FINANCIAL CONSUMERS’ ASSOCIATION ACT
Sec. 1201. Short Title
Sec. 1202. Findings and Purposes.
Sec. 1203. Definitions.
Sec. 1204. Establishment of the Association.
(B) Regional and Local Offices.
(D) Nonprofit, Nonstock Status.
(F) Membership Fee.
(G) Political Contributions Prohibited.
Sec. 1205. Authorization of Appropriations and Allotments of Grants.
Sec. 1206. Duties and Powers of the Association.
Sec. 1207. The Interim Board.
(A) Establishment of the Interim Board.
(C) Duties of Interim Board.
(D) Applicability of Certain Other Provisions of this Act.
(E) Limitation on Authority to Appear Before Other Bodies.
(F) Conduct First General Election.
Sec. 1208. Insert Provisions.
(B) Requirements Applicable to Statutory Inserts.
(C) Statutory Insert Required to Be Included in Statements of Depository
Sec. 1209. Delegates.
(A) One Delegate to Be Elected from Each District.
(B) Election Districts.
(C) Duties and Powers of Delegates.
(D) Annual Meetings.
(E) Terms of Office.
Sec. 1210. Board of Directors.
(A) Management of Association.
(B) One-person One-vote.
(C) Terms of Office.
(E) Powers and Duties of Board.
(F) Election of Officers.
(G) Executive Director of Association.
(H) No Compensation for Association Directors.
(I) Bonding Requirement for Staff.
(J) Annual Financial Statements of Directors.
Sec. 1211. Elections of Delegates.
(A) Voting Standard.
(B) Eligibility Standards for Nomination as a Delegate.
(C) Distribution of Election Material.
(D) Limitation on Campaign Expenditures.
(E) Limitation on Use of Campaign Contributions.
(F) Limitation on Amount of Campaign Contributions.
(G) Prohibition on Acceptance of Certain Contributions.
Sec. 1212. Elections of Directors.
(A) Election of the Board of Directors.
(B) Eligibility Standards for the Board of Directors.
(C) Applicability to All Board Elections.
Sec. 1213. Qualifications.
(A) Candidate’s Statement.
(B) Financial Statement.
(C) Affirmation of Truth of Statements.
(D) Ineligibility of Interim Directors and Staff During First Election.
(E) Ineligibility of Delegates and Directors to Hold Other Public Office.
(F) Ineligibility of Officers, Directors, Employees, and Shareholders of
(G) Ineligibility of Officers and Employees of Federal or State Depository
Institution Regulatory Agencies.
Sec. 1214. Ballot Issues.
Sec. 1215. Access to Member Mailings.
Sec. 1216. Penalties.
Sec. 1217. Dissolution.
Sec. 1218. Relationship to Existing Law.
Sec. 1219. Construction.
Sec. 1220. Severability.
Sec. 1221. Effective Date.
SEC. 1201. SHORT TITLE.–
This Act may be cited as the “Financial Consumers’ Association Act of 1990”.
SEC. 1202. FINDINGS AND PURPOSES.–
(a) FINDINGS.–The Congress hereby finds that:
(1) consumers and depositors are an integral part of the financial system and are affected by the safety and soundness of the financial industry in the economy;
(2) consumers have more financial choices today than ever before, but not enough information with which to make those choices;
(3) the American public is confronting the worst financial crisis in the history of the United States since the depression of the 1930s;
(4) major factors contributing to the savings and loan crisis include: the deregulation of the savings and loan industry without regard to the interests of or the
effect on consumers; and state and federal regulators’ failure to adequately police the financial services markets for unfair or deceptive practices, fraud and
(5) the financial industry has enjoyed access to, and has powerfully represented its interests before, Congress and federal and state regulators, and the courts,
while financial-service consumers have had limited representation;
(6) the GAO currently estimates the cost of the savings and loan bailout to be $500,000,000,000 over the next 30 years; and that most of this cost will be borne
by consumer taxpayers;
(7) consumers insure financial depository institutions through their tax dollars, yet lack adequate representation before Congress, state legislatures, and state and
federal regulatory agencies.
(8) the resources available for representation of consumer, minority, and local community interests in the financial industry need to be expanded so citizens can
better monitor the performance of state and federal agencies which regulate depository institutions and participate in public-policy debate regarding the financial
(9) the creation of a public-purpose, democratically controlled, self-funded, nation-wide membership Association of financial-service consumers is the most
effective way to enhance the representation of consumer, minority and local community interest in the financial industry and to meet the expanding information
needs of consumers in the financial services market;
(10) in exchange for the provision of deposit
insurance, it is appropriate for the federal government to require federally
insured depository institutions to include in their mailings to depositors an
insert informing the depositors about a financial consumers association.
