HR 4437 — SMART Act of 2025

changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italics and existing law in which no change is 
proposed is shown in roman):

 FEDERAL DEPOSIT INSURANCE ACT

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 Sec. 10. (a) The Board of Directors shall administer the 
affairs of the Corporation fairly and impartially and without 
discrimination. The Board of Directors of the Corporation shall 
determine and prescribe the manner in which its obligations 
shall be incurred and its expenses allowed and paid. The 
Corporation shall be entitled to the free use of the United 
States mails in the same manner as the executive departments of 
the Government. The Corporation with the consent of any Federal 
Reserve bank or of any board, commission, independent 
establishment, or executive department of the Government, 
including any field service thereof, may avail itself of the 
use of information, services, and facilities thereof in 
carrying out the provisions of this Act.
 (b) Examinations.--
 (1) Appointment of examiners and claims agents.--The 
 Board of Directors shall appoint examiners and claims 
 agents.
 (2) Regular examinations.--Any examiner appointed 
 under paragraph (1) shall have power, on behalf of the 
 Corporation, to examine--
 (A) any insured State nonmember bank or 
 insured State branch of any foreign bank;
 (B) any depository institution which files an 
 application with the Corporation to become an 
 insured depository institution; and
 (C) any insured depository institution in 
 default,
 whenever the Board of Directors determines an 
 examination of any such depository institution is 
 necessary.
 (3) Special examination of any insured depository 
 institution.--
 (A) In general.--In addition to the 
 examinations authorized under paragraph (2), 
 any examiner appointed under paragraph (1) 
 shall have power, on behalf of the Corporation, 
 to make any special examination of any insured 
 depository institution or nonbank financial 
 company supervised by the Board of Governors or 
 a bank holding company described in section 
 165(a) of the Financial Stability Act of 2010, 
 whenever the Board of Directors determines that 
 a special examination of any such depository 
 institution is necessary to determine the 
 condition of such depository institution for 
 insurance purposes, or of such nonbank 
 financial company supervised by the Board of 
 Governors or bank holding company described in 
 section 165(a) of the Financial Stability Act 
 of 2010, for the purpose of implementing its 
 authority to provide for orderly liquidation of 
 any such company under title II of that Act, 
 provided that such authority may not be used 
 with respect to any such company that is in a 
 generally sound condition.
 (B) Limitation.--Before conducting a special 
 examination of a nonbank financial company 
 supervised by the Board of Governors or a bank 
 holding company described in section 165(a) of 
 the Financial Stability Act of 2010, the 
 Corporation shall review any available and 
 acceptable resolution plan that the company has 
 submitted in accordance with section 165(d) of 
 that Act, consistent with the nonbinding effect 
 of such plan, and available reports of 
 examination, and shall coordinate to the 
 maximum extent practicable with the Board of 
 Governors, in order to minimize duplicative or 
 conflicting examinations.
 (4) Examination of affiliates.--
 (A) In general.--In making any examination 
 under paragraph (2) or (3), any examiner 
 appointed under paragraph (1) shall have power, 
 on behalf of the Corporation, to make such 
 examinations of the affairs of any affiliate of 
 any depository institution as may be necessary 
 to disclose fully--
 (i) the relationship between such 
 depository institution and any such 
 affiliate; and
 (ii) the effect of such relationship 
 on the depository institution.
 (B) Commitment by foreign banks to allow 
 examinations of affiliates.--No branch or 
 depository institution subsidiary of a foreign 
 bank may become an insured depository 
 institution unless such foreign bank submits a 
 written binding commitment to the Board of 
 Directors to permit any examination of any 
 affiliate of such branch or depository 
 institution subsidiary pursuant to subparagraph 
 (A) to the extent determined by the Board of 
 Directors to be necessary to carry out the 
 purposes of this Act.
 (5) Examination of insured state branches.--The Board 
 of Directors shall--
 (A) coordinate examinations of insured State 
 branches of foreign banks with examinations 
 conducted by the Board of Governors of the 
 Federal Reserve System under section 7(c)(1) of 
 the International Banking Act of 1978; and
 (B) to the extent possible, participate in 
 any simultaneous examination of the United 
 States operations of a foreign bank requested 
 by the Board under such section.
 (6) Power and duty of examiners.--Each examiner 
 appointed under paragraph (1) shall--
 (A) have power to make a thorough examination 
 of any insured depository institution or 
 affiliate under paragraph (2), (3), (4), or 
 (5); and
 (B) shall make a full and detailed report of 
 condition of any insured depository institution 
 or affiliate examined to the Corporation.
 (7) Power of claim agents.--Each claim agent 
 appointed under paragraph (1) shall have power to 
 investigate and examine all claims for insured 
 deposits.
 (c) In connection with examinations of insured depository 
institutions and any State nonmember bank, savings association, 
or other institution making application to become insured 
depository institutions, and affiliates thereof, or with other 
types of investigations 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 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) Annual On-Site Examinations of All Insured Depository 
Institutions Required.--
 (1) In general.--The appropriate Federal banking 
 agency shall, not less than once during each 12-month 
 period, conduct a full-scope, on-site examination of 
 each insured depository institution.
 (2) Examinations by corporation.--Paragraph (1) shall 
 not apply during any 12-month period in which the 
 Corporation has conducted a full-scope, on-site 
 examination of the insured depository institution.
 (3) State examinations acceptable.--The examinations 
 required by paragraph (1) may be conducted in alternate 
 12-month periods, as appropriate, if the appropriate 
 Federal banking agency determines that an examination 
 of the insured depository institution conducted by the 
 State during the intervening 12-month period carries 
 out the purpose of this subsection.
 (4) 18-month rule for certain small institutions.--
 Paragraphs (1), (2), and (3) shall apply with ``18-
 month'' substituted for ``12-month'' if--
 (A) the insured depository institution has 
 total assets of less than $3,000,000,000;
 (B) the institution is well capitalized, as 
 defined in section 38;
 (C) when the institution was most recently 
 examined, it was found to be well managed, and 
 its composite condition--
 (i) was found to be outstanding; or
 (ii) was found to be outstanding or 
 good, in the case of an insured 
 depository institution that has total 
 assets of not more than $200,000,000;
 (D) the insured institution is not currently 
 subject to a formal enforcement proceeding or 
 order by the Corporation or the appropriate 
 Federal banking agency; and
 (E) no person acquired control of the 
 institution during the 12-month period in which 
 a full-scope, on-site examination would be 
 required but for this paragraph.
 (5) Certain government-controlled institutions 
 exempted.--Paragraph (1) does not apply to--
 (A) any institution for which the Corporation 
 is conservator; or
 (B) any bridge depository institution, none 
 of the voting securities of which are owned by 
 a person or agency other than the Corporation.
 (6) Coordinated examinations.--To minimize the 
 disruptive effects of examinations on the operations of 
 insured depository institutions--
 (A) each appropriate Federal banking agency 
 shall, to the extent practicable and consistent 
 with principles of safety and soundness and the 
 public interest--
 (i) coordinate examinations to be 
 conducted by that agency at an insured 
 depository institution and its 
 affiliates;
 (ii) coordinate with the other 
 appropriate Federal banking agencies in 
 the conduct of such examinations;
 (iii) work to coordinate with the 
 appropriate State bank supervisor--
 (I) the conduct of all 
 examinations made pursuant to 
 this subsection; and
 (II) the number, types, and 
 frequency of reports required 
 to be submitted to such 
 agencies and supervisors by 
 insured depository 
 institutions, and the type and 
 amount of information required 
 to be included in such reports; 
 and
 (iv) use copies of reports of 
 examinations of insured depository 
 institutions made by any other Federal 
 banking agency or appropriate State 
 bank supervisor to eliminate 
 duplicative requests for information; 
 and
 (B) not later than 2 years after the date of 
 enactment of the Riegle Community Development 
 and Regulatory Improvement Act of 1994, the 
 Federal banking agencies shall jointly 
 establish and implement a system for 
 determining which one of the Federal banking 
 agencies or State bank supervisors shall be the 
 lead agency responsible for managing a unified 
 examination of each insured depository 
 institution and its affiliates, as required by 
 this subsection.
 (7) Separate examinations permitted.--Notwithstanding 
 paragraph (6), each appropriate Federal banking agency 
 may conduct a separate examination in an emergency or 
 under other exigent circumstances, or when the agency 
 believes that a violation of law may have occurred.
 (8) Report.--At the time the system provided for in 
 paragraph (6) is established, the Federal banking 
 agencies shall submit a joint report describing the 
 system to the Committee on Banking, Housing, and Urban 
 Affairs of the Senate and the Committee on Banking, 
 Finance and Urban Affairs of the House of 
 Representatives. Thereafter, the Federal banking 
 agencies shall annually submit a joint report to the 
 Committee on Banking, Housing, and Urban Affairs of the 
 Senate and the Committee on Banking, Finance and Urban 
 Affairs of the House of Representatives regarding the 
 progress of the agencies in implementing the system and 
 indicating areas in which enhancements to the system, 
 including legislature improvements, would be 
 appropriate.
 (9) Standards for determining adequacy of state 
 examinations.--The Federal Financial Institutions 
 Examination Council shall issue guidelines establishing 
 standards to be used at the discretion of the 
 appropriate Federal banking agency for purposes of 
 making a determination under paragraph (3).
 (10) Agencies authorized to increase maximum asset 
 amount of institutions for certain purposes.--At any 
 time after the end of the 2-year period beginning on 
 the date of enactment of the Riegle Community 
 Development and Regulatory Improvement Act of 1994, the 
 appropriate Federal banking agency, in the agency's 
 discretion, may increase the maximum amount limitation 
 contained in paragraph (4)(C)(ii), by regulation, from 
 $200,000,000 to an amount not to exceed $3,000,000,000 
 for purposes of such paragraph, if the agency 
 determines that the greater amount would be consistent 
 with the principles of safety and soundness for insured 
 depository institutions.
 (11) Examination relief for certain well managed and 
 well capitalized insured depository institutions.--
 (A) In general.--The following shall apply to 
 a well managed and well capitalized insured 
 depository institution with $6,000,000,000 or 
 less in consolidated assets:
 (i) Alternating limited-scope 
 examinations.--After an insured 
 depository institution receives a full-
 scope, on-site examination from the 
 appropriate Federal banking agency, the 
 next examination of the insured 
 depository institution by the 
 appropriate Federal banking agency 
 shall be a limited-scope examination, 
 as determined by the appropriate 
 Federal banking agency.
