assessed by the financial 
institution during the period for electronic fund transfers or for 
account maintenance; 
"(3) the balances in the consumer's account at the beginning 
of the period and at the close of the period; and 
"(4) the address and telephone number to be used by the 
financial institution for the purpose of receiving any statement 
inquiry or notice of account error from the consumer. Such address 
and telephone number shall be preceded by the caption 'Direct 
Inquiries To:' or other similar language indicating that the 
address and number are to be used for such inquiries or notices. 
"(d) In the case of a consumer's passbook account which may not 
be accessed by electronic fund transfers other than preauthorized 
electronic fund transfers crediting the account, a financial institution 
may, in lieu of complying with the requirements of subsection (c), 
upon presentation of the passbook provide the consumer in writing 
with the amount and date of each such transfer involving the account 
since the passbook was last presented. 
"(e) In the case of a consumer's account, other than a passbook 
account, which may not be accessed by electronic fund transfers other 
than preauthorized electronic fund transfers crediting the account, 
the financial institution may provide a periodic statement on a quar-
terly basis which otherwise complies with the requirements of sub-
section (c). 
"(f) In any action involving a consumer, any documentation 
required by this section to be given to the consumer which indicates 
that an electronic fund transfer was made to another person shall be 
admissible as evidence of such transfer and shall constitute prima 
facie proof that such transfer was made. 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3733 
"§ 907. Preauthorized transfers 
15 USC I693e. 
"(a) A preauthorized electronic fund transfer from a consumer's 
account may be authorized by the consumer only in writing, and a 
copy of such authorization shall be provided to the consumer when 
made. A consumer may stop payment of a preauthorized electronic 
f 
imd transfer by notifying the financial institution orally or in writing 
at any time up to three business days preceding the scheduled date of 
such transfer. The financial institution may require written con-
firmation to be provided to it within fourteen days of an oral notifica-
tion if, when the oral notification is made, the consumer is advised 
of such requirement and the address to which such confirmation 
should be sent. 
"(b) In the case of preauthorized transfers from a consumer's 
account to the same person which may vary in amount, the financial 
institution or designated payee shall, prior to each transfer, provide 
reasonable advance notice to the consumer, in accordance with regu-
lations of the Board, of the amount to be transferred and the sched-
uled date of the transfer. 
"§ 908. Error resolution 
15 USC I693f. 
"(a) If a financial institution, within sixty days after having trans-
mitted to a consumer documentation pursuant to section 906 (a), (c), 
or (d) or notification pursuant to section 906(b), receives oral or 
written notice in which the consumer— 
"(1) sets forth or otherwise enables the financial institution to 
identify the name and account number of the consumer; 
" (2) indicates the consumer's belief that the documentation, or, 
in the case of notification pursuant to section 9106 (b), the con-
sumer's account, contains an error and the amount of such error; 
and 
"(3) sets forth the reasons for the consumer's belief (where 
applicable) that an error has occurred, 
the financial institution shall investigate the alleged error, determine 
whether an error has occurred, and report or mail the results of such 
investigation and determination to the consumer within ten business 
days. The financial institution may require written confirmation to be 
provided to it within ten business days of an oral notification of error 
if, when the oral notification is made, the consumer is advised of 
such requirement and the address to which such confirmation should 
be sent. A financial institution which requires written confirmation 
in accordance with the previous sentence need not provisionally 
recredit a consumer's account in accordance with subsection (c), nor 
shall the financial institution be liable under subsection (e) if the 
written confirmation is not received within the ten-day period referred 
to in the previous sentence. 
"(b) If the financial institution determines that an error did occur, 
it shall promptly, but in no event more than one business day after 
such determination, correct the error, subject to section 909, including 
the crediting of interest where applicable. 
"(c) If a financial institution receives notice of an error in the Investigation, 
manner and within the time period specified in subsection (a), it may, 
in lieu of the requirements of subsections (a) and (b), within ten 
business days after receiving such notice provisionally recredit the 
consumer's account for the amount alleged to be in error, subject to 
section 909, including interest where applicable, pending the conclu-
sion of its investigation and its determination of whether an error 
has occurred. Such investigation shall be concluded not later than 
92 STAT. 3734 
PUBLIC LAW 95-630—NOV. 10, 1978 
"»• ^ 
forty-tive days after receipt of notice of the error. During the pend-
ency of the investigation, the consumer shall have full use of the funds 
provisionally recredited. 