(b) PURPOSES.–It is the purpose of this Act–
(1) to establish a public purpose, nonprofit, democratically controlled, membership Association of financial-service consumers;
(2) to give the Association a mandate to inform consumers and represent consumer, local community, and broad public interests in financial-service matters;
(3) to establish democratic rules of governance for the Association;
(4) to require federally insured depository institutions to include inserts concerning the Association within their deposit account mailings to consumers; and
(5) to prescribe the text and format of the statutory
SEC. 1203. DEFINITIONS.– For purposes of this Act–
(a) Association.–The term “association” means the financial consumers Association authorized to be established under this Act.
(b) FINANCIAL SERVICES.–The term “financial services” shall be construed broadly and shall include any financial service, any financial service delivery
system, and any activity closely related to or functionally similar to a financial service. The term shall include, but not be limited to, each of the following:
payment or transfer of funds; acceptance of deposits; extension of credit; credit reporting; securities activities; investment or management of funds; investment
advice; and financial counseling.
(c) CONSUMER; ETC.–The terms “financial-service consumer”, “consumer customer” and “consumer” mean an individual who uses a financial service.
(d) INTERESTS OF CONSUMERS IN FINANCIAL-SERVICE MATTERS.–The terms “interests of consumers in financial-service matters” and “interests of
financial-service consumers” mean the interests of consumers in financial-service matters, as individual consumers, collectively in terms of local community
needs, or as reflected in the broad public interest.
(e) MEMBER.–The term “member” means any person who meets the requirements for membership in the financial consumers Association set forth in section
1204 of this Act.
(f) ASSOCIATION DIRECTOR.–The terms “association director” and “director” mean any person duly elected or appointed to the Association board of
directors pursuant to this Act.
(g) CAMPAIGN CONTRIBUTION.–The term “campaign contribution” means any money, good, service, credit, or other benefit provided or promised for the
purpose of electing a delegate.
(h) CAMPAIGN EXPENDITURE.–The term “campaign expenditure” means any payment, use, distribution, or gift of money or anything of value made or
promised for the purpose of electing a delegate.
(i) REGULATORY AGENCY.–The term “regulatory agency” means any governmental office, agency, department, or commission at the federal, state or local
level, which controls, monitors, directs or governs financial services.
(j) REGULATORY PROCEEDING.–The term “regulatory proceeding” means any formal or informal proceeding conducted by any governmental office,
agency, department, or commission at the federal, state or local level, which affects financial services.
(k) IMMEDIATE FAMILY.– The term “immediate family” means a person’s spouse and legal dependents.
SEC. 1204. ESTABLISHMENT OF THE ASSOCIATION.–
(a) CHARTER.–There is hereby authorized to be established a nonprofit corporation by the interim board of directors which will not be an agency or
establishment of the United States Government, to be known as the “Financial Consumers Association” (FCA) hereinafter referred to as the Association. The
Association shall be subject to the provisions of this Act, and, to the extent consistent with this Act, to the District of Columbia Nonprofit Corporations Act.
The Association’s head office shall be located in Washington, D.C.
(b) REGIONAL AND LOCAL OFFICES.–The Association shall establish regional offices in each of the Federal Reserve districts established pursuant to the
provisions of title 12 Section 222. The Association shall also establish local offices in each of the several States, Puerto Rico, Guam, Virgin Islands and
American Samoa pursuant to the Bylaws adopted by the first elected Board of Directors.
(c) BYLAWS.–Except as provided in this Act and in the District of Columbia Nonprofit Corporation Act, the affairs of the Association shall be regulated as
determined in the Bylaws.
(d) NONPROFIT, NONSTOCK STATUS.–The Association chartered under this section–
(1) shall be a nonprofit corporation; and
(2) may not issue any shares of stock or other
securities or pay any dividends.
(e) MEMBERSHIP.–The membership of the Association shall consist of all individuals who–
(1) are 18 years of age or older;
(2) have contributed the required annual membership fee
to the Association.
(f) MEMBERSHIP FEE.–
(1) INITIAL FEE.–Until the end of the 180-day period beginning on the date of the first election of directors, the Association’s annual membership fee shall be
(2) PERMANENT FEE DETERMINED BY BOARD OF
DIRECTORS.–After the end of the 180-day period referred to in paragraph (f)
above, the Association may, by vote of the board of directors, alter the
annual membership fee, including the adoption of a sliding fee structure
related to a member’s income.
(g) POLITICAL CONTRIBUTIONS PROHIBITED.–The Association shall not make any contributions to any political candidate or party.
