The Text of the Dodd-Frank Act
International Association of
Risk and Compliance Professionals (IARCP)
Dodd Frank Act Section 1002 
SEC. 1002. DEFINITIONS.
Except
as otherwise provided in this title, for purposes of this title,
the following definitions shall apply:
(1)
AFFILIATE.—The term ‘‘affiliate’’ means any person that
controls, is controlled by, or is under common control with
another person.
(2) BUREAU.—The
term ‘‘Bureau’’ means the Bureau of Consumer Financial Protection.
(3) BUSINESS OF INSURANCE.—The
term ‘‘business of insurance’’ means the writing of insurance or
the reinsuring of risks by an insurer, including all acts
necessary to such writing or reinsuring and the activities
relating to the writing of insurance or the reinsuring of risks
conducted by persons who act as, or are, officers, directors,
agents, or employees of insurers or who are other persons
authorized to act on behalf of such persons.
(4)
CONSUMER.—The term ‘‘consumer’’ means
an individual or an agent, trustee, or representative acting on
behalf of an individual.
(5) CONSUMER
FINANCIAL PRODUCT OR SERVICE.—The term ‘‘consumer financial
product or service’’ means any financial product or service that
is described in one or more categories under—
(A) paragraph
(15) and is offered or provided for use by consumers primarily for
personal, family, or household purposes; or
(B) clause (i),
(iii), (ix), or (x) of paragraph (15)(A), and is delivered,
offered, or provided in connection with a consumer financial
product or service referred to in subparagraph (A).
(6)
COVERED PERSON.—The term ‘‘covered
person’’ means—
(A) any person that engages in offering or providing a consumer
financial product or service; and
(B) any affiliate of a
person described in subparagraph (A) if such affiliate acts as a
service provider to such person.
(7)
CREDIT.—The term ‘‘credit’’ means the right granted by a
person to a consumer to defer payment of a debt, incur debt and
defer its payment, or purchase property or services and defer
payment for such purchase.
(8)
DEPOSIT-TAKING ACTIVITY.—The term ‘‘deposit-taking
activity’’ means—
(A) the acceptance of deposits,
maintenance of deposit accounts, or the provision of services
related to the acceptance of deposits or the maintenance of
deposit accounts;
(B) the acceptance of funds, the
provision of other services related to the acceptance of funds, or
the maintenance of member share accounts by a credit union; or
(C) the receipt of funds or the equivalent thereof, as the
Bureau may determine by rule or order, received or held by a
covered person (or an agent for a covered person) for the purpose
of facilitating a payment or transferring funds or value of funds
between a consumer and a third party.
(9)
DESIGNATED TRANSFER DATE.—The term
‘‘designated transfer date’’ means the date established under
section 1062.
(10) DIRECTOR.—The
term ‘‘Director’’ means the Director of the Bureau.
(11)
ELECTRONIC CONDUIT SERVICES.—The term
‘‘electronic conduit services’’—
(A) means the provision,
by a person, of electronic data transmission, routing,
intermediate or transient storage, or connections to a
telecommunications system or network; and
(B) does not
include a person that provides electronic conduit services if,
when providing such services, the person—
(i) selects or
modifies the content of the electronic data;
(ii)
transmits, routes, stores, or provides connections for electronic
data, including financial data, in a manner that such financial
data is differentiated from other types of data of the same form
that such person transmits, routes, or stores, or with respect to
which, provides connections; or
(iii) is a payee, payor,
correspondent, or similar party to a payment transaction with a
consumer.
(12) ENUMERATED CONSUMER
LAWS.—Except as otherwise specifically provided in section
1029, subtitle G or subtitle H, the term ‘‘enumerated consumer
laws’’ means—
(A) the Alternative Mortgage Transaction
Parity Act of 1982 (12 U.S.C. 3801 et seq.);
(B) the
Consumer Leasing Act of 1976 (15 U.S.C. 1667 et seq.);
(C)
the Electronic Fund Transfer Act (15 U.S.C. 1693 et seq.), except
with respect to section 920 of that Act;
(D) the Equal
Credit Opportunity Act (15 U.S.C. 1691 et seq.);
(E) the
Fair Credit Billing Act (15 U.S.C. 1666 et seq.);
(F) the
Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), except with
respect to sections 615(e) and 628 of that Act (15 U.S.C.
