15 USC 6603 - Application of chapter

U.S Code last checked for updates: May 05, 2024

§ 6603.

Application of chapter

(a)

General rule

(b)

No new cause of action created

(c)

Claims for personal injury or wrongful death excluded

(d)

Warranty and contract preservation

(1)

In general

(2)

Interpretation of contract

(3)

Unconscionability

(e)

Preemption of State law

(f)

Application with Year 2000 Information and Readiness Disclosure Act

(g)

Application to actions brought by a government entity

(1)

In general

(2)

Definitions

In this subsection:

(A)

Defendant

(i)

In general

(ii)

State

(iii)

Local government

The term “local government” means—

(I)

any county, city, town, township, parish, village, or other general purpose political subdivision of a State; and

(II)

any combination of political subdivisions described in subclause (I) recognized by the Secretary of Housing and Urban Development.

(B)

Y2K upset

The term “Y2K upset”—

(i)

means an exceptional temporary noncompliance with applicable federally enforceable measurement, monitoring, or reporting requirements directly related to a Y2K failure that are beyond the reasonable control of the defendant charged with compliance; and

(ii)

does not include—

(I)

noncompliance with applicable federally enforceable measurement, monitoring, or reporting requirements that constitutes or would create an imminent threat to public health, safety, or the environment;

(II)

noncompliance with applicable federally enforceable measurement, monitoring, or reporting requirements that provide for the safety and soundness of the banking or monetary system, or for the integrity of the national securities markets, including the protection of depositors and investors;

(III)

noncompliance with applicable federally enforceable measurement, monitoring, or reporting requirements to the extent caused by operational error or negligence;

(IV)

lack of reasonable preventative maintenance;

(V)

lack of preparedness for a Y2K failure; or

(VI)

noncompliance with the underlying federally enforceable requirements to which the applicable federally enforceable measurement, monitoring, or reporting requirement relates.

(3)

Conditions necessary for a demonstration of a Y2K upset

A defendant who wishes to establish the affirmative defense of Y2K upset shall demonstrate, through properly signed, contemporaneous operating logs, or other relevant evidence that—

(A)

the defendant previously made a reasonable good faith effort to anticipate, prevent, and effectively remediate a potential Y2K failure;

(B)

a Y2K upset occurred as a result of a Y2K failure or other emergency directly related to a Y2K failure;

(C)

noncompliance with the applicable federally enforceable measurement, monitoring, or reporting requirement was unavoidable in the face of an emergency directly related to a Y2K failure and was necessary to prevent the disruption of critical functions or services that could result in harm to life or property;

(D)

upon identification of noncompliance the defendant invoking the defense began immediate actions to correct any violation of federally enforceable measurement, monitoring, or reporting requirements; and

(E)

the defendant submitted notice to the appropriate Federal regulatory authority of a Y2K upset within 72 hours from the time that the defendant became aware of the upset.

(4)

Grant of a Y2K upset defense

(5)

Length of Y2K upset

(6)

Fraudulent invocation of Y2K upset defense

(7)

Expiration of defense

(8)

Preservation of authority

(h)

Consumer protection from Y2K failures

(1)

In general

(2)

Notice

(3)

Actions may resume after grace period

Notwithstanding paragraph (1), an action prohibited under paragraph (1) may be resumed, if the consumer’s mortgage obligation has not been paid and the servicer of the mortgage has not expressly and in writing granted the consumer an extension of time during which to pay the consumer’s mortgage obligation, but only after the later of—

(A)

four weeks after January 1, 2000; or

(B)

four weeks after notification is made as required under paragraph (2), except that any notification made on or after March 15, 2000, shall not be effective for purposes of this subsection.

(4)

Applicability

(5)

Enforcement of obligations merely tolled

(6)

Definition

In this subsection—

(A)

The term “consumer” means a natural person.

(B)

The term “residential mortgage” has the meaning given the term “federally related mortgage loan” under section 2602 of title 12.

(C)

The term “servicer” means the person, including any successor, responsible for receiving any scheduled periodic payments from a consumer pursuant to the terms of a residential mortgage, including amounts for any escrow account, and for making the payments of principal and interest and such other payments with respect to the amounts received from the borrower as may be required pursuant to the terms of the mortgage. Such term includes the person, including any successor, who makes or holds a loan if such person also services the loan.

(i)

Applicability to securities litigation

(Pub. L. 106–37, § 4, July 20, 1999, 113 Stat. 188.)

cite as: 15 USC 6603