SEC. 1205. AUTHORIZATION OF APPROPRIATIONS AND ALLOTMENTS OF GRANTS.–There is authorized to be appropriated for the purpose of
establishing the Financial Consumer Association $1,000,000 for the fiscal year ending one year after enactment of this Act.
SEC. 1206. DUTIES AND POWERS OF THE ASSOCIATION.–
(a) DUTIES.–The Association shall have the following duties, and all actions by the Association shall be directed toward the performance of such duties:
(1) To inform, educate, and advise consumers and others on financial-service matters.
(2) To represent and promote the interests of consumers in financial-service matters as individual consumers and collectively in terms of local community needs
and broad public interests.
(3) To take affirmative measures to encourage membership by low- and moderate-income and minority consumers, to disseminate information and advice to
consumers, and to represent consumer interests in financial-service matters.
(4) To inform, insofar as possible, financial-service consumers about the Association, including the procedures for obtaining membership in the Association.
(5) To allocate not less than 5% of its budget to
public education programs and to allocate not less than 50% of its budget each
year to establish and maintain regional and local offices.
(b) POWERS.–In addition to the rights and powers provided by other provisions of this Act, the Association shall have the following powers:
(1) To represent the interests of consumers in financial-service matters before regulatory agencies, legislative bodies, the courts, and other public forums.
(2) To establish the policies of the Association regarding appearances before the regulatory agencies, the courts, and other public bodies, and regarding other
activities which the Association has the authority to perform under this Act.
(3) To maintain up-to-date membership rolls, and to keep them in confidence to the extent required by the provisions of this Act.
(4) To initiate, to intervene as a party, or otherwise participate on behalf of financial-service consumers in any regulatory proceeding which the Association
reasonably determines may affect their interests in financial-service matters.
(5) To sue on behalf of any member, group of members, or all members for judicial relief, including damages, in any court of competent jurisdiction in regard to
any financial-service matter.
(6) To generally assist financial-service consumers in the resolution of complaints involving financial service providers.
(7) To negotiate on behalf of financial-service consumers with financial-service providers.
(8) To conduct, support, and assist research, surveys, and investigations in financial-service matters.
(9) To establish regional and local offices and to provide any such offices with appropriate financial, technical and other assistance.
(10) To contract for services which cannot reasonably be performed by its employees.
(11) To solicit and accept gifts, loans, grants or
other aid in order to support activities concerning the interests of
financial-service consumers, except that the Association may not accept gifts,
loans or other aid from any financial-service providers or from any director,
employee or agent or member of the immediate family of a director, employee or
agent of any financial-service provider.
(c) STANDING.–The Association shall be deemed to have an interest sufficient to obtain judicial review or enforcement in any court of competent jurisdiction
of any regulatory decision or other regulatory action which the Association reasonably determines may affect the interest of consumers in financial service
SEC. 1207. THE INTERIM BOARD.–
(a) ESTABLISHMENT OF THE INTERIM BOARD.–The interim board of directors of the Association shall be appointed as follows: Three shall be appointed
by the President of the United States. Three shall be appointed by the Speaker of the House of Representatives to represent the following three categories of
citizens’ organizations: consumer groups; labor unions; and civil right groups. Three shall be appointed by the President Pro Tempore of the Senate to represent
the following three categories of citizens’ organizations: neighborhoods groups; elderly groups; and organizations representing low-income persons. One interim
directors shall be appointed the minority leader of the House of Representatives, and one shall be appointed by the minority leader of the Senate. Individuals
considered for appointment to the interim board shall, to the extent possible, represent different regions of the United States.
(b) ELIGIBILITY.–To qualify for nomination or appointment as an interim director representing a designated category of citizens’ organizations, an individual
must currently be an officer, employee, or member of a citizens’ organization within such category or previously have been an officer or employee of one or more
citizens’ organizations within such category for a cumulative period of at least 2 years.
(c) DUTIES OF INTERIM BOARD.–The interim board of directors shall have the following duties to perform:
(1) Within 60 days of appointment, incorporate the Association under the laws of the District of Columbia but subject to the provisions and limitations of this
(2) Manage the affairs of the Association until the first elected delegates and board of directors takes office.
(3) Inform the residents of the election districts of the existence, nature, and purpose of the Association, and encourage such persons to join the Association,
participate in its activities, and to contribute to the Association.
(4) Adopt procedures and standards, consistent with the requirements of this Act, for the nomination and election of the Association’s first elected delegates.
(5) Make all necessary preparations for the Association’s first election of delegates and oversee the election campaign and tally the votes.
(6) Conduct meetings of the interim board of directors at least once every three months, which shall comply with the open meeting requirement of section
1209(d)(5) of this Act.
