S.Amdt. 2638

1. Adds SEC. ____. IMPROVED REGULATION AND EXAMINATION OF SERVICE PROVIDERS wherever appropriate

   Adds a section

   Inserted: SEC. ____. IMPROVED REGULATION AND EXAMINATION OF SERVICE PROVIDERS.

   Inserted: (a) Bank Service Company Act.--Section 7 of the Bank Service Company Act (12 U.S.C. 1867) is amended by adding at the end the following:

   Inserted: "(e) Required Examinations.--

   Inserted: "(1) In general.--Except as provided in paragraph (3), the appropriate Federal banking agency shall, not less than once during each 12-month period, conduct a full-scope, on-site examination of each bank service company.

   Inserted: "(2) State examinations acceptable.--Except as provided in paragraph (3), 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 bank service company conducted by the State during the intervening 12-month period carries out the purpose of this subsection.

   Inserted: "(3) 18-month rule for certain bank service companies.--The examinations conducted under paragraphs (1) and (2) shall be conducted during an 18-month period, tailored as needed to align with a lengthened examination cycle of a bank service company, if the appropriate Federal banking agency determines that a bank service company--

   Inserted: "(A) was well managed at the most recent examination of the bank service company;

   Inserted: "(B) is not subject to a formal enforcement proceeding or order by the appropriate Federal banking agency (as of the date on which the determination is made); and

   Inserted: "(C) satisfies any other requirement that the appropriate Federal banking agency determines is appropriate.

   Inserted: "(4) Authority to conduct more frequent examinations.--Each appropriate Federal banking agency may examine any bank service company as frequently as the appropriate Federal banking agency determines is necessary.".

   Inserted: (b) Home Owners' Loan Act.--Section 5(d)(7) of the Home Owners' Loan Act (12 U.S.C. 1464(d)(7)) is amended by adding at the end the following:

   Inserted: "(F) Required examinations.--

   Show 7 more inserted paragraphsShow less

   Inserted: "(i) In general.--Except as provided in clause (iii), the appropriate Federal banking agency shall, not less than once during each 12-month period, conduct a full-scope, on-site examination of each service company.

   Inserted: "(ii) State examinations acceptable.--Except as provided in clause (iii), the examinations required by clause (i) may be conducted in alternate 12-month periods, as appropriate, if the appropriate Federal banking agency determines that an examination of the service company conducted by the State during the intervening 12-month period carries out the purpose of this subparagraph.

   Inserted: "(iii) 18-month rule for certain service companies.--The examinations conducted under clauses (i) and (ii) shall be conducted during an 18-month period, tailored as needed to align with a lengthened examination cycle of a service company, if the appropriate Federal banking agency determines that a service company--

   Inserted: "(I) was well managed at the most recent examination of the service company;

   Inserted: "(II) is not subject to a formal enforcement proceeding or order by the appropriate Federal banking agency (as of the date on which the determination is made); and

   Inserted: "(III) satisfies any other requirement that the appropriate Federal banking agency determines is necessary.

   Inserted: "(iv) Authority to conduct more frequent examinations.--Each appropriate Federal banking agency may examine any service company as frequently as the appropriate Federal banking agency determines is necessary.".

   The amendment doesn't say where this goes; the clerk decides.

   Original wording

   At the appropriate place, insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed