Legal Definitions - Dodd-Frank: Title XV - Miscellaneous Provisions

Dodd-Frank: Title XV - Miscellaneous Provisions refers to a section of the Dodd-Frank Wall Street Reform and Consumer Protection Act, a major piece of U.S. financial regulation passed in 2010. Title XV contains various provisions designed to protect U.S. taxpayers, promote transparency in certain industries, and address specific social and economic concerns.

Specifically, Title XV:

• Restricts International Monetary Fund (IMF) Loans: It requires the U.S. Executive Director at the IMF to oppose loans to foreign countries if those loans are unlikely to be repaid in full, especially if the country's public debt is very high and it doesn't qualify for other forms of international assistance. This aims to safeguard U.S. taxpayer money.
• Mandates Conflict Minerals Disclosure: It requires companies that use certain minerals (like tin, tantalum, tungsten, and gold) originating from the Democratic Republic of Congo or surrounding areas to disclose their use and report on their efforts to ensure these minerals do not fund armed conflict.
• Requires Mine Safety Disclosure: It compels mine operators to disclose information about health and safety violations, citations, and fatalities in their annual reports to the Securities and Exchange Commission (SEC).
• Demands Extractive Industries Payment Disclosure: It requires companies involved in the commercial development of oil, natural gas, or minerals to disclose payments made to U.S. or foreign governments in their annual reports.
• Directs Specific Studies: It mandated studies and reports to Congress by agencies like the Federal Deposit Insurance Corporation (FDIC) and the Comptroller General of the United States on topics such as deposit definitions and the effectiveness of Inspectors General.

Here are some examples illustrating how Dodd-Frank Title XV applies:

• Example 1: International Monetary Fund Loan Scrutiny

  Imagine a fictional country, "Atlantis," which has accumulated a public debt significantly larger than its annual economic output. Atlantis requests a substantial loan from the International Monetary Fund (IMF) to stabilize its economy. Under Dodd-Frank Title XV, the U.S. Executive Director at the IMF would be obligated to thoroughly evaluate Atlantis's ability to repay the loan. If the assessment indicates a high probability that the loan would not be repaid in full, the U.S. Director would be required to vote against the loan proposal. This action directly reflects Title XV's aim to protect U.S. taxpayer interests by preventing the approval of risky international loans.

• Example 2: Conflict Minerals Reporting for Electronics Manufacturers

  Consider "GlobalTech Solutions," a publicly traded company that manufactures high-end laptops and servers. These products contain components that use tin and tantalum, which are often sourced globally. Because tin and tantalum are designated "conflict minerals" under Title XV, GlobalTech Solutions must investigate its supply chain to determine if any of these minerals originated from the Democratic Republic of Congo or neighboring countries. The company would then be required to file a report with the SEC detailing its due diligence efforts to ensure that its mineral purchases do not inadvertently fund armed groups in that region. This demonstrates Title XV's role in promoting ethical sourcing and transparency in global supply chains.

• Example 3: Mine Safety Disclosure for a Coal Company

  "Black Diamond Mining Co." is a publicly traded corporation operating several coal mines across the United States. During a particular fiscal year, one of its mines experienced multiple safety violations cited by federal regulators, including issues with ventilation and roof supports, and tragically, a mining-related fatality. Under Dodd-Frank Title XV, Black Diamond Mining Co. is required to include detailed information about these incidents in its annual report filed with the SEC. This disclosure would include the total number of violations, citations, and the fatality, providing investors and the public with crucial information about the company's safety record and adherence to regulations.