§ 4632. — Temporary ceaseanddesist orders.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4632]
TITLE 12--BANKS AND BANKING
CHAPTER 46--GOVERNMENT SPONSORED ENTERPRISES
SUBCHAPTER III--ENFORCEMENT PROVISIONS
Sec. 4632. Temporary cease-and-desist orders
(a) Grounds for issuance and scope
Whenever the Director determines that any conduct or violation, or
threatened conduct or violation, specified in the notice of charges
served upon the enterprise, executive officer, or director pursuant to
section 4631(a) or (b) of this title, or the continuation thereof, is
likely--
(1) to cause insolvency,
(2) to cause a significant depletion of the core capital of the
enterprise, or
(3) otherwise to cause irreparable harm to the enterprise,
prior to the completion of the proceedings conducted pursuant to section
4631(c) of this title, the Director may issue a temporary order
requiring the enterprise, executive officer, or director to cease and
desist from any such conduct or violation and to take affirmative action
to prevent or remedy such insolvency, depletion, or harm pending
completion of such proceedings. Such order may include any requirement
authorized under section 4631(d) of this title.
(b) Effective date
An order issued pursuant to subsection (a) of this section shall
become effective upon service upon the enterprise, executive officer, or
director and, unless set aside, limited, or suspended by a court in
proceedings pursuant to subsection (d) of this section, shall remain in
effect and enforceable pending the completion of the proceedings
pursuant to such notice and shall remain effective until the Director
dismisses the charges specified in the notice or until superseded by a
cease-and-desist order issued pursuant to section 4631 of this title.
(c) Incomplete or inaccurate records
(1) Temporary order
If a notice of charges served under section 4631(a) or (b) of
this title specifies on the basis of particular facts and
circumstances that the books and records of the enterprise served
are so incomplete or inaccurate that the Director is unable, through
the normal supervisory process, to determine the financial condition
of the enterprise or the details or the purpose of any transaction
or transactions that may have a material effect on the financial
condition of that enterprise, the Director may issue a temporary
order requiring--
(A) the cessation of any activity or practice which gave
rise, whether in whole or in part, to the incomplete or
inaccurate state of the books or records; or
(B) affirmative action to restore the books or records to a
complete and accurate state.
(2) Effective period
Any temporary order issued under paragraph (1)--
(A) shall become effective upon service; and
(B) unless set aside, limited, or suspended by a court in
proceedings pursuant to subsection (d) of this section, shall
remain in effect and enforceable until the earlier of--
(i) the completion of the proceeding initiated under
section 4631 of this title in connection with the notice of
charges; or
(ii) the date the Director determines, by examination or
otherwise, that the books and records of the enterprise are
accurate and reflect the financial condition of the
enterprise.
(d) Judicial review
An enterprise, executive officer, or director that has been served
with a temporary order pursuant to this section may apply to the United
States District Court for the District of Columbia within 10 days after
such service for an injunction setting aside, limiting, or suspending
the enforcement, operation, or effectiveness of the order pending the
completion of the administrative proceedings pursuant to the notice of
charges served upon the enterprise, executive officer, or director under
section 4631(a) or (b) of this title. Such court shall have jurisdiction
to issue such injunction.
(e) Enforcement by Attorney General
In the case of violation or threatened violation of, or failure to
obey, a temporary order issued pursuant to this section, 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 for an
injunction to enforce such order or may, under the direction and control
of the Attorney General, bring such an action. If the court finds any
such violation, threatened violation, or failure to obey, the court
shall issue such injunction.
(Pub. L. 102-550, title XIII, Sec. 1372, Oct. 28, 1992, 106 Stat. 3988.)
Section Referred to in Other Sections
This section is referred to in sections 4631, 4635, 4636 of this
title.