 (ii) Combined examinations.--If an 
 insured depository institution is 
 otherwise subject to separate safety 
 and soundness examinations, consumer 
 compliance examinations, and 
 information technology and 
 cybersecurity examinations, the 
 appropriate Federal banking agency 
 shall, upon request of the insured 
 depository institution, combine two or 
 three such examinations, as specified 
 by the insured depository institution, 
 and carry them out at the same time.
 (B) Exception.--Subparagraph (A) shall not 
 apply to an insured depository institution if--
 (i) the insured depository 
 institution is currently subject to a 
 formal enforcement proceeding or order 
 by the Corporation or the appropriate 
 Federal banking agency; or
 (ii) a person acquired control of the 
 insured depository institution since 
 the most recent full-scope, on-site 
 examination of the insured depository 
 institution from the appropriate 
 Federal banking agency.
 (C) Rulemaking.--Not later than 12 months 
 after the date of enactment of this paragraph, 
 the Federal banking agencies shall issue rules 
 to carry out subparagraph (A), including, with 
 respect to an insured depository institution 
 described under subparagraph (A), to--
 (i) establish procedures for the 
 limited-scope examinations described in 
 subparagraph (A)(i);
 (ii) establish procedures for 
 reviewing insured depository 
 institutions that--
 (I) experience material 
 changes in financial condition 
 or operational risk profile 
 between scheduled examinations; 
 or
 (II) have failed to comply 
 with Federal or State banking 
 laws and regulations; and
 (iii) balance the goals of 
 streamlining the examination cycle for 
 individual insured depository 
 institutions and reducing unnecessary 
 regulatory burdens while maintaining 
 sufficient oversight to ensure the 
 continued safety and soundness of the 
 insured depository institutions and 
 compliance with all applicable laws and 
 regulations.
 (D) Rule of construction.--Nothing in this 
 paragraph may be construed to limit the 
 authority of a Federal banking agency to 
 conduct off-site monitoring, targeted reviews, 
 or additional full-scope, on-site examinations 
 of an insured depository institution if the 
 Federal banking agency determines such 
 monitoring, reviews, or examinations are 
 necessary to ensure safety and soundness or 
 compliance with applicable laws.
 (E) Definitions.--In this paragraph:
 (i) Consumer compliance 
 examination.--The term ``consumer 
 compliance examination'' means an 
 examination to assess compliance with 
 the requirements of Federal consumer 
 financial law (as such term is defined 
 in section 1002 of the Consumer 
 Financial Protection Act of 2010).
 (ii) Well capitalized.--The term 
 ``well capitalized'' has the meaning 
 given that term in section 38(b).
 (iii) Well managed.--With respect to 
 an insured depository institution, the 
 term ``well managed'' means that, when 
 the institution was most recently 
 examined by the appropriate Federal 
 banking agency, the institution was 
 found to be well managed, and the 
 institution's composite condition was 
 found to be satisfactory or 
 outstanding.
 (12) Examination practices.--With respect to on-site 
 examination of an insured depository institution with 
 less than $6,000,000,000 in total assets, the 
 appropriate Federal banking agency shall--
 (A) ensure the examination is led by, to the 
 maximum extent practicable, an examiner with 
 significant experience as an examiner;
 (B) make every effort, to the maximum extent 
 practicable, to minimize the number of 
 examiners utilized and the amount of time spent 
 at the institution to carry out the 
 examination;
 (C) make every effort, to the maximum extent 
 practicable, to schedule the examination at a 
 time that is convenient for the institution; 
 and
 (D) to the maximum extent practicable, give 
 the institution advance notice of issues 
 expected to be covered in the examination.
 (13) Report.--In its annual report to Congress, each 
 Federal banking agency shall include--
 (A) information on how the agency is 
 complying with paragraphs (11) and (12); and
 (B) aggregate data summarizing the agency's 
 examination practices with respect to insured 
 depository institutions with less than 
 $6,000,000,000 in total assets, including--
 (i) the average experience of 
 examiners, including the average number 
 of years of examiner experience of 
 those who lead on-site examinations;
 (ii) the average number of examiners 
 utilized; and
 (iii) the average amount of time the 
 agency spends visiting such 
 institutions for on-site examinations.
 (e) Examination Fees.--
 (1) Regular and special examinations of depository 
 institutions.--The cost of conducting any regular 
 examination or special examination of any depository 
 institution under subsection (b)(2), (b)(3), or (d) or 
 of any entity described in section 3(q)(2) may be 
 assessed by the Corporation against the institution or 
 entity to meet the expenses of the Corporation in 
 carrying out such examinations.
 (2) Examination of affiliates.--The cost of 
 conducting any examination of any affiliate of any 
 insured depository institution under subsection (b)(4) 
 may be assessed by the Corporation against each 
 affiliate which is examined to meet the Corporation's 
 expenses in carrying out such examination.
 (3) Assessment against depository institution in case 
 of affiliate's refusal to pay.--
 (A) In general.--Subject to subparagraph (B), 
 if any affiliate of any insured depository 
 institution--
 (i) refuses to pay any assessment 
 under paragraph (2); or
 (ii) fails to pay any such assessment 
 before the end of the 60-day period 
 beginning on the date the affiliate 
 receives notice of the assessment,
 the Corporation may assess such cost against, 
 and collect such cost from, the depository 
 institution.