"(d) If the financial institution determines after its investigation 
pursuant to subsection (a) or (c) that an error did not occur, it shall 
deliver or mail to the consumer an explanation of its findings within 
3 business days after the conclusion of its investigation, and upon 
request of the consumer promptly deliver or mail to the consumer 
reproductions of all documents which the financial institution relied 
on to conclude that such error did not occur. The financial institution 
shall include notice of the right to request reproductions with the 
explanation of its findings. 
" (e) If in any action under section 915, the court finds that— 
"(1) the financial institution did not provisionally recredit a 
consumer's account within the ten-day period specified in sub-
section (c), and the financial institution (A) did not make a good 
faith investigation of the alleged error, or (B) did not have a 
reasonable basis for believing that the consumer's account was 
, .. ' . , . 
not in error; or 
" (2) the financial institution knowingly and willfully concluded 
that the consumer's account was not in error when such conclu-
sion could not reasonably have been drawn from the evidence 
available to the financial institution at the time of its investigation, 
then the consumer shall be entitled to treble damages determined 
under section 915(a) (1). 
"(f) For the purpose of this section, an error consists of— 
"(1) an unauthorized electronic fund transfer; 
"(2) an incorrect electronic fund transfer from or to the con-
sumer's account; 
"(3) the omission from a periodic statement of an electronic 
fund transfer affecting the consumer's account which should have 
been included; 
"(4) a computational error by the financial institution; 
"(5) the consumer's receipt of an incorrect amount of money 
from an electronic terminal; 
"(6) a consumer's request for additional information or clari-
fication concerning an electronic fund transfer or any documenta-
tion required by this title; or 
" (7) any other error described in regulations of the Board. 
15 use I693g. 
"§ 909. Consumer liability for unauthorized transfers 
"(a) A consumer shall be liable for any unauthorized electronic 
fund transfer involving the account of such consumer only if the card 
or other means of access utilized for such transfer was an accepted 
card or other meanas of access and if the issuer of such card, code, 
or other means of access has provided a means whereby the user of 
such card, code, or other means of access can be identified as the 
gerson authorized to use it, such as by signature, photograph, or 
ngerprint or by electronic or mechanical confirmation. In no event, 
however, shall a consumer's liability for an unauthorized transfer 
exceed the lesser of— 
"(l)$50;or 
"(2) the amount of money or value of property or services 
obtained in such unauthorized electronic fund transfer prior to 
the time the financial institution is notified of, or otherwise 
becomes aware of, circumstances which lead to the reasonable 
iiiii_ belief that an unauthorized electronic fund transfer involving the 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3735 
consumer's account has been or may be effected. Notice under this 
paragraph is sufficient when such steps have been taken as may be 
reasonably recjuired in the ordinary course of business to provide 
the financial institution with the pertinent information, whether 
or not any particular officer, employee, or agent of the financial 
institution does in fact receive such information. 
Notwithstanding the foregoing, reimbursement need not be made to 
the consumer for losses the financial institution establishes would 
not have occurred but for the failure of the consumer to report within 
sixty days of transmittal of the statement (or in extenuating circum-
stances such as extended travel or hospitalization, within a reasonable 
'time under the circumstances) any unauthorized electronic fund 
transfer or account error which appears on the periodic statement 
provided to the consumer under section 906. In addition, reimburse-
ment need not be made to the consumer for losses which the financial 
institution establishes would not have occurred but for the failure of 
the consumer to report any loss or theft of a card or other means of 
access within two business days after the consumer learns of the loss 
or theft (or in extenuating circumstances such as extended travel or 
hospitalization, within a longer period which is reasonable under the 
circumstances), but the consumer's liability under this subsection in 
any such case may not exceed a total of $500, or the amount of unau-
thorized electronic fund transfers which occur following the close of 
two business days (or such longer period) after the consumer learns 
of the loss or theft but prior to notice to the financial institution under 
this subsection, whichevei- is less. 
"(b) In any action which involves a consumer's liability for an 
unauthorized electronic fund transfer, the burden of proof is upon the 
financial institution to show that the electronic fund transfer was 
authorized or, if the electronic fund transfer was unauthorized, then 
the burden of proof is upon the financial institution to establish that 
the conditions of liability set forth in subsection (a) have been met, 
.gC'd' -c I 5 
and, if the transfer was initiated after the effective date of section 905, 
that the disclosures required to be made to the consumer under section 
905(a) (1) and (2) were in fact made in accordance with such section. 