(7) Keep minutes, financial books, and records which shall reflect the acts and transactions of the interim board of directors.
(8) Employ such interim staff as the interim directors
deem necessary to carry out their responsibilities under this act.
(d) APPLICABILITY OF CERTAIN OTHER PROVISIONS OF THIS ACT.–Interim directors shall be subject to the requirements of subsections (g), (h) and
(i) of section 1210 of this Act and subsections (d), (e), and (f) of section 1213 of this Act.
(e) LIMITATION ON AUTHORITY TO APPEAR BEFORE OTHER BODIES.–The interim board of directors shall not engage in representation or
intervention on behalf of consumers or otherwise before any regulatory, legislative, judicial, or other body, except to the extent necessary to maintain or exercise
the powers granted and the duties imposed upon it by this Act.
(f) CONDUCT FIRST GENERAL ELECTION.–
(1) IN GENERAL.–Once the membership of the Association reaches 100,000 or within 18 months of the appointment of the last interim director, whichever
occurs first, the interim board of directors shall set a date for the first general election of delegates and shall promptly notify every member.
(2) TIMELY ELECTION REQUIREMENT.–The date set for the election shall be not more than 90 days after such notification.
(3) EXCEPTION.–Notwithstanding the provisions of
paragraph (1) above, no election shall be held in an election district unless
there are at least 50 residents of in such district who are Association
SEC. 1208. INSERT PROVISIONS.–
(a) DEFINITIONS.–For purposes of this section–
(1) INSURED DEPOSITORY INSTITUTION.–The term “insured depository institution” means–
(A) an insured financial institution (as defined in the Federal Deposit Insurance Act); or
(B) an insured credit union (as defined in section
101(7) of the Federal Credit Union Act).
(2) DEPOSIT ACCOUNT.–The term “deposit account” means–
(A) any deposit (as defined in section 3(1) of the Federal Deposit Insurance Act);
(B) any deposit, certificate, share, or other such account which is authorized for savings Associations pursuant to section 5 of the Home Owners’ Loan Act of
(C) a member account (as defined in section 101 of
the Federal Credit Union Act or is eligible for insurance under section 201
of the Federal Credit Union Act.
(3) DEPOSIT ACCOUNT STATEMENT.–The term “deposit account statement” means a statement which–
(A) indicates the balance on a deposit account;
(B) involves an outstanding deposit account contract or agreement between a federally insured depository institution and a customer of such institution; and
(C) is mailed or otherwise distributed to such
(4) STATUTORY INSERT.–The term “statutory insert” means–
(A) except as provided in subsection (e), a statement containing in the following information:
“The Financial Consumers’ Association (FCA) is a consumer membership organization established under Federal law to inform and represent consumers on
financial service matters.
“FCA provides consumers with information and advice on a range of financial services, such as consumer loans, mortgage loans, credit cards, deposit accounts,
investment funds, securities and financial planning.
“FCA also represents consumer, local community, and broad public interests in financial service issues before regulatory agencies and legislative bodies.
“FCA is a democratically controlled consumer membership organization.
“Although the FCA has been established under Federal law, as a consumer membership organization, the Association is primarily supported by membership fees,
not public funds. Thus the FCA depends on its membership base for funding to undertake its information and representation activities.
“Anyone who is 18 years of age or older is entitled to become a member of FCA by paying the annual membership fee. The amount of the annual membership
fee is $10.00.
“You may become a member simply by filling out the attached application and mailing it and the membership fee to FCA in the attached preaddressed envelope.”
(B) an application for Association membership which requests the applicant’s name and indicates the annual membership fee; and
(C) a preaddressed, business reply envelope for
mailing the application and membership fee to the
(b) REQUIREMENTS APPLICABLE TO STATUTORY INSERTS.–The statutory insert required by this section shall be subject to the following
(1) The statutory insert shall contain only the statement, application and preaddressed business reply envelope specified in subsections (a) (4).
(2) The statement, application, and preaddressed business reply envelope shall be presented to the customer as a single document, although the document may be
separable into different parts by tearing along perforated lines.
(3) The statement and application shall be printed in at least ten point type.
(4) The Financial Consumers Association shall pay the
cost of printing and placing the statutory insert in all appropriate mailings
but shall not pay any postage costs if the insert weighs less than .35 ounces.
(c) STATUTORY INSERT REQUIRED TO BE INCLUDED IN STATEMENTS OF DEPOSITORY INSTITUTION.–
(1) IN GENERAL.–A Depository institution shall include, or cause its agent to include, a statutory insert or a Financial Consumers Association insert in each
mailing of a deposit account statement that it mails or otherwise distributes to its depositors.