1681m(e), 1681w);
(G) the Home Owners Protection Act of
1998 (12 U.S.C. 4901 et seq.);
(H) the Fair Debt Collection
Practices Act (15 U.S.C. 1692 et seq.);
(I) subsections (b)
through (f) of section 43 of the Federal Deposit Insurance Act (12
U.S.C. 1831t(c)–(f));
(J) sections 502 through 509 of the
Gramm-Leach- Bliley Act (15 U.S.C. 6802–6809) except for section
505 as it applies to section 501(b);
(K) the Home Mortgage
Disclosure Act of 1975 (12 U.S.C. 2801 et seq.);
(L) the
Home Ownership and Equity Protection Act of 1994 (15 U.S.C. 1601
note);
(M) the Real Estate Settlement Procedures Act of
1974 (12 U.S.C. 2601 et seq.);
(N) the S.A.F.E. Mortgage
Licensing Act of 2008 (12 U.S.C. 5101 et seq.);
(O) the
Truth in Lending Act (15 U.S.C. 1601 et seq.);
(P) the
Truth in Savings Act (12 U.S.C. 4301 et seq.);
(Q) section
626 of the Omnibus Appropriations Act, 2009 (Public Law 111–8);
and
(R) the Interstate Land Sales Full Disclosure Act (15
U.S.C. 1701).
(13) FAIR LENDING.—The
term ‘‘fair lending’’ means fair, equitable, and nondiscriminatory
access to credit for consumers.
(14)
FEDERAL CONSUMER FINANCIAL LAW.—The term ‘‘Federal consumer
financial law’’ means the provisions of this title, the enumerated
consumer laws, the laws for which authorities are transferred
under subtitles F and H, and any rule or order prescribed by the
Bureau under this title, an enumerated consumer law, or pursuant
to the authorities transferred under subtitles F and H.
The term does not include the Federal Trade Commission Act.
(15) FINANCIAL PRODUCT OR SERVICE.—
(A) IN GENERAL.—The term
‘‘financial product or wservice’’ means—
(i) extending
credit and servicing loans, including acquiring, purchasing,
selling, brokering, or other extensions of credit (other than
solely extending commercial credit to a person who originates
consumer credit transactions);
(ii) extending or brokering
leases of personal or real property that are the functional
equivalent of purchase finance arrangements, if—
(I) the
lease is on a non-operating basis;
(II) the initial term of
the lease is at least 90 days; and
(III) in the case of a
lease involving real property, at the inception of the initial
lease, the transaction is intended to result in ownership of the
leased property to be transferred to the lessee, subject to
standards prescribed by the Bureau;
(iii) providing real
estate settlement services, except such services excluded under
subparagraph (C), or performing appraisals of real estate or
personal property;
(iv) engaging in deposit-taking
activities, transmitting or exchanging funds, or otherwise acting
as a custodian of funds or any financial instrument for use by or
on behalf of a consumer;
(v) selling, providing, or issuing
stored value or payment instruments, except that, in the case of a
sale of, or transaction to reload, stored value, only if the
seller exercises substantial control over the terms or conditions
of the stored value provided to the consumer where, for purposes
of this clause—
(I) a seller shall not be found to exercise
substantial control over the terms or conditions of the stored
value if the seller is not a party to the contract with the
consumer for the stored
value product, and another person is
principally responsible for establishing the terms or conditions
of the stored value; and
(II) advertising the nonfinancial
goods or services of the seller on the stored value card or device
is not in itself an exercise of substantial control over the terms
or conditions;
(vi) providing check cashing, check
collection, or check guaranty services;
(vii) providing
payments or other financial data processing products or services
to a consumer by any technological means, including processing or
storing financial or banking data for any payment instrument, or
through any payments systems or network used for processing
payments data, including payments made through an online banking
system or mobile telecommunications network, except that a person
shall not be deemed to be a covered person with respect to
financial data processing solely because the person—
(I) is
a merchant, retailer, or seller of any nonfinancial good or
service who engages in financial data processing by transmitting
or storing payments data about a consumer exclusively for purpose
of initiating payments instructions by the consumer to pay such
person for the purchase of, or to complete a commercial