"(c) In the event of a transaction which involves both an unau-
thorized electronic fund transfer and an extension of credit as defined 
in section 103(e) of this Act pursuant to an agreement between the 15 USC 1602. 
consumer and the financial institution to extend such credit to the 
consumer in the event the consumer's account is overdrawn, the limita-
tion on the consumer's liability for such transaction shall be deter-
mined solely in accordance with this section. 
"(d) Nothing in this section imposes liability upon a consumer for 
an unauthorized electronic fund transfer in excess of his liability for 
such a transfer under other applicable law or under any agreement 
with the consumer's financial institution. 
" (e) Except as provided in this section, a consumer incurs no liabil-
ity from an unauthorized electronic fund transfer. 
"§ 910. Liability of financial institutions 
15 USC I693h. 
"(a) Subject to subsections (b) and (c), a financial institution 
shall be liable to a consumer for all damages proximately caused by— 
"(1) the financial institution's failure to make an electronic 
fund transfer, in accordance with the terms and conditions of an 
account, in the correct amount or in a timely manner when 
properly instructed to do so by the consumer, except where— 
"(A) the consumer's account has insufficient funds; 
92 STAT. 3736 
PUBLIC LAW 95-630—NOV. 10, 1978 
I ^' 
" (B) the funds are subject to legal process or other encum-
brance restricting such transfer; 
"(C) such transfer would exceed an established credit 
limit; 
"(D) an electronic terminal has insufficient cash to com-
plete the transaction; or 
"(E) as otherwise provided in regulations of the Board; 
"(2) the financial institution's failure to make an electronic 
fund transfer due to insufficient funds when the financal institu-
tion failed to credit, in accordance with the terms and conditions 
of an account, a deposit of funds to the consumer's account which 
would have provided sufficient funds to make the transfer, and 
"(3) the financial institution's failure to stop payment of a pre-
authorized transfer from a consumer's account when instructed to 
do so in accordance with the terms and conditions of the account. 
"(b) A financial institution shall not be liable under subsection 
(a) (1) or (2) if the financial institution shows by a preponderance 
of the evidence that its action or failure to act resulted from— 
"(1) an act of God or other circumstance beyond its control, 
that it exercised reasonable care to prevent such an occurrence, 
and that it exercised such diligence as the circumstances required; 
or 
" (2) a technical malfunction which was known to the consumer 
at the time he attempted to initiate an electronic fund transfer or, 
in the case of a preauthorized transfer, at the time such transfer 
should have occurred. 
"(c) In the case of a failure described in subsection (a) which was 
not intentional and which resulted from a bona fide error, notwith-
standing the maintenance of procedures reasonably adapted to avoid 
any such error, the financial institution shall be liable for actual 
damages proved. 
15 use 16931. 
«§ 911. Issuance of cards or other means of access 
"(a) No person may issue to a consumer any card, code, or other 
means of access to such consumer's account for the purpose of initiat-
ing an electronic fund transfer other than— 
"(1) in response to a request or application therefor; or 
"(2) as a renewal of, or in substitution for, an accepted card, 
code, or other means of access, whether issued by the initial issuer 
or a successor. 
"(b) Notwithstanding the provisions of subsection (a), a person 
may distribute to a consumer on an unsolicited basis a card, code, or 
other means of access for use. in initiating an electronic fund transfer 
from such consumer's account, if— 
"(1) such card, code, or other means of access is not validated; 
"(2) such distribution is accompanied by a complete disclosure, 
in accordance with section 905, of the consumer's rights and lia-
bilities which will apply if such card, code, or other means of 
access is validated; 
• ' 
' 
"(3) such distribution is accompanied by a clear explanation, 
in accordance with regulations of the Board, that such card, code, 
or other means of access is not validated and how the consumer 
may dispose of such code, card, or other means of access if 
validation is not desired; and 
"(4) such card, code, or other means of access is validated only 
in response to a request or application from the consumer, upon 
verification of the consumer's identity. 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3737 
"(c) For the purpose of subsection (b), a card, code, or other means 
of access is validated when it may be used to initiate an electronic 
fund transfer. 
"§ 912. Suspension of obligations 
"If a system malfunction prevents the effectuation of an electronic 
fund transfer initiated by a consumer to another person, and such 
other person has agreed to accept payment by such means, the con-
sumer's obligation to the other person shall be suspended until the 
malfunction is corrected and the electronic fund transfer may be com-
pleted, unless such other person has subsequently, by written request, 
demanded payment by means other than an electronic fund transfer. 