(2) STATUTORY INSERT.–The Financial Consumers Association shall have the right to include statutory inserts in each depository account statement for each
deposit once each quarter.
(3) FINANCIAL CONSUMERS ASSOCIATION INSERTS.–In addition, the Financial Consumers Association shall have the right to include in the deposit
account statements referred to in paragraph (2) once each calendar quarter an insert that it prepares and furnishes to any institution required to carry the
(4) The insert furnished by the Association shall be limited to soliciting information and money from consumers and explaining:
(A) the purpose, history, nature, activities and achievements of the Association;
(B) that the Association is open to membership by residential consumers;
(C) that the Association is not connected to any financial services entity;
(D) that the Association is a nonprofit Association directed by its consumer members;
(E) the procedure for contributing to or becoming a member of the Association, and
(F) the yearly membership fee.
(5) Prior to furnishing an insert to a financial-
service entity for mailing, the Association shall certify that the insert (a)
is not false or misleading, and (b) contains and is limited to the information
permitted by this section. If a depository institution finds that the insert
may be false or misleading or is not limited to the information permitted by
this section, then it may return the insert to the Association for revision.
If the financial services entity and the Association are unable to agree on
said revision, the insert shall be submitted to the board of directors of the
Federal Deposit Insurance Corporation (FDIC). The FDIC shall review the insert
and make a determination promptly, but in no event later than thirty days
after receipt of the insert. The FDIC may disapprove the insert for mailing if
it finds that the insert is false or misleading or contains information not
permitted by this section.
SEC. 1209. DELEGATES.– Members shall have duly elected representatives who shall be elected in accordance with the provisions of section 1208 and the
(a) ONE DELEGATE TO BE ELECTED FROM EACH DISTRICT.–One delegate shall be elected by the Association members from each Association election
district, except that an election shall not take place in an election district if there is no candidate who has satisfied the qualification requirements of section 1208
of this Act.
(b) ELECTION DISTRICTS.–The Association election districts shall correspond to the United States Congressional districts. For the purposes of this Act, the
District of Columbia, Puerto Rico, Guam, Virgin Islands and American Samoa shall each be considered election district.
(c) DUTIES AND POWERS OF DELEGATES.–
(1) Each Delegate shall survey his or her constituency at least once per year to ascertain Member concerns. Delegates shall use the written surveys provided by
the Association for this purpose. Up to 50% of the survey questions may be provided by the delegate.
(2) To act as a liaison between the Board and Members in their Districts: to transmit to the Board comments, writings and suggestions concerning the
Association from Members in their Districts and to inform such Members of the Board’s response to their statements.
(3) To develop plans for organization of regional and local offices.
(4) To vote at the annual meeting of Delegates and at special meetings of Delegates called by the Board on amendments to the bylaws, the articles of
incorporation or on matters involving changes in major policies or operations of the Association.
(5) To approve rules proposed by the board of directors for the nomination and election of the directors.
(6) To vote on other items submitted to Delegates by the Board at annual and special meetings. A majority vote of the Delegates shall indicate approval by the
Delegates of any items submitted for its consideration.
(7) To carry out all other duties and exercise all
other powers accorded to Delegates under this Act.
(d) ANNUAL MEETINGS.–
(1) An annual meeting of Delegates shall be held in the month of January on a date and at a place within the United States to be determined by the Board of
Directors at least six months in advance of the meeting.
(2) All Delegates shall be eligible to attend, participate in, and vote in the annual meeting of Delegates. A majority of the Delegates shall constitute a quorum.
Each Delegate shall have one vote at such meetings.
(3) Items may be placed on the meeting’s agenda by the following methods:
(A) By request of any Director or Delegate not less than five days and not more than four months in advance of the date of such meeting; or
(B) By petition containing the valid signatures or at
least twenty (20) percent of the Members in any District or at least one
(one) percent of the total membership. Such petition must be filed with the
Board of Directors not less than five days and not more than four months in
advance of the date of such meeting.
(4) The form of the annual meeting of Delegates shall be as provided in the laws of the District of Columbia regarding nonprofit corporations; and
(5) The annual meeting of Delegates shall be open to the public. Members shall be given a reasonable opportunity at such meetings to present the comments,
criticisms and suggestions concerning the Association, but Members may not vote at such meetings.
(6) Complete minutes of the annual meetings shall be
kept and distributed to all depository libraries in the United States.
(e) TERMS OF OFFICE.–The term of office for a delegate shall be three years. No delegate shall serve more than two terms. Delegates of the Association shall
serve without compensation, except that they may be reimbursed for actual expenses incurred by them in the performance of their duties.
