
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 12USC4310]

 
                       TITLE 12--BANKS AND BANKING
 
                      CHAPTER 44--TRUTH IN SAVINGS
 
Sec. 4310. Civil liability


(a) Civil liability

    Except as otherwise provided in this section, any depository 
institution which fails to comply with any requirement imposed under 
this chapter or any regulation prescribed under this chapter with 
respect to any person who is an account holder is liable to such person 
in an amount equal to the sum of--
        (1) any actual damage sustained by such person as a result of 
    the failure;
        (2)(A) in the case of an individual action, such additional 
    amount as the court may allow, except that the liability under this 
    subparagraph shall not be less than $100 nor greater than $1,000; or
        (B) in the case of a class action, such amount as the court may 
    allow, except that--
            (i) as to each member of the class, no minimum recovery 
        shall be applicable; and
            (ii) the total recovery under this subparagraph in any class 
        action or series of class actions arising out of the same 
        failure to comply by the same depository institution shall not 
        be more than the lesser of $500,000 or 1 percent of the net 
        worth of the depository institution involved; and

        (3) in the case of any successful action to enforce any 
    liability under paragraph (1) or (2), the costs of the action, 
    together with a reasonable attorney's fee as determined by the 
    court.

(b) Class action awards

    In determining the amount of any award in any class action, the 
court shall consider, among other relevant factors--
        (1) the amount of any actual damages awarded;
        (2) the frequency and persistence of failures of compliance;
        (3) the resources of the depository institution;
        (4) the number of persons adversely affected; and
        (5) the extent to which the failure of compliance was 
    intentional.

(c) Bona fide errors

                          (1) General rule

        A depository institution may not be held liable in any action 
    brought under this section for a violation of this chapter if the 
    depository institution demonstrates by a preponderance of the 
    evidence that the violation was not intentional and resulted from a 
    bona fide error, notwithstanding the maintenance of procedures 
    reasonably adapted to avoid any such error.

                            (2) Examples

        Examples of a bona fide error include clerical, calculation, 
    computer malfunction and programming, and printing errors, except 
    that an error of legal judgment with respect to a depository 
    institution's obligation under this chapter is not a bona fide 
    error.

(d) No liability for overpayment

    A depository institution may not be held liable in any action under 
this section for a violation of this chapter if the violation has 
resulted in--
        (1) an interest payment to the account holder in an amount 
    greater than the amount determined under any disclosed rate of 
    interest applicable with respect to such payment; or
        (2) a charge to the consumer in an amount less than the amount 
    determined under the disclosed charge or fee schedule applicable 
    with respect to such charge.

(e) Jurisdiction

    Any action under this section may be brought in any United States 
district court, or in any other court of competent jurisdiction, within 
1 year after the date of the occurrence of the violation involved.

(f) Reliance on Board rulings

    No provision of this section imposing any liability shall apply to 
any act done or omitted in good faith in conformity with any regulation 
or order, or any interpretation of any regulation or order, of the 
Board, or in conformity with any interpretation or approval by an 
official or employee of the Board duly authorized by the Board to issue 
such interpretation or approval under procedures prescribed by the 
Board, notwithstanding, the fact that after such act or omission has 
occurred, such regulation, order, interpretation, or approval is 
amended, rescinded, or determined by judicial or other authority to be 
invalid for any reason.

(g) Notification of and adjustment for errors

    A depository institution shall not be liable under this section or 
section 4309 of this title for any failure to comply with any 
requirement imposed under this chapter with respect to any account if--
        (1) before--
            (A) the end of the 60-day period beginning on the date on 
        which the depository institution discovered the failure to 
        comply;
            (B) any action is instituted against the depository 
        institution by the account holder under this section with 
        respect to such failure to comply; and
            (C) any written notice of such failure to comply is received 
        by the depository institution from the account holder,

    the depository institution notifies the account holder of the 
    failure of such institution to comply with such requirement; and
        (2) the depository institution makes such adjustments as may be 
    necessary with respect to such account to ensure that--
            (A) the account holder will not be liable for any amount in 
        excess of the amount actually disclosed with respect to any fee 
        or charge;
            (B) the account holder will not be liable for any fee or 
        charge imposed under any condition not actually disclosed; and
            (C) interest on amounts in such account will accrue at the 
        annual percentage yield, and under the conditions, actually 
        disclosed (and credit will be provided for interest already 
        accrued at a different annual percentage yield and under 
        different conditions than the yield or conditions disclosed).

(h) Multiple interests in 1 account

    If more than 1 person holds an interest in any account--
        (1) the minimum and maximum amounts of liability under 
    subsection (a)(2)(A) of this section for any failure to comply with 
    the requirements of this chapter shall apply with respect to such 
    account; and
        (2) the court shall determine the manner in which the amount of 
    any such liability with respect to such account shall be distributed 
    among such persons.

(i) Continuing failure to disclose

       (1) Certain continuing failures treated as 1 violation

        Except as provided in paragraph (2), the continuing failure of 
    any depository institution to disclose any particular term required 
    to be disclosed under this chapter with respect to a particular 
    account shall be treated as a single violation for purposes of 
    determining the amount of any liability of such institution under 
    subsection (a) of this section for such failure to disclose.

                 (2) Subsequent failure to disclose

        The continuing failure of any depository institution to disclose 
    any particular term required to be disclosed under this chapter with 
    respect to a particular account after judgment has been rendered in 
    favor of the account holder in connection with a prior failure to 
    disclose such term with respect to such account shall be treated as 
    a subsequent violation for purposes of determining liability under 
    subsection (a) of this section.

          (3) Coordination with section 4309 of this title

        This subsection shall not limit or otherwise affect the 
    enforcement power under section 4309 of this title of any agency 
    referred to in subsection (a) of such section.

(Pub. L. 102-242, title II, Sec. 271, Dec. 19, 1991, 105 Stat. 2340; 
Pub. L. 102-550, title XVI, Sec. 1604(e)(2)(L)-(O), Oct. 28, 1992, 106 
Stat. 4084.)

                            Repeal of Section

        Pub. L. 104-208, div. A, title II, Sec. 2604(a), Sept. 30, 1996, 
    110 Stat. 3009-470, provided that, effective as of the end of the 5-
    year period beginning Sept. 30, 1996, this section is repealed.


                               Amendments

    1992--Subsecs. (a), (c), (d), (g) to (i)(2). Pub. L. 102-550 made 
technical amendment to references to ``this chapter'' wherever appearing 
to reflect correction of corresponding provision of original act.


                    Effective Date of 1992 Amendment

    Amendment by Pub. L. 102-550 effective as if included in the Federal 
Deposit Insurance Corporation Improvement Act of 1991, Pub. L. 102-242, 
as of Dec. 19, 1991, see section 1609(a) of Pub. L. 102-550, set out as 
a note under section 191 of this title.
