(1) VIOLATIONS BY PERSONS OTHER THAN INSURED DEPOSITORY INSTITUTIONS OR THEIR AFFILIATES. (A) MATERIAL FAILURE TO COMPLY.-If the party to an agreement described in subsection (a) that is not an insured depository institution or affiliate willfully fails to comply with this section in a material way, as determined by the appropriate Federal banking agency, the agreement shall be unenforceable after the offending party has been given notice and a reasonable period of time to perform or comply. (B) DIVERSION OF FUNDS OR RESOURCES.—If funds or resources received under an agreement described in subsection (a) have been diverted contrary to the purposes of the agreement for personal financial gain, the appropriate Federal banking agency with supervisory responsibility over the insured depository institution may impose either or both of the following penalties: (i) Disgorgement by the offending individual of funds received under the agreement. (ii) Prohibition of the offending individual from being a party to any agreement described in subsection (a) for a period of not to exceed 10 years. (2) DESIGNATION OF SUCCESSOR NONGOVERNMENTAL PARTY.-If an agreement described in subsection (a) is found to be unenforceable under this subsection, the appropriate Federal banking agency may assist the insured depository institution in identifying a successor nongovernmental party to assume the responsibilities of the agreement. (3) INADVERTENT OR DE MINIMIS REPORTING ERRORS.-An error in a report filed under subsection (c) that is inadvertent or de minimis shall not subject the filing party to any penalty. (g) RULE OF CONSTRUCTION.-No provision of this section shall be construed as authorizing any appropriate Federal banking agency to enforce the provisions of any agreement described in subsection (a). (1) IN GENERAL.-Each appropriate Federal banking agency shall prescribe regulations, in accordance with paragraph (4), requiring procedures reasonably designed to ensure and monitor compliance with the requirements of this section. (2) PROTECTION OF PARTIES.-In carrying out paragraph (1), each appropriate Federal banking agency shall (A) ensure that the regulations prescribed by the agency do not impose an undue burden on the parties and that proprietary and confidential information is protected; and (B) establish procedures to allow any nongovernmental entity or person who is a party to a large number of agreements described in subsection (a) to make a single or consolidated filing of a report under subsection (c) to an insured depository institution or an appropriate Federal banking agency. (3) PARTIES NOT SUBJECT TO REPORTING REQUIREMENTS.— The Board of Governors of the Federal Reserve System may prescribe regulations (A) to prevent evasions of subsection (e)(1)(B)(iii); and (B) to provide further exemptions under such subsection, consistent with the purposes of this section. (4) COORDINATION, CONSISTENCY, AND COMPARABILITY.—In carrying out paragraph (1), each appropriate Federal banking agency shall consult and coordinate with the other such agencies for the purposes of assuring, to the extent possible, that the regulations prescribed by each such agency are consistent and comparable with the regulations prescribed by the other such agencies. |