transaction for, such nonfinancial good or service sold directly
by such person to the consumer; or
(II) provides access to
a host server to a person for purposes of enabling that person to
establish and maintain a website;
(viii) providing
financial advisory services (other than services relating to
securities provided by a person regulated by the Commission or a
person regulated by a State securities Commission, but only to the
extent that such person acts in a regulated capacity) to consumers
on individual financial matters or relating to proprietary
financial products or services (other than by publishing any bona
fide newspaper, news magazine, or business or financial
publication of general and regular circulation, including
publishing market data, news, or data analytics or investment
information
or recommendations that are not tailored to the
individual needs of a particular consumer), including—
(I)
providing credit counseling to any consumer; and
(II)
providing services to assist a consumer with debt management or
debt settlement, modifying the terms of any extension of credit,
or avoiding foreclosure;
(ix) collecting, analyzing,
maintaining, or providing consumer report information or other
account information, including information relating to the credit
history of consumers, used or expected to be used in connection
with any decision regarding the offering or provision of a
consumer financial product or service, except to the extent that—
(I) a person—
(aa) collects, analyzes, or maintains
information that relates solely to the transactions between a
consumer and such person;
(bb) provides the information
described in item (aa) to an affiliate of such person; or
(cc) provides information that is used or expected to be used
solely in any decision regarding the offering or provision of a
product or service that is not a consumer financial product or
service, including a decision for employment, government
licensing, or a residential lease or tenancy involving a consumer;
and
(II) the information described in subclause (I)(aa) is
not used by such person or affiliate in connection with any
decision regarding the offering or provision of a consumer
financial product or service to the consumer, other than credit
described in section 1027(a)(2)(A);
(x) collecting debt
related to any consumer financial product or service; and
(xi) such other financial product or service as may be defined by
the Bureau, by regulation, for purposes of this title, if the
Bureau finds that such financial product or service is—
(I)
entered into or conducted as a subterfuge or with a purpose to
evade any Federal consumer financial law; or
(II)
permissible for a bank or for a financial holding company to offer
or to provide under any provision of a Federal law or regulation
applicable to a bank or a financial holding company, and
has,
or likely will have, a material impact on consumers.
(B)
RULE OF CONSTRUCTION.—
(i)
IN GENERAL.—For purposes of
subparagraph (A)(xi)(II), and subject to clause (ii) of this
subparagraph, the following activities provided to a covered
person shall not, for purposes of this title, be considered
incidental or complementary to a financial activity permissible
for a financial holding company to engage in under any provision
of a Federal law or regulation applicable to a financial holding
company:
(I) Providing information products or services to
a covered person for identity authentication.
(II)
Providing information products or services for fraud or identify
theft detection, prevention, or investigation.
(III)
Providing document retrieval or delivery services.
(IV)
Providing public records information retrieval.
(V)
Providing information products or services for anti-money
laundering activities.
(ii)
LIMITATION.—Nothing in clause (i) may be construed as
modifying or limiting the authority of the Bureau to exercise any—
(I) examination or enforcement powers authority under this
title with respect to a covered person or service provider
engaging in an activity described in subparagraph (A)(ix); or
(II) powers authorized by this title to prescribe rules, issue
orders, or take other actions under any enumerated consumer law or
law for which the authorities are transferred under subtitle F or
H.
(C) EXCLUSIONS.—The term
‘‘financial product or service’’ does not include—
(i) the
business of insurance; or
(ii) electronic conduit services.
