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§ 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.



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