(f) VACANCY.–In the event that a delegate position becomes vacant, the board of directors shall install the person having the second highest vote total in the
last delegate election from the district with the vacancy. If this is impossible the board of directors by vote of no less than two-thirds of all directors, shall
appoint within 60 days a successor delegate from the same election district for the remainder of the current term. The person appointed by the Board of
Directors shall meet the qualifications for delegate.
(g) RECALL.–Delegate shall be removed from office whenever at least 40 percent of the members from the delegate’s election district who voted in the last
election have signed a petition for recall.
SEC. 1210. BOARD OF DIRECTORS.–
(a) MANAGEMENT OF ASSOCIATION.–The affairs of the Association shall be managed by a board of directors which shall be elected by delegates of the
Association in accordance with the provisions of section 1208. The of board of directors shall consist of 17 members.
(b) ONE-PERSON ONE-VOTE.–Each director shall have one vote on the board of directors.
(c) TERMS OF OFFICE.–The term of office for a director shall be three years, except as provided otherwise in this Act, and no director shall serve more than
two terms. Directors of the Association shall serve for a term without compensation, except that they may be reimbursed for actual expenses incurred by them in
the performance of their duties.
(d) RECALL.–A director shall be removed from the board of directors whenever at least 40 percent of the delegates or members of a board member’s election
district who voted in the last election have signed a petition for recall.
(e) POWERS AND DUTIES OF BOARD.–The board of directors shall, in addition to its other responsibilities, have the following powers and duties:
(1) Conduct meetings of the board of directors at least once every 3 months, which meetings shall be open to the public, unless the board of directors by a 2/3
majority votes to adjourn into executive session. The only matters which shall be discussed in executive session are personnel actions, potential or pending civil
or criminal proceedings involving the Association, and material which would result in an unwarranted invasion of personal privacy if discussed in open sessions.
(2) Conduct an annual delegate meeting.
(3) Keep minutes, financial records, and other records which shall reflect the acts and transactions of the board of directors.
(4) Cause the Association’s financial books to be audited by a qualified certified public accountant at least once each fiscal year.
(5) Prepare quarterly statements and an annual report indicating the substantive activities and financial operations of the Association.
(6) Approve the Bylaws of the Association consistent with the requirements of this Act. All rules approved by the Delegates pursuant to the provisions of this
Act shall be incorporated in the Bylaws.
(7) Make available to the public any of the following
documents prepared by or filed with the Association within the preceding five
years: minutes of the board of directors meeting, directors’ or executive
directors’ financial statements, candidates’ financial statements, and
(f) ELECTION OF OFFICERS.–At the first regular meeting of the board of directors at which a majority of its members are present subsequent to the
installation of new directors following each annual election, the board shall elect by majority vote of directors present and voting and from among the directors a
president, a vice-president, a secretary and a treasurer. The board shall also have the power to elect a comptroller and such other officers as it deems necessary.
(g) EXECUTIVE DIRECTOR OF ASSOCIATION.–
(1) IN GENERAL.–The board of directors shall hire and supervise an executive director for the Association.
(2) DUTIES OF EXECUTIVE DIRECTOR.–The executive director shall implement the policies established by the board of directors, employ and discharge
Association employees, and manage the offices, facilities, and employees of the Association.
(3) ELIGIBILITY STANDARDS.–Any applicant for the
position of executive director and each executive director shall satisfy the
requirements for director eligibility established by subsections (d), (e), and
(f) of section 1213.
(h) NO COMPENSATION FOR ASSOCIATION DIRECTORS.–An Association director may not receive any compensation for his or her services but shall be
reimbursed for wages actually lost in an amount not to exceed $160 per day and for necessary expenses, including travel expenses incurred in the discharge of
(i) BONDING REQUIREMENT FOR STAFF.–Any director or staff persons eligible to receive, handle, or disburse funds on behalf of the Association shall be
bonded. The cost of such bonds shall be paid for by the Association.
(j) ANNUAL FINANCIAL STATEMENTS OF DIRECTORS.–Each director and the executive director shall file annually with the board of directors a
director’s financial statement which shall include the same information required in section 1213(b) of this Act.
SEC. 1211. ELECTIONS OF DELEGATES.–
(a) VOTING STANDARD.–Each member of the Association shall be entitled to cast one vote for a candidate for delegate to represent his or her district.
Voting shall be by secret mail ballot.
(b) ELIGIBILITY STANDARDS FOR NOMINATION AS A DELEGATE.–To qualify for nomination as a candidate for election as a delegate of the
Association, a person must–
(1) be a member of the Association and a resident of the election district which he or she seeks to represent;
(2) submit to the Association, no less than 60 days and no more than 120 days prior to the election, a nomination petition signed by at least 25 Association
members from the election district which he or she seeks to represent;
(3) submit to the Association statements required by section 1213 of this Act; and
(4) satisfy all other requirements of this Act and any
applicable Bylaws of the Association.
