§ 4618. — Notice of classification and enforcement action.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4618]
TITLE 12--BANKS AND BANKING
CHAPTER 46--GOVERNMENT SPONSORED ENTERPRISES
SUBCHAPTER II--REQUIRED CAPITAL LEVELS FOR ENTERPRISES AND SPECIAL
ENFORCEMENT POWERS
Sec. 4618. Notice of classification and enforcement action
(a) Notice
Before taking any action referred to in subsection (b) of this
section, the Director shall provide to the enterprise written notice of
the proposed action, which states the reasons for the proposed action
and the information on which the proposed action is based.
(b) Applicability
The requirements of subsection (a) of this section shall apply to
the following actions:
(1) Classification or reclassification of an enterprise within a
particular capital classification under section 4614 of this title.
(2) Any discretionary supervisory action pursuant to section
4615 of this title.
(3) Any discretionary supervisory action pursuant to section
4616 of this title except a decision to appoint a conservator under
section 4616(b)(6) of this title.
Notice of classification under paragraph (1) and notice of supervisory
actions under paragraph (2) or (3) may be provided together in a single
notice under subsection (a) of this section.
(c) Response period
(1) In general
During the 30-day period beginning on the date that an
enterprise is provided notice under subsection (a) of this section
of a proposed action, the enterprise may submit to the Director any
information relevant to the action that the enterprise considers
appropriate for consideration by the Director in determining whether
to take such action. The Director may, at the discretion of the
Director, hold an informal administrative hearing to receive and
discuss such information and the proposed determination.
(2) Extended period
The Director may extend the period under paragraph (1) for good
cause for not more than 30 additional days.
(3) Shortened period
The Director may shorten the period under paragraph (1) if the
Director determines that the condition of the enterprise so requires
or the enterprise consents.
(4) Failure to respond
The failure of an enterprise to provide information during the
response period under this subsection (as extended or shortened)
shall waive any right of the enterprise to comment on the proposed
action of the Director.
(d) Consideration of information and determination
After the expiration of the response period under subsection (c) of
this section or upon receipt of information provided during such period
by the enterprise, whichever occurs earlier, the Director shall
determine whether to take the action proposed, taking into consideration
any relevant information submitted by the enterprise during the response
period. The Director shall provide written notice of a determination to
take action and the reasons for such determination to the enterprise,
the Committee on Banking, Finance and Urban Affairs of the House of
Representatives, and the Committee on Banking, Housing, and Urban
Affairs of the Senate. Such notice shall respond to any information
submitted during the response period.
(e) Effective date of actions
An action referred to in subsection (b) of this section shall take
effect upon receipt by the enterprise of notice of the determination of
the Director under subsection (d) of this section, unless otherwise
provided in such notice.
(Pub. L. 102-550, title XIII, Sec. 1368, Oct. 28, 1992, 106 Stat. 3980.)
Change of Name
Committee on Banking, Finance and Urban Affairs of House of
Representatives treated as referring to Committee on Banking and
Financial Services of House of Representatives by section 1(a) of Pub.
L. 104-14, set out as a note preceding section 21 of Title 2, The
Congress. Committee on Banking and Financial Services of House of
Representatives abolished and replaced by Committee on Financial
Services of House of Representatives, and jurisdiction over matters
relating to securities and exchanges and insurance generally transferred
from Committee on Energy and Commerce of House of Representatives by
House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001.
Section Referred to in Other Sections
This section is referred to in section 4617 of this title.
