§ 4806. — Regulatory appeals process, ombudsman, and alternative dispute resolution.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4806]
TITLE 12--BANKS AND BANKING
CHAPTER 48--FINANCIAL INSTITUTIONS REGULATORY IMPROVEMENT
Sec. 4806. Regulatory appeals process, ombudsman, and
alternative dispute resolution
(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) of this section, 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.
(Pub. L. 103-325, title III, Sec. 309, Sept. 23, 1994, 108 Stat. 2218.)
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.
Section Referred to in Other Sections
This section is referred to in section 1790d of this title.