 (B) Affiliate of more than 1 depository 
 institution.--If any affiliate referred to in 
 subparagraph (A) is an affiliate of more than 1 
 insured depository institution, the assessment 
 under subparagraph (A) may be assessed against 
 the depository institutions in such proportions 
 as the Corporation determines to be 
 appropriate.
 (4) Civil money penalty for affiliate's refusal to 
 cooperate.--
 (A) Penalty imposed.--If any affiliate of any 
 insured depository institution--
 (i) refuses to permit an examiner 
 appointed by the Board of Directors 
 under subsection (b)(1) to conduct an 
 examination; or
 (ii) refuses to provide any 
 information required to be disclosed in 
 the course of any examination,
 the depository institution shall forfeit and 
 pay a penalty of not more than $5,000 for each 
 day that any such refusal continues.
 (B) Assessment and collection.--Any penalty 
 imposed under subparagraph (A) shall be 
 assessed and collected by the Corporation in 
 the manner provided in section 8(i)(2).
 (5) Deposits of examination assessment.--Amounts 
 received by the Corporation under this subsection 
 (other than paragraph (4)) may be deposited in the 
 manner provided in section 13.
 (f) Preservation of Agency Records.--
 (1) In general.--A Federal banking agency may cause 
 any and all records, papers, or documents kept by the 
 agency or in the possession or custody of the agency to 
 be--
 (A) photographed or microphotographed or 
 otherwise reproduced upon film; or
 (B) preserved in any electronic medium or 
 format which is capable of--
 (i) being read or scanned by 
 computer; and
 (ii) being reproduced from such 
 electronic medium or format by printing 
 any other form of reproduction of 
 electronically stored data.
 (2) Treatment as original records.--Any photographs, 
 microphotographs, or photographic film or copies 
 thereof described in paragraph (1)(A) or reproduction 
 of electronically stored data described in paragraph 
 (1)(B) shall be deemed to be an original record for all 
 purposes, including introduction in evidence in all 
 State and Federal courts or administrative agencies, 
 and shall be admissible to prove any act, transaction, 
 occurrence, or event therein recorded.
 (3) Authority of the federal banking agencies.--Any 
 photographs, microphotographs, or photographic film or 
 copies thereof described in paragraph (1)(A) or 
 reproduction of electronically stored data described in 
 paragraph (1)(B) shall be preserved in such manner as 
 the Federal banking agency shall prescribe, and the 
 original records, papers, or documents may be destroyed 
 or otherwise disposed of as the Federal banking agency 
 may direct.
 (g) Authority To Prescribe Regulations and Definitions.--
Except to the extent that authority under this Act is conferred 
on any of the Federal banking agencies other than the 
Corporation, the Corporation may--
 (1) prescribe regulations to carry out this Act; and
 (2) by regulation define terms as necessary to carry 
 out this Act.
 (h) Coordination of Examination Authority.--
 (1) State bank supervisors of home and host states.--
 (A) Home state of bank.--The appropriate 
 State bank supervisor of the home State of an 
 insured State bank has authority to examine and 
 supervise the bank.
 (B) Host state branches.--The State bank 
 supervisor of the home State of an insured 
 State bank and any State bank supervisor of an 
 appropriate host State shall exercise its 
 respective authority to supervise and examine 
 the branches of the bank in a host State in 
 accordance with the terms of any applicable 
 cooperative agreement between the home State 
 bank supervisor and the State bank supervisor 
 of the relevant host State.
 (C) Supervisory fees.--Except as expressly 
 provided in a cooperative agreement between the 
 State bank supervisors of the home State and 
 any host State of an insured State bank, only 
 the State bank supervisor of the home State of 
 an insured State bank may levy or charge State 
 supervisory fees on the bank.
 (2) Host state examination.--
 (A) In general.--With respect to a branch 
 operated in a host State by an out-of-State 
 insured State bank that resulted from an 
 interstate merger transaction approved under 
 section 44, or that was established in such 
 State pursuant to section 5155(g) of the 
 Revised Statutes of the United States, the 
 third undesignated paragraph of section 9 of 
 the Federal Reserve Act or section 18(d)(4) of 
 this Act, the appropriate State bank supervisor 
 of such host State may--
 (i) with written notice to the State 
 bank supervisor of the bank's home 
 State and subject to the terms of any 
 applicable cooperative agreement with 
 the State bank supervisor of such home 
 State, examine such branch for the 
 purpose of determining compliance with 
 host State laws that are applicable 
 pursuant to section 24(j), including 
 those that govern community 
 reinvestment, fair lending, and 
 consumer protection; and
 (ii) if expressly permitted under and 
 subject to the terms of a cooperative 
 agreement with the State bank 
 supervisor of the bank's home State or 
 if such out-of-State insured State bank 
 has been determined to be in a troubled 
 condition by either the State bank 
 supervisor of the bank's home State or 
 the bank's appropriate Federal banking 
 agency, participate in the examination 
 of the bank by the State bank 
 supervisor of the bank's home State to 
 ascertain that the activities of the 
 branch in such host State are not 
 conducted in an unsafe or unsound 
 manner.