"§ 913. Compulsory use of electronic fund transfers 
"No person may— 
"(1) condition the extension of credit to a consumer on such 
consumer's repayment by means of preauthorized electronic fund 
transfers; or 
"(2) require a consumer to establish an account for receipt of 
electronic fund transfers with a particular financial institution as 
a condition of employment or receipt of a government benefit. 
"§ 914. Waiver of rights 
"No writing or other agreement between a consumer and any other 
peison may contain any provision which constitutes a waiver of any 
right conferred or cause of action created by this title. Nothing in this 
section prohibits, however, any writing or other agreement which 
grants to a consumer a more extensive right or remedy or greater 
protection than contained in this title or a waiver given in settlement 
of a dispute or action. 
"§915. Civil liability 
"(a) Except as otherwise provided by this section ana section 910, 
any person who fails to comply with any provision of this title with 
respect to any consumer, except for an error resolved in accordance 
with section 908, is liable to such consumer in an amount equal to the 
sum of— 
"(1) any actual damage sustained by such consumer as a result 
of such failure; 
"(2) (A) in the case of an individual action, an amount not 
less than $100 nor greater than $1,000; or 
"(B) in the case of a class action, such amount as the court 
may allow, except that (i) as to each member of the class no 
minimum recovery shall be applicable, and (ii) the total recovery 
under this subparagraph in any class action or series of class 
f 
actions arising out of the same failure to comply by the same 
person shall not be more than the lesser of $500,000 or 1 per 
centum of the net worth of the defendant; and 
" (3) in the case of any successful action to enforce the foregoing 
liability, the costs of the action, together with a reasonable 
attorney's fee as determined by the court. 
"(b) In determining the amount of liability in any action under 
subsection (a), the court shall consider, among other relevant factors— 
"(1) in any individual action under subsection (a) (2) (A), the 
frequency and persistence of noncompliance, the nature of such 
noncompliance, and the extent to which the noncompliance was 
intentional; or 
15 use 1693J. 
15 use 1693k. 
15 use 1693/. 
15 use 1693in. 
39-194 O—80—pt. 3 
70 : QL3 
92 STAT. 3738 
PUBLIC LAW 95-630—NOV. 10, 1978 
'-U 38: 
.wfit'dl 
15 u s e 1693n. 
' 
"(2) in any class action under subsection (a) (2) (B), the fre-
quency and persistence of noncompliance, the nature of such 
noncompliance, the resources of the defendant, the number of per-
sons adversely affected, and the extent to which the noncompliance 
was intentional. 
"(c) Except as provided in section 910, a person may not be held 
liable in any action brought under this section for a violation of this 
title if the person shows by a preponderance of evidence that the viola-
tion was not intentional and resulted from a bona fide error notwith-
standing the maintenance of procedures reasonably adapted to avoid 
any such error. 
"(d) No provision of this section or section 916 imposing any 
liability shall apply to— 
(1) any act done or omitted in good faith in conformity with 
any rule, regulation, or interpretation thereof by the Board or in 
conformity with any interpretation or approval by an official 
or employee of the Federal Reserve System duly authorized by the 
Board to issue such interpretations or approvals under such pro-
cedures as the Board may prescribe therefor; or 
" (2) any failure to make disclosure in proper form if a financial 
institution utilized an appropriate model clause issued by the 
Board, 
notwithstanding that after such act, omission, or failure has occurred, 
such rule, regulation, approval, or model clause is amended, rescinded, 
or determined by judicial or other authority to be invalid for any 
reason. 
"(e) A person has no liability under this section for any failure 
to comply with any requirement under this title if, prior to the institu-
tion of an action under this section, the person notifies the consumer 
concerned of the failure, complies with the requirements of this title, 
and makes an appropriate adjustment to the consumer's account and 
pays actual damages or, where applicable, damages in accordance with 
section 910. 
"(f) On a finding by the court that an unsuccessful action under 
this section was brought in bad faith or for purposes of harassment, 
the court shall award to the defendant attorney's fees reasonable in 
relation to the work expended and costs. 
"(g) Without regard to the amount in controversy, any action 
under this section may be brought in any United States district 
court, or in any other court of competent jurisdiction, within one 
year from the date of the occurrence of the violation. 
"§ 916. Criminal liability 
^ .^ 
s 
" (a) Whoever knowingly and willfully— 
"(1) gives false or inaccurate information or fails to provide 
,,, information which he is required to disclose by this title or any 
regulation issued thereunder; or 
"(2) otherwise fails to comply with any provision of this title; 
shall be fined not more than $5,000 or imprisoned not more than one 
year, or both. 
