Sec. 9. Access to payments reserve accounts
379 words·~2 min read·
/bill/119/hr/8395/ih/section-9·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
To obtain access to a payments reserve account in the same manner and to the same extent as such access would be granted to an insured depository institution, a registered covered provider may submit a request to the Board of Governors for such access. The Board of Governors shall approve or deny such a request not later than 120 days after receipt of such request, which period may be extended by an additional 60 days. If the Board of Governors fails to act on such a request within such period, the request shall be deemed to be approved.
In unusual and exigent circumstances, the Board of Governors may issue a directive that has the effect of a cease and desist order against a registered covered provider that uses a payments reserve account for purposes of noncompliance with requirements of sections 4 and 5 of this Act, if the Board of Governors submits a written notice to the covered State regulator and the Comptroller not less than 48 hours before issuing such directive. Not later than 180 days after the date of the enactment of this Act and in consultation with the Conference of State Bank Supervisors, the Board of Governors shall issue rules to define the term unusual and exigent circumstances for purposes of paragraph (1).
After a directive described in paragraph
(1)has been issued with respect to a registered covered provider, such registered covered provider may object and present to the Board of Governors, in writing, the reasons why the directive should be modified or rescinded. If, not later than 10 days after the receipt of a response described in clause (i), the Board of Governors does not affirm, modify, or rescind the directive, the directive shall automatically lapse. If the Board of Governors affirms or modifies a directive pursuant to subparagraph (A), any affected party may immediately thereafter petition the United States district court for the district in which the main office of the affected party is located, or in the United States District Court for the District of Columbia, to stay, modify, terminate, or set aside the directive. Upon a showing of extraordinary cause, an affected party may petition for relief under clause
(i)without first pursuing or exhausting the administrative review under subparagraph (A).