 (B) Notice of determination.--
 (i) In general.--The State bank 
 supervisor of the home State of an 
 insured State bank shall notify the 
 State bank supervisor of each host 
 State of the bank if there has been a 
 final determination that the bank is in 
 a troubled condition.
 (ii) Timing of notice.--The State 
 bank supervisor of the home State of an 
 insured State bank shall provide notice 
 under clause (i) as soon as is 
 reasonably possible, but in all cases 
 not later than 15 business days after 
 the date on which the State bank 
 supervisor has made such final 
 determination or has received written 
 notification of such final 
 determination.
 (3) Host state enforcement.--If the State bank 
 supervisor of a host State determines that a branch of 
 an out-of-State insured State bank is violating any law 
 of the host State that is applicable to such branch 
 pursuant to section 24(j), including a law that governs 
 community reinvestment, fair lending, or consumer 
 protection, the State bank supervisor of the host State 
 or, to the extent authorized by the law of the host 
 State, a host State law enforcement officer may, with 
 written notice to the State bank supervisor of the 
 bank's home State and subject to the terms of any 
 applicable cooperative agreement with the State bank 
 supervisor of the bank's home State, undertake such 
 enforcement actions and proceedings as would be 
 permitted under the law of the host State as if the 
 branch were a bank chartered by that host State.
 (4) Cooperative agreement.--
 (A) In general.--The State bank supervisors 
 from 2 or more States may enter into 
 cooperative agreements to facilitate State 
 regulatory supervision of State banks, 
 including cooperative agreements relating to 
 the coordination of examinations and joint 
 participation in examinations.
 (B) Definition.--For purposes of this 
 subsection, the term ``cooperative agreement'' 
 means a written agreement that is signed by the 
 home State bank supervisor and the host State 
 bank supervisor to facilitate State regulatory 
 supervision of State banks, and includes 
 nationwide or multi-State cooperative 
 agreements and cooperative agreements solely 
 between the home State and host State.
 (C) Rule of construction.--Except for State 
 bank supervisors, no provision of this 
 subsection relating to such cooperative 
 agreements shall be construed as limiting in 
 any way the authority of home State and host 
 State law enforcement officers, regulatory 
 supervisors, or other officials that have not 
 signed such cooperative agreements to enforce 
 host State laws that are applicable to a branch 
 of an out-of-State insured State bank located 
 in the host State pursuant to section 24(j).
 (5) Federal regulatory authority.--No provision of 
 this subsection shall be construed as limiting in any 
 way the authority of any Federal banking agency.
 (6) State taxation authority not affected.--No 
 provision of this subsection shall be construed as 
 affecting the authority of any State or political 
 subdivision of any State to adopt, apply, or administer 
 any tax or method of taxation to any bank, bank holding 
 company, or foreign bank, or any affiliate of any bank, 
 bank holding company, or foreign bank, to the extent 
 that such tax or tax method is otherwise permissible by 
 or under the Constitution of the United States or other 
 Federal law.
 (7) Definitions.--For purpose of this section, the 
 following definitions shall apply:
 (A) Host state, home state, out-of-State 
 bank.--The terms ``host State'', ``home 
 State'', and ``out-of-State bank'' have the 
 same meanings as in section 44(g).
 (B) State supervisory fees.--The term ``State 
 supervisory fees'' means assessments, 
 examination fees, branch fees, license fees, 
 and all other fees that are levied or charged 
 by a State bank supervisor directly upon an 
 insured State bank or upon branches of an 
 insured State bank.
 (C) Troubled condition.--Solely for purposes 
 of paragraph (2)(B), an insured State bank has 
 been determined to be in ``troubled condition'' 
 if the bank--
 (i) has a composite rating, as 
 determined in its most recent report of 
 examination, of 4 or 5 under the 
 Uniform Financial Institutions Ratings 
 System;
 (ii) is subject to a proceeding 
 initiated by the Corporation for 
 termination or suspension of deposit 
 insurance; or
 (iii) is subject to a proceeding 
 initiated by the State bank supervisor 
 of the bank's home State to vacate, 
 revoke, or terminate the charter of the 
 bank, or to liquidate the bank, or to 
 appoint a receiver for the bank.
 (D) Final determination.--For purposes of 
 paragraph (2)(B), the term ``final 
 determination'' means the transmittal of a 
 report of examination to the bank or 
 transmittal of official notice of proceedings 
 to the bank.
 (i) Flood Insurance Compliance by Insured Depository 
Institutions.--
 (1) Examinations.--The appropriate Federal banking 
 agency shall, during each scheduled on-site examination 
 required by this section, determine whether the insured 
 depository institution is complying with the 
 requirements of the national flood insurance program.
 (2) Report.--
 (A) Requirement.--Not later than 1 year after 
 the date of enactment of the Riegle Community 
 Development and Regulatory Improvement Act of 
 1994 and biennially thereafter for the next 4 
 years, each appropriate Federal banking agency 
 shall submit a report to the Congress on 
 compliance by insured depository institutions 
 with the requirements of the national flood 
 insurance program.
 (B) Contents.--Each report submitted under 
 this paragraph shall include a description of 
 the methods used to determine compliance, the 
 number of institutions examined during the 
 reporting year, a listing and total number of 
 institutions found not to be in compliance, 
 actions taken to correct incidents of 
 noncompliance, and an analysis of compliance, 
 including a discussion of any trends, patterns, 
 and problems, and recommendations regarding 
 reasonable actions to improve the efficiency of 
 the examinations processes.
