US CODE: Title 12,4636. Civil money penalties

TITLE 12 > CHAPTER 46 > SUBCHAPTER III > § 4636

§ 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.

(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.

Notes
1 Update(s)
Parallel authorities (CFR)
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