(16) FOREIGN EXCHANGE.—The term
‘‘foreign exchange’’ means the exchange, for compensation, of
currency of the United States or of a foreign government for
currency of another government.
(17)
INSURED CREDIT UNION.—The term ‘‘insured credit union’’ has
the same meaning as in section 101 of the Federal Credit Union Act
(12 U.S.C. 1752).
(18) PAYMENT
INSTRUMENT.—The term ‘‘payment instrument’’ means a check,
draft, warrant, money order, traveler’s check, electronic
instrument, or other instrument, payment of funds, or monetary
value (other than currency).
(19)
PERSON.—The term ‘‘person’’ means an individual,
partnership, company, corporation, association (incorporated or
unincorporated), trust, estate, cooperative organization, or other
entity.
(20) PERSON REGULATED BY THE
COMMODITY FUTURES TRADING COMMISSION.—The term ‘‘person
regulated by the Commodity Futures Trading Commission’’ means any
person that is registered, or required by statute or regulation to
be registered, with the Commodity Futures Trading Commission, but
only to the extent that the activities of such person are subject
to the jurisdiction of the Commodity Futures Trading Commission
under the Commodity Exchange Act.
(21)
PERSON REGULATED BY THE COMMISSION.—The
term
‘‘person regulated by the Commission’’ means a person
who is—
(A) a broker or dealer that is required to be
registered under the Securities Exchange Act of 1934;
(B)
an investment adviser that is registered under the Investment
Advisers Act of 1940;
(C) an investment company that is
required to be registered under the Investment Company Act of
1940, and any company that has elected to be regulated as a
business development company under that Act;
(D) a national
securities exchange that is required to be registered under the
Securities Exchange Act of 1934;
(E) a transfer agent that
is required to be registered under the Securities Exchange Act of
1934;
(F) a clearing corporation that is required to be
registered under the Securities Exchange Act of 1934;
(G)
any self-regulatory organization that is required to be registered
with the Commission;
(H) any nationally recognized
statistical rating organization that is required to be registered
with the Commission;
(I) any securities information
processor that is required to be registered with the Commission;
(J) any municipal securities dealer that is required to be
registered with the Commission;
(K) any other person that
is required to be registered with the Commission under the
Securities Exchange Act of 1934; and
(L) any employee,
agent, or contractor acting on behalf of, registered with, or
providing services to, any person described in any of
subparagraphs (A) through (K), but only to the extent that any
person described in any of subparagraphs (A) through (K), or the
employee, agent, or contractor of such person, acts in a regulated
capacity.
(22) PERSON REGULATED BY A
STATE INSURANCE REGULATOR.—
The term ‘‘person
regulated by a State insurance regulator’’ means any person that
is engaged in the business of insurance and subject to regulation
by any State insurance regulator, but only to the extent that such
person acts in such capacity.
(23)
PERSON THAT PERFORMS INCOME TAX PREPARATION ACTIVITIES FOR
CONSUMERS.—The term ‘‘person that performs income tax
preparation activities for consumers’’ means—
(A) any tax
return preparer (as defined in section 7701(a)(36) of the Internal
Revenue Code of 1986), regardless of whether compensated, but only
to the extent that the person acts in such capacity;
(B)
any person regulated by the Secretary under section 330 of title
31, United States Code, but only to the extent that the person
acts in such capacity; and
(C) any authorized IRS e-file
Providers (as defined for purposes of section 7216 of the Internal
Revenue Code of 1986), but only to the extent that the person acts
in such capacity.
(24) PRUDENTIAL
REGULATOR.—The term ‘‘prudential regulator’’ means—
(A) in the case of an insured depository institution or depository
institution holding company (as defined in section 3 of the
Federal Deposit Insurance Act), or subsidiary of such institution
or company, the appropriate Federal banking agency, as that term
is defined in section 3 of the Federal Deposit Insurance Act; and
(B) in the case of an insured credit union, the National
Credit Union Administration.