 (j) Consultation Among Examiners.--
 (1) In general.--Each appropriate Federal banking 
 agency shall take such action as may be necessary to 
 ensure that examiners employed by the agency--
 (A) consult on examination activities with 
 respect to any depository institution; and
 (B) achieve an agreement and resolve any 
 inconsistencies in the recommendations to be 
 given to such institution as a consequence of 
 any examinations.
 (2) Examiner-in-charge.--Each appropriate Federal 
 banking agency shall consider appointing an examiner-
 in-charge with respect to a depository institution to 
 ensure consultation on examination activities among all 
 of the examiners of that agency involved in 
 examinations of the institution.
 (k) One-Year Restrictions on Federal Examiners of Financial 
Institutions.--
 (1) In general.--In addition to other applicable 
 restrictions set forth in title 18, United States Code, 
 the penalties set forth in paragraph (6) of this 
 subsection shall apply to any person who--
 (A) was an officer or employee (including any 
 special Government employee) of a Federal 
 banking agency or a Federal reserve bank;
 (B) served 2 or more months during the final 
 12 months of his or her employment with such 
 agency or entity as the senior examiner (or a 
 functionally equivalent position) of a 
 depository institution or depository 
 institution holding company with continuing, 
 broad responsibility for the examination (or 
 inspection) of that depository institution or 
 depository institution holding company on 
 behalf of the relevant agency or Federal 
 reserve bank; and
 (C) within 1 year after the termination date 
 of his or her service or employment with such 
 agency or entity, knowingly accepts 
 compensation as an employee, officer, director, 
 or consultant from--
 (i) such depository institution, any 
 depository institution holding company 
 that controls such depository 
 institution, or any other company that 
 controls such depository institution; 
 or
 (ii) such depository institution 
 holding company or any depository 
 institution that is controlled by such 
 depository institution holding company.
 (2) Definitions.--For purposes of this subsection--
 (A) the term ``depository institution'' 
 includes an uninsured branch or agency of a 
 foreign bank, if such branch or agency is 
 located in any State; and
 (B) the term ``depository institution holding 
 company'' includes any foreign bank or company 
 described in section 8(a) of the International 
 Banking Act of 1978.
 (3) Rules of construction.--For purposes of this 
 subsection, a foreign bank shall be deemed to control 
 any branch or agency of the foreign bank, and a person 
 shall be deemed to act as a consultant for a depository 
 institution, depository institution holding company, or 
 other company, only if such person directly works on 
 matters for, or on behalf of, such depository 
 institution, depository institution holding company, or 
 other company.
 (4) Regulations.--
 (A) In general.--Each Federal banking agency 
 shall prescribe rules or regulations to 
 administer and carry out this subsection, 
 including rules, regulations, or guidelines to 
 define the scope of persons referred to in 
 paragraph (1)(B).
 (B) Consultation required.--The Federal 
 banking agencies shall consult with each other 
 for the purpose of assuring that the rules and 
 regulations issued by the agencies under 
 subparagraph (A) are, to the extent possible, 
 consistent, comparable, and practicable, taking 
 into account any differences in the supervisory 
 programs utilized by the agencies for the 
 supervision of depository institutions and 
 depository institution holding companies.
 (5) Waiver.--
 (A) Agency authority.--A Federal banking 
 agency may grant a waiver, on a case by case 
 basis, of the restriction imposed by this 
 subsection to any officer or employee 
 (including any special Government employee) of 
 that agency, and the Board of Governors of the 
 Federal Reserve System may grant a waiver of 
 the restriction imposed by this subsection to 
 any officer or employee of a Federal reserve 
 bank, if the head of such agency certifies in 
 writing that granting the waiver would not 
 affect the integrity of the supervisory program 
 of the relevant Federal banking agency.
 (B) Definition.--For purposes of this 
 paragraph, the head of an agency is--
 (i) the Comptroller of the Currency, 
 in the case of the Office of the 
 Comptroller of the Currency;
 (ii) the Chairman of the Board of 
 Governors of the Federal Reserve 
 System, in the case of the Board of 
 Governors of the Federal Reserve 
 System; and
 (iii) the Chairperson of the Board of 
 Directors, in the case of the 
 Corporation.
 (6) Penalties.--
 (A) In general.--In addition to any other 
 administrative, civil, or criminal remedy or 
 penalty that may otherwise apply, whenever a 
 Federal banking agency determines that a person 
 subject to paragraph (1) has become associated, 
 in the manner described in paragraph (1)(C), 
 with a depository institution, depository 
 institution holding company, or other company 
 for which such agency serves as the appropriate 
 Federal banking agency, the agency shall impose 
 upon such person one or more of the following 
 penalties:
 (i) Industry-wide prohibition 
 order.--The Federal banking agency 
 shall serve a written notice or order 
 in accordance with and subject to the 
 provisions of section 8(e)(4) for 
 written notices or orders under 
 paragraph (1) or (2) of section 8(e), 
 upon such person of the intention of 
 the agency--
 (I) to remove such person 
 from office or to prohibit such 
 person from further 
 participation in the conduct of 
 the affairs of the depository 
 institution, depository 
 institution holding company, or 
 other company for a period of 
 up to 5 years; and
 (II) to prohibit any further 
 participation by such person, 
 in any manner, in the conduct 
 of the affairs of any insured 
 depository institution for a 
 period of up to 5 years.