(c) DISTRIBUTION OF ELECTION MATERIAL.–
(1) IN GENERAL.–The Association shall mail to each member the following documents concerning duly nominated candidates for election as a delegate:
(A) an official ballot listing all such candidates from the member’s election district;
(B) the candidate’s statement required by section
1213(a) for each such candidate from the member’s election district.
(2) SUMMARY AND COSTS.–The delegate summaries shall
have a uniform format and shall provide information on the same
characteristics for each candidate. The costs for all mailings described in
this subsection shall be borne by the Association.
(d) LIMITATION ON CAMPAIGN EXPENDITURES.–No candidate for election as a delegate or to the board of directors shall incur campaign expenditures
for any such election in an amount greater than the amount determined by multiplying the number of members in the candidate’s election district by 150 percent
of the cost of postage for a 1-ounce first class mailing.
(e) LIMITATION ON USE OF CAMPAIGN CONTRIBUTIONS.–No candidate for election as a delegate or to the board of directors may use any campaign
contribution for any purpose other than campaign expenditures. Any unused contributions shall be donated to the Association no later than 60 days after the
(f) LIMITATION ON AMOUNT OF CAMPAIGN CONTRIBUTIONS.–No candidate for election as a delegate shall accept more than $250 in campaign
contributions from any one contributor in any election.
(g) PROHIBITION ON ACCEPTANCE OF CERTAIN CONTRIBUTIONS.–A candidate for election as a delegate may not accept political action committee
SEC. 1212. ELECTIONS OF DIRECTORS.–
(a) ELECTION OF THE BOARD OF DIRECTORS.–Each delegate shall cast one vote for one candidate for the board of directors. The 17 candidates
receiving the largest number of votes shall become the directors. In the event of a tie involving the 17th position a runoff election shall be conducted. Any
delegate may vote for one candidate in the runoff election, and only those nominees involved in the tie that included the 17th position shall be eligible for the
(b) ELIGIBILITY STANDARDS FOR THE BOARD OF DIRECTORS.–To qualify for nomination as a candidate for election to the Board of Directors, a
(1) be a delegate;
(2) be nominated by 25 other delegates.
(c) APPLICABILITY TO ALL BOARD ELECTIONS.–The requirements of this section shall apply to the first election of directors conducted by the interim
board of directors pursuant to section 1208 of this Act as well as to all subsequent elections.
SEC. 1213. QUALIFICATIONS.–
(a) CANDIDATE’S STATEMENT.–Any person seeking nomination as a candidate for election as a delegate or to the board of directors shall file with the
Association, no less than 60 days and no more than 120 days prior to the election, a candidate’s statement. The contents of a candidate’s statement may not
contain false statements and the Association may, by bylaw or interim board of directors’ procedure, impose a uniform limitation on the length of all candidate’s
(b) FINANCIAL STATEMENT.–Any person seeking nomination as a candidate for election as a delegate or to the board of directors shall file with the
Association, no less than 60 days and no more than 120 days prior to the election, a financial statement and shall affirm in writing, that the information in the
statement is true and complete. A candidate’s financial statement shall include the following information for the candidate and his or her immediate family–
(1) income during each of the preceding 3 years, including, income derived from salary, commissions, real estate holdings, and financial assets, itemized by type
of source, identity of source, and amount;
(2) a detailed list of any business or financial relationships during the preceding five years with any financial service provider or organization of financial service
providers, including, but not limited to, an attorney, legislative agent, officer, or director relationship;
(3) a list of all corporate and organizational directorships or other offices and all fiduciary relationships currently held or held at any time during the preceding
(4) a list of all corporations in which the candidate holds securities worth $3,000 or more at current market value are and the dollar value of each such holding;
(5) a list of all creditors to whom outstanding debt of $3,000 or more is owed and the dollar amount of each such debt; and
(6) such other information as the board of directors
may require by bylaw.
(c) AFFIRMATION OF TRUTH OF STATEMENTS.–Each candidate for election as a delegate or to the board of directors shall affirm in writing, that the
information in his or her financial statement is true and complete and that he or she has complied with all the campaign contribution and campaign expenditure
requirements of this Act and any such bylaws of the Association. Each candidate shall furnish the board of directors with such information regarding campaign
contributions and expenditures as the board may request.
