PRIA, Government Policy, Made Personal

Summary

Federal banking agencies and the National Credit Union Administration must set up an independent internal appeals process and name an ombudsman. Within 180 days after September 23, 1994, each must create an appeals system to review important supervisory decisions at banks and credit unions they supervise. Appeals must be decided quickly and must protect the person appealing from examiner retaliation. Within 90 days after September 23, 1994, each agency must publish proposed rules for the appeals process and take public comment. Also, within 180 days after September 23, 1994, each agency must appoint an ombudsman to help people with problems dealing with the agency and to encourage complaints while keeping them confidential. Each agency must also start a pilot alternative dispute resolution (ADR) program within 18 months after September 23, 1994, if the parties including the agency agree to use it. The pilot must be fair, quick, and cheaper than court. The Administrative Conference of the United States must evaluate the pilot and send Congress a report within 18 months after the pilot starts, saying how the pilot met the standards, how often ADR was offered and used, and any recommendations. Agencies may expand ADR after the evaluation. Short definitions: material supervisory determinations (for example, exam ratings, loan loss reserves, and loan classifications on significant loans, but not decisions to appoint a conservator, receiver, or liquidating agent or actions under sections 1831o or 1790a); independent appellate process (review by an official who does not report to the original decisionmaker); alternative means of dispute resolution (see section 571 of title 5); and issues in controversy (final actions when the agency is conservator/receiver or liquidating agent, or other matters the agency finds suitable for ADR). Nothing here limits an agency’s authority to take enforcement or supervisory action.

Title 12, §4806

Banks and Banking, Source: USLM XML via OLRC

(a)In general

Not later than 180 days after September 23, 1994, each appropriate Federal banking agency and the National Credit Union Administration Board shall establish an independent intra-agency appellate process. The process shall be available to review material supervisory determinations made at insured depository institutions or at insured credit unions that the agency supervises.

(b)Review process

In establishing the independent appellate process under subsection (a), each agency shall ensure that—

(1)any appeal of a material supervisory determination by an insured depository institution or insured credit union is heard and decided expeditiously; and

(2)appropriate safeguards exist for protecting the appellant from retaliation by agency examiners.

(c)Comment period

Not later than 90 days after September 23, 1994, each appropriate Federal banking agency and the National Credit Union Administration Board shall provide public notice and opportunity for comment on proposed guidelines for the establishment of an appellate process under this section.

(d)Agency ombudsman

(1)Establishment required

Not later than 180 days after September 23, 1994, each Federal banking agency and the National Credit Union Administration Board shall appoint an ombudsman.

(2)Duties of ombudsman

The ombudsman appointed in accordance with paragraph (1) for any agency shall—

(A)act as a liaison between the agency and any affected person with respect to any problem such party may have in dealing with the agency resulting from the regulatory activities of the agency; and

(B)assure that safeguards exist to encourage complainants to come forward and preserve confidentiality.

(e)Alternative dispute resolution pilot program

(1)In general

Not later than 18 months after September 23, 1994, each Federal banking agency and the National Credit Union Administration Board shall develop and implement a pilot program for using alternative means of dispute resolution of issues in controversy (hereafter in this section referred to as the “alternative dispute resolution program”) that is consistent with the requirements of subchapter IV of chapter 5 of title 5 if the parties to the dispute, including the agency, agree to such proceeding.

(2)Standards

An alternative dispute resolution pilot program developed under paragraph (1) shall—

(A)be fair to all interested parties to a dispute;

(B)resolve disputes expeditiously; and

(C)be less costly than traditional means of dispute resolution, including litigation.

(3)Independent evaluation

Not later than 18 months after the date on which a pilot program is implemented under paragraph (1), the Administrative Conference of the United States shall submit to the Congress a report containing—

(A)an evaluation of that pilot program;

(B)the extent to which the pilot programs meet the standards established under paragraph (2);

(C)the extent to which parties to disputes were offered alternative means of dispute resolution and the frequency with which the parties, including the agencies, accepted or declined to use such means; and

(D)any recommendations of the Conference to improve the alternative dispute resolution procedures of the Federal banking agencies and the National Credit Union Administration Board.

(4)Implementation of program

At any time after completion of the evaluation under paragraph (3)(A), any Federal banking agency and the National Credit Union Administration Board may implement an alternative dispute resolution program throughout the agency, taking into account the results of that evaluation.

(5)Coordination with existing agency ADR programs

(A)Evaluation required

If any Federal banking agency or the National Credit Union Administration maintains an alternative dispute resolution program as of September 23, 1994, under any other provision of law, the Administrative Conference of the United States shall include such program in the evaluation conducted under paragraph (3)(A).

(B)Multiple ADR programs

No provision of this section shall be construed as precluding any Federal banking agency or the National Credit Union Administration Board from establishing more than 1 alternative means of dispute resolution.

(f)Definitions

For purposes of this section, the following definitions shall apply:

(1)Material supervisory determinations

The term “material supervisory determinations”—

(A)includes determinations relating to—

(i)examination ratings;

(ii)the adequacy of loan loss reserve provisions; and

(iii)loan classifications on loans that are significant to an institution; and

(B)does not include a determination by a Federal banking agency or the National Credit Union Administration Board to appoint a conservator or receiver for an insured depository institution or a liquidating agent for an insured credit union, as the case may be, or a decision to take action pursuant to section 1831o of this title or section 1790a of this title, as appropriate.

(2)Independent appellate process

The term “independent appellate process” means a review by an agency official who does not directly or indirectly report to the agency official who made the material supervisory determination under review.

(3)Alternative means of dispute resolution

The term “alternative means of dispute resolution” has the meaning given to such term in section 571 of title 5.

(4)Issues in controversy

The term “issues in controversy” means—

(A)any final agency decision involving any claim against an insured depository institution or insured credit union for which the agency has been appointed conservator or receiver or for which a liquidating agent has been appointed, as the case may be;

(B)any final action taken by an agency in the agency’s capacity as conservator or receiver for an insured depository institution or by the liquidating agent appointed for an insured credit union; and

(C)any other issue for which the appropriate Federal banking agency or the National Credit Union Administration Board determines that alternative means of dispute resolution would be appropriate.

(g)Effect on other authority

Nothing in this section shall affect the authority of an appropriate Federal banking agency or the National Credit Union Administration Board to take enforcement or supervisory action.

Statutory Notes and Related Subsidiaries

Termination of Administrative Conference of United States For termination of Administrative Conference of United States, see provision of title IV of Pub. L. 104–52, set out as a note preceding section 591 of Title 5, Government Organization and Employees.

§4806 Regulatory Appeals Process, Ombudsman, and Alternative Dispute Resolution

Summary

Title 12, §4806

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Citations & Metadata