 (ii) Civil monetary penalty.--The 
 Federal banking agency may, in an 
 administrative proceeding or civil 
 action in an appropriate United States 
 district court, impose on such person a 
 civil monetary penalty of not more than 
 $250,000. Any administrative proceeding 
 under this clause shall be conducted in 
 accordance with section 8(i). In lieu 
 of an action by the Federal banking 
 agency under this clause, the Attorney 
 General of the United States may bring 
 a civil action under this clause in the 
 appropriate United States district 
 court.
 (B) Scope of prohibition order.--Any person 
 subject to an order issued under subparagraph 
 (A)(i) shall be subject to paragraphs (6) and 
 (7) of section 8(e) in the same manner and to 
 the same extent as a person subject to an order 
 issued under such section.
 (C) Definitions.--Solely for purposes of this 
 paragraph, the ``appropriate Federal banking 
 agency'' for a company that is not a depository 
 institution or depository institution holding 
 company shall be the Federal banking agency on 
 whose behalf the person described in paragraph 
 (1) performed the functions described in 
 paragraph (1)(B).

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 ---------- 

 FEDERAL CREDIT UNION ACT

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TITLE II--SHARE INSURANCE

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 examination of insured credit unions

 Sec. 204. (a) The Board shall appoint examiners who shall 
have power, on its behalf, to examine any insured credit union, 
any credit union making application for insurance of its member 
accounts, or any closed insured credit union whenever in the 
judgment of the Board an examination is necessary to determine 
the condition of any such credit union for insurance purposes. 
Each examiner shall have power to make a thorough examination 
of all of the affairs of the credit union and shall make a full 
and detailed report of the condition of the credit union to the 
Board. The Board in like manner shall appoint claim agents who 
shall have power to investigate and examine all claims for 
insured member accounts. Each claim agent shall have power to 
administer oaths and affirmations, to examine and to take and 
preserve testimony under oath as to any matter in respect to 
claims for insured accounts, and to issue subpenas and subpenas 
duces tecum and, for the enforcement thereof, to apply to the 
United States district court for the judicial district or the 
United States court in any territory in which the principal 
office of the credit union is located or in which the witness 
resides or carries on business. Such courts shall have 
jurisdiction and power to order and require compliance with any 
such subpena.
 (b) In connection with examinations of insured credit unions, 
or with other types of investigations to determine compliance 
with applicable law and regulations, the Board, or its 
designated representatives, shall have power to administer 
oaths and affirmations, to examine and to take and preserve 
testimony under oath as to any matter in respect of the affairs 
of any such credit union, and to issue subpenas and subpenas 
duces tecum and to exercise such other powers as are set forth 
in section 206(p) and, for the enforcement thereof, to apply to 
the United States district court for the judicial district or 
the United States court in any territory in which the principal 
office of the credit union is located or in which the witness 
resides or carries on business. Such courts shall have 
jurisdiction and power to order and require compliance with any 
such subpena.
 (c) In cases of refusal to obey a subpena issued to, or 
contumacy by, any person, the Board may invoke the aid of any 
court of the United States within the jurisdiction of which 
such hearing, examination, or investigation is carried on, or 
where such person resides or carries on business, in requiring 
the attendance and testimony of witnesses and the production of 
books, records, or other papers. Such court may issue an order 
requiring such person to appear before the Board, or before a 
person designated by them, there to produce records, if so 
ordered, or to give testimony touching the matter in question. 
Any failure to obey such order of the court may be punished by 
such court as a contempt thereof. All process in any such case 
may be served in the judicial district whereof such person is 
an inhabitant or carries on business or wherever he may be 
found. No person shall be excused from attending and testifying 
or from producing books, records, or other papers in obedience 
to a subpena issued under the authority of this title on the 
ground that the testimony or evidence, documentary or 
otherwise, required of him may tend to incriminate him or 
subject him to penalty or forfeiture, but no individual shall 
be prosecuted or subject to any penalty or forfeiture for or on 
account of any transaction, matter, or thing concerning which 
he is compelled to testify or produce evidence, documentary or 
otherwise, after having claimed his privilege against self-
incrimination, except that such individual so testifying shall 
not be exempt from prosecution and punishment for perjury 
committed in so testifying.
 (d) The Administration may accept any report of examination 
made by or to any commission, board, or authority having 
supervision of a State-chartered credit union and may furnish 
to any such commission, board, or authority reports of 
examination made on behalf of the Board.
 (e) Flood Insurance Compliance by Insured Credit Unions.--
 (1) Examination.--The Board shall, during each 
 examination conducted under this section, determine 
 whether the insured credit union is complying with the 
 requirements of the national flood insurance program.
 (2) Report.--
 (A) Requirement.--Not later than 1 year after 
 the date of enactment of the Riegle Community 
 Development and Regulatory Improvement Act of 
 1994 and biennially thereafter for the next 4 
 years, the Board shall submit a report to the 
 Congress on compliance by insured credit unions 
 with the requirements of the national flood 
 insurance program.