"(b) Whoever— 
"(1) knowingly, in a transaction affecting interstate or foreign 
commerce,^ uses or attempts or conspires to use any counterfeit, 
fictitious, altered, forged, lost, stolen, or fraudulently obtained 
,
;
.
^
^ debit instrument to obtain money, goods, services, or anything else 
of value which within any one-year period has a value aggre-
gating $1,000 or more; or 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3739 
V
M f « (2) with unlawful or fraudulent intent, transports or attempts 
or conspires to transport in interstate or foreign commerce a 
counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently 
obtained debit instrument knowing the same to be counterfeit, 
fictitious, altered, forged, lost, stolen, or fraudulently obtained; 
or 
"(3) with unlawful or fraudulent intent, uses any instrumen-
tality of interstate or foreign commerce to sell or transport a 
counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently 
obtained debit instrument knowing the same to be counterfeit, 
fictitious, altered, forged, lost, stolen, or fraudulently obtained; 
or 
"(4) knowingly receives, conceals, uses, or transports money, 
goods, services, or anything else of value (except tickets for inter-
state or foreign transportation) which (A) within any one-year 
period has a value aggregating $1,000 or more, (B) has moved in 
or is part of, or which constitutes interstate or foreign commerce, 
and (C) has been obtained with a counterfeit, fictitious, altered, 
forged, lost, stolen, or fraudulently obtained debit instrument; or 
"(5) knowingly receives, conceals, uses, sells, or transports in 
interstate or foreign commerce one or more tickets for interstate 
or foreign transportation, which (A) within any one-year period 
have a value aggregating $500 or more, and (B) have been pur-
chased or obtained with one or more counterfeit, fictitious, 
altered, forged, lost, stolen, or fraudulently obtained debit instru-
ment ; or 
"(6) in a transaction affecting interstate or foreign commerce, 
furnishes money, property, services, or anything else of value, 
which within any one-year period has a value aggregating $1,000 
or more, through the use of any counterfeit, fictitious, altered, 
forged, lost, stolen, or fraudulently obtained debit instrument 
knowing the same to be counterfeit, fictitious, altered, forged, 
lost, stolen, or fraudulently obtained— 
shall be fined not more than $10,000 or imprisoned not more than 
ten years, or both. 
"(c) As used in this section, the term 'debit instrument' means a 
card, code, or other device, other than a check, draft, or similar paper 
instrument, by the use of which a person may initiate an electronic 
fund transfer. 
"Debit 
instrument.' 
15 use 1693o. 
"§ 917. Administrative enforcement 
"(a) Compliance with the requirements imposed under this title 
shall be enforced under— 
"(1) section 8 of the Federal Deposit Insurance Act, in the 12 USC 1818. 
case of— 
=
- 
" (A) national banks, by the Comptroller of the Currency; 
"(B) member banks of the Federal Reserve System 
(other than national banks), by the Board; 
"(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 
i 
Insurance Corporation; 
"(2) section 5(d) of the Home Owners' Loan Act of 1933, sec-
tion 407 of the National Housing Act, and sections 6(i) and 17 of 
the Federal Home Loan Bank Act, by the Federal Home Loan 
Bank Board (acting directly or through the Federal Savings 
12 USC 1464. 
12 USC 1730. 
12 USC 1426, 
1437. 
92 STAT. 3740 
PUBLIC LAW 95-630—NOV. 10, 1978 
and Loan Insurance Corporation), in the case of any institution 
subject to any of those provisions; 
12 use 1751. 
"(3) the Federal Credit Union Act, by the Administrator of 
the National Credit Union Administration with respect to any 
Federal credit union. 
49 use 1301 
"(4) the Federal Aviation Act of 1958, by the Civil Aero-
°°*®- 
nautics Board, with respect to any air carrier or foreign air 
carrier subject to that Act; and 
15 use 78a. 
"(5) the Securities Exchange Act of 1934, by the Securities 
and Exchange Commission, with respect to any broker or dealer 
subject to that Act. 
"(b) For the purpose of the exercise by any agency referred to in 
subsection (a) of its powers under any Act referred to in that subsec-
tion, a violation of any requirement imposed under this title shall be 
deemed to be a violation of a requirement imposed under that Act. 
In addition to its powers under any provision of law specifically 
referred to in subsection (a), 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. 
