12 USC 4806 - Regulatory appeals process, ombudsman, and alternative dispute resolution

U.S Code last checked for updates: Apr 26, 2024

§ 4806.

Regulatory appeals process, ombudsman, and alternative dispute resolution

(a)

In general

(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

(d)

Agency ombudsman

(1)

Establishment required

(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

(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

(5)

Coordination with existing agency ADR programs

(A)

Evaluation required

(B)

Multiple ADR programs

(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

(3)

Alternative means of dispute resolution

(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

(Pub. L. 103–325, title III, § 309, Sept. 23, 1994, 108 Stat. 2218.)

cite as: 12 USC 4806