(25)
RELATED PERSON.—The term ‘‘related person’’—
(A)
shall apply only with respect to a covered person that is not a
bank holding company (as that term is defined in section 2 of the
Bank Holding Company Act of 1956), credit union, or depository
institution;
(B) shall be deemed to mean a covered person
for all purposes of any provision of Federal consumer financial
law; and
(C) means—
(i) any director, officer, or
employee charged with managerial responsibility for, or
controlling shareholder of, or agent for, such covered person;
(ii) any shareholder, consultant, joint venture partner, or
other person, as determined by the Bureau (by rule or on a
case-by-case basis) who materially participates in the conduct of
the affairs of such covered person; and
(iii) any
independent contractor (including any attorney, appraiser, or
accountant) who knowingly or recklessly participates in any—
(I) violation of any provision of law or regulation; or
(II) breach of a fiduciary duty.
(26)
SERVICE PROVIDER.—
(A) IN GENERAL.—The
term ‘‘service provider’’ means any person that provides a
material service to a covered person in connection with the
offering or provision by such covered person of a consumer
financial product or service, including a person that—(i)
participates in designing, operating, or maintaining the consumer
financial product or service; or
(ii) processes
transactions relating to the consumer financial product or service
(other than unknowingly or incidentally transmitting or processing
financial data in a manner that such data is undifferentiated from
other types of data of the same form as the person transmits or
processes).
(B) EXCEPTIONS.—The
term ‘‘service provider’’ does not include a person solely by
virtue of such person offering or providing to a covered person—
(i) a support service of a type provided to businesses
generally or a similar ministerial service; or
(ii) time or
space for an advertisement for a consumer financial product or
service through print, newspaper, or electronic media.
(C)
RULE OF CONSTRUCTION.—A person that
is a service provider shall be deemed to be a covered person to
the extent that such person engages in the offering or provision
of its own consumer financial product or service.
(27)
STATE.—The term ‘‘State’’ means any
State, territory, or possession of the United States, the District
of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of
the Northern Mariana Islands, Guam, American Samoa, or the United
States Virgin Islands or any federally recognized Indian tribe, as
defined by the Secretary of the Interior under section 104(a) of
the Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C.
479a–1(a)).
(28) STORED VALUE.—
(A) IN GENERAL.—The term ‘‘stored value’’ means funds
or monetary value represented in any electronic format, whether or
not specially encrypted, and stored or capable of storage on
electronic media in such a way as to be retrievable and
transferred electronically, and includes a prepaid debit card or
product, or any other similar product, regardless of whether the
amount of the funds or monetary value may be increased or
reloaded.
(B) EXCLUSION.—Notwithstanding
subparagraph (A), the term ‘‘stored value’’ does not include a
special purpose card or certificate, which shall be defined for
purposes of this paragraph as funds or monetary value represented
in any electronic format, whether or not specially encrypted, that
is—
(i) issued by a merchant, retailer, or other seller of
nonfinancial goods or services;
(ii) redeemable only for
transactions with the merchant, retailer, or seller of
nonfinancial goods or services or with an affiliate of such
person, which affiliate itself is a merchant, retailer, or seller
of nonfinancial goods or services;
(iii) issued in a
specified amount that, except in the case of a card or product
used solely for telephone services, may not be increased or
reloaded;
(iv) purchased on a prepaid basis in exchange for
payment; and
(v) honored upon presentation to such
merchant, retailer, or seller of nonfinancial goods or services or
an affiliate of such person, which affiliate itself is a merchant,
retailer, or seller of nonfinancial goods or services, only for
any nonfinancial goods or services.
(29)
TRANSMITTING OR EXCHANGING FUNDS.—The
term ‘‘transmitting or exchanging funds’’ means receiving
currency, monetary value, or payment instruments from a consumer
for the purpose of exchanging or transmitting the same by any
means, including transmission by wire, facsimile, electronic
transfer, courier, the Internet, or through bill payment services
or through other businesses that facilitate third-party transfers
within the United States or to or from the United States.
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