§ 4636. — Civil money penalties.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4636]
TITLE 12--BANKS AND BANKING
CHAPTER 46--GOVERNMENT SPONSORED ENTERPRISES
SUBCHAPTER III--ENFORCEMENT PROVISIONS
Sec. 4636. Civil money penalties
(a) In general
The Director may impose a civil money penalty in accordance with
this section on any enterprise, or any executive officer or director of
any enterprise, that--
(1) violates any provision of this chapter, the Federal National
Mortgage Association Charter Act [12 U.S.C. 1716 et seq.], the
Federal Home Loan Mortgage Corporation Act [12 U.S.C. 1451 et seq.],
or any order, rule, or regulation under any such chapter or Act,
except that the Director may not enforce compliance with any housing
goal established under subpart 2 of part B of subchapter I of this
chapter, with section 4566 or 4567 of this title, or with subsection
(m) or (n) of section 309 of the Federal National Mortgage
Association Charter Act [12 U.S.C. 1723a(m), (n)] or subsection (e)
or (f) of section 307 of the Federal Home Loan Mortgage Corporation
Act [12 U.S.C. 1456(e), (f)];
(2) violates any final or temporary order issued pursuant to
section 4615, 4616, 4631, or 4632 of this title;
(3) violates any written agreement between the enterprise and
the Director; or
(4) engages in any conduct that causes or is likely to cause a
loss to the enterprise.
(b) Amount of penalty
(1) First tier
The Director may impose a penalty on an enterprise for any
violation described in paragraphs (1) through (3) of subsection (a)
of this section. The amount of a penalty under this paragraph shall
not exceed $5,000 for each day that a violation continues.
(2) Second tier
The Director may impose a penalty on an executive officer or
director in an amount not to exceed $10,000, or on an enterprise in
an amount not to exceed $25,000, for each day that a violation or
conduct described in subsection (a) of this section continues, if
the Director finds that the violation or conduct--
(A) is part of a pattern of misconduct; or
(B) involved recklessness and caused or would be likely to
cause a material loss to the enterprise.
(3) Third tier
The Director may impose a penalty on an executive officer or
director in an amount not to exceed $100,000, or on an enterprise in
an amount not to exceed $1,000,000, for each day that a violation or
conduct described in subsection (a) of this section continues, if
the Director finds that the violation or conduct was knowing and
caused or would be likely to cause a substantial loss to the
enterprise.
(c) Procedures
(1) Establishment
The Director shall establish standards and procedures governing
the imposition of civil money penalties under subsections (a) and
(b) of this section. Such standards and procedures--
(A) shall provide for the Director to notify the enterprise
in writing of the Director's determination to impose the
penalty, which shall be made on the record;
(B) shall provide for the imposition of a penalty only after
the enterprise, executive officer, or director has been given an
opportunity for a hearing on the record pursuant to section 4633
of this title; and
(C) may provide for review by the Director of any
determination or order, or interlocutory ruling, arising from a
hearing.
(2) Factors in determining amount of penalty
In determining the amount of a penalty under this section, the
Director shall give consideration to such factors as the gravity of
the violation, any history of prior violations, the effect of the
penalty on the safety and soundness of the enterprise, any injury to
the public, any benefits received, and deterrence of future
violations, and any other factors the Director may determine by
regulation to be appropriate.
(3) Review of imposition of penalty
The order of the Director imposing a penalty under this section
shall not be subject to review, except as provided in section 4634
of this title.
(d) Action to collect penalty
If an enterprise, executive officer, or director fails to comply
with an order of the Director imposing a civil money penalty under this
section, after the order is no longer subject to review as provided
under subsection (c)(1) of this section and section 4634 of this title,
the Director may request the Attorney General of the United States to
bring an action in the United States District Court for the District of
Columbia to obtain a monetary judgment against the enterprise, executive
officer, or director and such other relief as may be available, or may,
under the direction and control of the Attorney General, bring such an
action. The monetary judgment may, in the discretion of the court,
include any attorneys fees and other expenses incurred by the United
States in connection with the action. In an action under this
subsection, the validity and appropriateness of the order of the
Director imposing the penalty shall not be subject to review.
(e) Settlement by Director
The Director may compromise, modify, or remit any civil money
penalty which may be, or has been, imposed under this section.
(f) Availability of other remedies
Any civil money penalty under this section shall be in addition to
any other available civil remedy and may be imposed whether or not the
Director imposes other administrative sanctions.
(g) Prohibition of reimbursement or indemnification
An enterprise may not reimburse or indemnify any individual for any
penalty imposed under subsection (b)(3) of this section.
(h) Deposit of penalties
The Director shall deposit any civil money penalties collected under
this section into the general fund of the Treasury.
(i) Applicability
A penalty under this section may be imposed only for conduct or
violations under subsection (a) of this section occurring after October
28, 1992.
(Pub. L. 102-550, title XIII, Sec. 1376, Oct. 28, 1992, 106 Stat. 3991.)
References in Text
This chapter, referred to in subsec. (a)(1), was in the original
``this title'', meaning title XIII of Pub. L. 102-550, Oct. 28, 1992,
106 Stat. 3941, which is classified principally to this chapter. For
complete classification of title XIII to the Code, see Short Title note
set out under section 4501 of this title and Tables.
The Federal National Mortgage Association Charter Act, referred to
in subsec. (a)(1), is title III of act June 27, 1934, ch. 847, 48 Stat.
1252, as amended, which is classified generally to subchapter III
(Sec. 1716 et seq.) of chapter 13 of this title. For complete
classification of this Act to the Code, see Short Title note set out
under section 1716 of this title and Tables.
The Federal Home Loan Mortgage Corporation Act, referred to in
subsec. (a)(1), is title III of Pub. L. 91-351, July 24, 1970, 84 Stat.
451, as amended, which is classified generally to chapter 11A (Sec. 1451
et seq.) of this title. For complete classification of this Act to the
Code, see Short Title and Statement of Purpose note set out under
section 1451 of this title and Tables.
Section Referred to in Other Sections
This section is referred to in sections 4631, 4633, 4634, 4635 of
this title.