"(c) Except to the extent that enforcement of the requirements 
imposed under this title is specifically committed to some other Gov-
ernment agency under subsection (a), the Federal Trade Commission 
shall enforce such requirements. For the purpose of the exercise by 
the Federal Trade Commission of its functions and powers under the 
Federal Trade Commission Act, a violation of any requirement 
imposed under this title shall be deemed a violation of a requirement 
imposed under that Act. All of the functions and powers of the 
Federal Trade Commission under the Federal Trade Commission 
Act are available to the Commission to enforce compliance by any 
person subject to the jurisdiction of the Commission with the require-
ments imposed under this title, irrespective of whether that person 
is engaged in commerce or meets any other jurisdictional tests in the 
15 use 41 e
« 56^. Federal Trade Commission Act. 
15 use I693p. 
«§ 918. Reports to Congress 
"(a) Not later than twelve months after the effective date of this 
title and at one-year intervals thereafter, the Board and the Attorney 
General shall, respectively, make reports to the Congress concerning 
the administration of their functions under this title, including such 
recommendations as the Board and the Attorney General, respectively, 
deem necessary or appropriate. In addition, each report of the Board 
shall include its assessment of the extent to which compliance with this 
title is being achieved, and a summary of the enforcement actions 
taken under section 917 of this title. In such report, the Board shall 
particularly address the effects of this title on the costs and benefits 
to financial institutions and consumers, on competition, on the intro-
duction of new technology, on the operations of financial institutions, 
and on the adequacy of consumer protection. The report of the Attor-
ney General shall also contain an analysis of the impact of this title 
on the operation, workload, and efficiency of the Federal courts. 
"(b) In the exercise of its functions under this title, the Board 
may obtain upon request the views of any other Federal agency which, 
in the judgment of the Board, exercises regulatory or supervisory 
functions with respect to any class of persons subject to this title. 
PUBLIC LAW 95-630—NOV. 10, 1978 
92 STAT. 3741 
"§ 919. Relation to State laws 
15 use I693q. 
"This title does not annul, alter, or affect the laws of any State 
relating to electronic fund transfers, except to the extent that those 
laws are inconsistent with the provisions of this title, and then only 
to the extent of the inconsistency. A State law is not inconsistent with 
this title if the protection such law affords any consumer is greater 
than the protection afforded by this title. The Board shall, upon 
its own motion or upon the request of any financial institution. State, 
or other interested party, submitted in accordance with procedures pre-
scribed in regulations of the Board, determine whether a State require-
ment is inconsistent or affords greater protection. If the Board deter-
mines that a State requirement is inconsistent, financial institutions 
shall incur no liability under the law of that State for a good faith 
failure to comply with that law, notwithstanding that such determina-
tion is subsequently amended, rescinded, or determined by judicial 
or other authority to be invalid for any reason. This title does not 
extend the applicability of any such law to any class of persons or 
transactions to which it would not otherwise apply. 
"§ 920. Exemption for State regulation 
15 use I693r. 
"The Board shall by regulation exempt from the requirements of 
this title any class of electronic fund transfers within any State if the 
Board determines that under the law of that State that class of elec-
tronic fund transfers is subject to requirements substantially similar 
to those imposed by this title, and that there is adequate provision 
for enforcement, 
"§ 921. Effective date 
15 use 1693 
"This title takes effect upon the expiration of eighteen months °
°
*
®
* 
from the date of its enactment, except that sections 909 and 911 take 
effect upon the expiration of ninety days after the date of enactment.". 
TITLE XXI—EFFECTIVE DATE 
SEC. 2101. Except as otherwise provided herein, this Act shall take 12 USe 375b 
effect upon the expiration of one hundred and twenty days after the °ote-
date of its enactment. 
Approved November 10, 1978. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 95-1115 accompanying H.R. 12157, No. 95-1315 accompany-
ing H.R. 13007, and No. 95-1383 accompanying H.R. 13471 all 
from (eomm. on Banking, Finance and Urban Affairs). 
SENATE REPORTS: No. 95-323 accompanying S. 71, No. 95-844 accompanying S. 
3077, No. 95-915 accompanying S. 3156, and No. 95-1273 
accompanying S. 3499 all from (eomm. on Banking, Housing, and 
Urban Affairs) and No. 95-1039 accompanying S. 3077 (eomm. 
on Environmental and Public Works). 
eONGRESSIONAL REeORD, Vol. 124 (1978): 
July 27, H.R. 12157 considered and passed House. 
Aug. 5, S. 71 considered and passed Senate. 
Aug. 11, H.R. 13007 considered and passed House. 
Oct. 11, considered and passed House. 
Oct. 12, considered and passed Senate, amended. 
Oct. 15, House concurred in Senate amendments with amendments; Senate 
concurred in House amendments.