 (B) Contents.--The report shall include a 
 description of the methods used to determine 
 compliance, the number of insured credit unions 
 examined during the reporting year, a listing 
 and total number of insured credit unions found 
 not to be in compliance, actions taken to 
 correct incidents of noncompliance, and an 
 analysis of compliance, including a discussion 
 of any trends, patterns, and problems, and 
 recommendations regarding reasonable actions to 
 improve the efficiency of the examinations 
 processes.
 (f) Access to Liquidity.--The Board shall--
 (1) periodically assess the potential liquidity needs 
 of each insured credit union, and the options that the 
 credit union has available for meeting those needs; and
 (2) periodically assess the potential liquidity needs 
 of insured credit unions as a group, and the options 
 that insured credit unions have available for meeting 
 those needs.
 (g) Sharing Information With Federal Reserve Banks.--The 
Board shall, for the purpose of facilitating insured credit 
unions' access to liquidity, make available to the Federal 
reserve banks (subject to appropriate assurances of 
confidentiality) information relevant to making advances to 
such credit unions, including the Board's reports of 
examination.
 (h) Examination Relief for Certain Well Managed and Well 
Capitalized Insured Credit Unions.--
 (1) In general.--The following shall apply to a well 
 managed and well capitalized insured credit union with 
 $6,000,000,000 or less in consolidated assets:
 (A) Alternating limited-scope examinations.--
 After an insured credit union receives a full-
 scope, on-site examination from the National 
 Credit Union Administration, the next 
 examination of the insured credit union by the 
 National Credit Union Administration shall be a 
 limited-scope examination, as determined by the 
 National Credit Union Administration.
 (B) Combined examinations.--If an insured 
 credit union is otherwise subject to separate 
 safety and soundness examinations, consumer 
 compliance examinations, and information 
 technology and cybersecurity examinations, the 
 National Credit Union Administration shall, 
 upon request of the insured credit union, 
 combine two or three such examinations, as 
 specified by the insured credit union, and 
 carry them out at the same time.
 (2) Exception.--Paragraph (1) shall not apply to an 
 insured credit union if the insured credit union is 
 currently subject to a formal enforcement proceeding or 
 order by the National Credit Union Administration.
 (3) Rulemaking.--Not later than 12 months after the 
 date of enactment of this subsection, the National 
 Credit Union Administration shall issue rules to carry 
 out paragraph (1), including, with respect to an 
 insured credit union described under paragraph (1), 
 to--
 (A) establish procedures for the limited-
 scope examinations described in paragraph 
 (1)(A);
 (B) establish procedures for reviewing 
 insured credit unions that--
 (i) experience material changes in 
 financial condition or operational risk 
 profile between scheduled examinations; 
 or
 (ii) have failed to comply with 
 Federal or State banking laws and 
 regulations; and
 (C) balance the goals of streamlining the 
 examination cycle for individual insured credit 
 unions and reducing unnecessary regulatory 
 burdens while maintaining sufficient oversight 
 to ensure the continued safety and soundness of 
 the insured credit unions and compliance with 
 all applicable laws and regulations.
 (4) Rule of construction.--Nothing in this subsection 
 may be construed to limit the authority of the National 
 Credit Union Administration to conduct off-site 
 monitoring, targeted reviews, or additional full-scope, 
 on-site examinations of an insured credit union if the 
 National Credit Union Administration determines such 
 monitoring, reviews, or examinations are necessary to 
 ensure safety and soundness or compliance with 
 applicable laws.
 (5) Definitions.--In this paragraph:
 (A) Consumer compliance examination.--The 
 term ``consumer compliance examination'' means 
 an examination to assess compliance with the 
 requirements of Federal consumer financial law 
 (as such term is defined in section 1002 of the 
 Consumer Financial Protection Act of 2010).
 (B) Well capitalized.--The term ``well 
 capitalized'' has the meaning given that term 
 in section 216(c).
 (C) Well managed.--With respect to an insured 
 credit union, the term ``well managed'' means 
 that, when the credit union was most recently 
 examined by the National Credit Union 
 Administration, the credit union was found to 
 be well managed, and the credit union's 
 composite condition was found to be 
 satisfactory or outstanding.
 (i) Examination Practices.--With respect to on-site 
examination of an insured credit union with less than 
$6,000,000,000 in total assets, the National Credit Union 
Administration shall--
 (1) ensure the examination is led by, to the maximum 
 extent practicable, an examiner with significant 
 experience as an examiner;
 (2) make every effort, to the maximum extent 
 practicable, to minimize the number of examiners 
 utilized and the amount of time spent at the credit 
 union to carry out the examination;
 (3) make every effort, to the maximum extent 
 practicable, to schedule the examination at a time that 
 is convenient for the credit union; and
 (4) to the maximum extent practicable, give the 
 credit union advance notice of issues expected to be 
 covered in the examination.
 (j) Report.--In its annual report to Congress, the National 
Credit Union Administration shall include--
 (1) information on how the Administration is 
 complying with subsections (h) and (i); and
 (2) aggregate data summarizing the Administration's 
 examination practices with respect to insured credit 
 unions with less than $6,000,000,000 in total assets, 
 including--
 (A) the average experience of examiners, 
 including the average number of years of 
 examiner experience of those who lead on-site 
 examinations;
 (B) the average number of examiners utilized; 
 and
 (C) the average amount of time the 
 Administration spends visiting such credit 
 unions for on-site examinations.

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