(d) INELIGIBILITY OF INTERIM DIRECTORS AND STAFF DURING FIRST ELECTION.–No interim director shall be eligible for election as a delegate
or to the board of directors during the first election. The executive director and other Association staff persons, including interim staff persons, shall not be
eligible for election as a delegate or to the board of directors while serving as executive director or staff person or for one year after such service is terminated.
(e) INELIGIBILITY OF DELEGATES AND DIRECTORS TO HOLD OTHER PUBLIC OFFICE.–No delegate or director shall hold any elective Federal,
State, or local office or be a candidate for such office, or be appointed to hold such office, unless such appointee receives no compensation other than
reimbursement of expenses.
(f) INELIGIBILITY OF OFFICERS, DIRECTORS, EMPLOYEES, AND SHAREHOLDERS OF FINANCIAL-SERVICE PROVIDERS.–No present
director, officer, or employee of a financial-service provider, or person who owns common stock or other securities of financial-service providers in an aggregate
amount in excess of $10,000, or agent, consultant, attorney, or accountant for a financial-service provider nor members of the immediate family members of such
persons shall be eligible to be a delegate or a director.
(g) INELIGIBILITY OF OFFICERS AND EMPLOYEES OF FEDERAL OR STATE DEPOSITORY INSTITUTION REGULATORY AGENCIES.–No
officer or employee of any State or Federal agency that regulates depository institution shall be eligible to be a delegate or a director.
SEC. 1214. BALLOT ISSUES.–
(a) Issues may be placed on a ballot for vote by the general membership, provided:
(1) a majority of the Board votes to place an issue before the membership for vote; or
(2) a petition, containing the valid signatures of at least twenty percent of the members in any district or at least one percent of the total membership, requesting
an issue be placed on a ballot is received by the Board; or,
(3) a majority of the Delegates vote to place an issue
before the membership for a vote.
(b) Upon certification of the required vote of the directors or delegates or of the required petition, the board shall place the issue on a special ballot and schedule
a date for a vote on the issue to be held within two months after receipt of the certification or petition.
(1) The Board shall send or have sent by mail to each Member, not later than 30 days after receipt of a petition or certification pursuant to this Section, an
official ballot containing the issue for membership vote.
(2) Each Member may cast a vote regarding the ballot issue by returning the ballot, properly marked, to the head office of the Association the date and time
fixed for the balloting pursuant to this subsection.
(3) Voting shall be by secret ballot.
(4) The Board shall tally votes with all reasonable
speed and shall inform the membership and delegates promptly of the outcome of
SEC. 1215. ACCESS TO MEMBER
MAILINGS.–The board of directors shall provide any Association member access
through Association mailings to the Association’s membership for Association
purposes, but shall not disclose the identity of Association members. No person
shall use any list of Members to the Association, or any part of such list, for
purposes other than the conduct of business of the Association as prescribed in
this Act. No person shall disclose any such list or part thereof to any other
individual who the person has reason to believe does not intend to use it for
the lawful purposes described in this Act.
SEC. 1216. PENALTIES.–
A violation of any provision of this Act by a regulated financial institution or officer, employee, or agent thereof shall be subject to a civil penalty of not more
than $10,000 for each violation to be levied by the Federal Deposit Insurance Corporation.
SEC. 1217. DISSOLUTION.–If, after the end of the 3-year period beginning on the date the Association is incorporated, the Association’s membership remains
below 5000 members during any 1-year period, the board of directors of the Association shall dissolve the Association. Upon the termination, dissolution, or
winding up of the Association in any manner or for any reason, voluntary or involuntary, its assets, if any, remaining after the payment or provision for payment
of all liabilities of the Association shall be distributed to, and only to, one or more charitable organizations. No part of the income or assets of the Association
shall inure to any of its members, directors, or officers, or be distributed to any of them during the life of the Association or upon its dissolution. At the time of
dissolution, any unexpended funds appropriated by Congress for the establishment of the organization shall be returned to the United States Treasury.
SEC. 1218. RELATIONSHIP TO EXISTING LAW.–
Nothing in this Act shall be construed to limit the right of any individual or group of individuals to initiate, intervene in, or otherwise participate in any
proceeding before a regulatory agency or court, nor to relieve any regulatory agency, court, or other public body of any obligation, or affect its discretion to
permit intervention or participation by a consumer or group or class of consumers or citizens in any proceeding or activity.
SEC. 1219. CONSTRUCTION.– The provisions of this Act shall be construed in such a manner as best to enable the Association to effectively represent and
protect the interests of the financial service consumers of the United States.
SEC. 1220. SEVERABILITY.–
If any provision of this Act shall be declared
unconstitutional or invalid, the other provisions shall remain in effect notwithstanding.
SEC. 1221. EFFECTIVE DATE.–
This Act shall become effective on the date of its