(a) First tier. Any member bank which, and any institution-affiliated
party (within the meaning of section 3(u) of the Federal Deposit Insurance
Act) with respect to such member bank who, violates any provision
of section 22, 23A, or 23B, or any regulation issued pursuant thereto,
shall forfeit and pay a civil penalty of not more than $5,000 for
each day during which such violation continues.
[12 USC 504(a). As
added by act of Nov. 10, 1978 (92 Stat. 3641) and amended by acts
of Oct. 15, 1982 (96 Stat. 1523) and Aug. 9, 1989 (103 Stat. 470).]
1-262.1
(b) Second tier. Notwithstanding
subsection (a), any member bank which, and any institution-affiliated
party (within the meaning of section 3(u) of the Federal Deposit Insurance
Act) with respect to such member bank who
(1) (A) commits
any violation described in subsection (a);
(B) recklessly engages in an unsafe
or unsound practice in conducting the affairs of such member bank;
or
(C) breaches any
fiduciary duty;
(2) which violation, practice, or breach—
(A) is part of a pattern of misconduct;
(B) causes or is likely to cause more
than a minimal loss to such member bank; or
(C) results in pecuniary gain or other
benefit to such party,
shall forfeit and pay a civil penalty of not more than
$25,000 for each day during which such violation, practice, or breach
continues.
[12 USC 504(b). As
added by act of Nov. 10, 1978 (92 Stat. 3641) and amended by act of
Aug. 9, 1989 (103 Stat. 470).]
1-262.2
(c) Third tier. Notwithstanding subsections
(a) and (b), any member bank which, and any institution-affiliated
party (within the meaning of section 3(u) of the Federal Deposit Insurance
Act) with respect to such member bank who—
(1) knowingly—
(A) commits any violation
described in subsection (a);
(B) engages in any unsafe or unsound
practice in conducting the affairs of such credit union; or
(C) breaches any fiduciary
duty; and
(2) knowingly or recklessly causes a substantial loss to such credit
union or a substantial pecuniary gain or other benefit to such party
by reason of such violation, practice, or breach,
shall forfeit and pay a civil penalty in an amount not
to exceed the applicable maximum amount determined under subsection
(d) for each day during which such violation, practice, or breach
continues.
[12 USC 504(c). As added by act of Nov. 10, 1978 (72 Stat. 3641)
and amended by act of Aug. 9, 1989 (103 Stat. 470).]
1-262.3
(d) Maximum amounts of penalties for any
violation described in subsection (c). The maximum daily amount
of any civil penalty which may be assessed pursuant to subsection
(c) for any violation, practice, or breach described in such subsection
is—
(1) in the case of any person
other than a member bank, an amount to not exceed $1,000,000; and
(2) in the case of a member
bank, an amount not to exceed the lesser of —
(A) $1,000,000;
or
(B) 1 percent
of the total assets of such member bank.
[12 USC 504(d).
As added by act of Nov. 10, 1978 (92 Stat. 3641) and amended by acts
of Oct. 15, 1982 (96 Stat. 1523) and Aug. 9, 1989 (103 Stat. 470).]
1-262.4
(e) Assessment, etc. Any
penalty imposed under subsection (a), (b), or (c) shall be assessed
and collected by
(1) in the case of a national bank, by
the Comptroller of the Currency; and
(2) in the case of a State member bank,
by the Board,
in the manner provided in
subparagraphs (E), (F), (G), and (I) of section 8(i)(2) of the Federal
Deposit Insurance Act for penalties imposed (under such section) and
any such assessment shall be subject to the provisions of such section.
[12 USC 504(e).
As added by act of Nov. 10, 1978 (92 Stat. 3641) and amended by act
of Aug. 9, 1989 (103 Stat. 470).]
1-262.5
(f) Hearing. The member bank or other person
against whom any penalty is assessed under this section shall be afforded
an agency hearing if such member bank or person submits a request
for such hearing within 20 days after the issuance of the notice of
assessment. Section 8(h) of the Federal Deposit Insurance Act shall
apply to any proceeding under this section.
[12 USC 504(f). As
added by act of Nov. 10, 1978 (92 Stat. 3641) and amended by act of
Aug. 9, 1989 (103 Stat. 470).]
1-262.6
(g) Disbursement. All penalties collected under
authority of this paragraph shall be deposited into the Treasury.
[12 USC 504(g).
As added by act of Nov. 10, 1978 (92 Stat. 3641) and amended by act
of Aug. 9, 1989 (103 Stat. 470).]
1-262.7
(h) Violate defined. For purposes of this section,
the term “violate” includes any action (alone or with another or others)
for or toward causing, bringing about, participating in, counseling,
or aiding or abetting a violation.
[12 USC 504(h). As
added by act of Aug. 9, 1989 (103 Stat. 470).]
1-262.8
(i) Regulations. The Comptroller of
the Currency and the Board shall prescribe regulations establishing
such procedures as may be necessary to carry out this section.
[12 USC 504(i).
As added by act of Aug. 9, 1989 (103 Stat. 470).]
1-262.9
(m)
* Notice under this section
after separation from service. The resignation, termination of
employment or participation, or separation of an institution-affiliated
party (within the meaning of section 3(u) of the Federal Deposit Insurance
Act) with respect to a member bank (including a separation caused
by the closing of such a bank) shall not affect the jurisdiction and
authority of the appropriate Federal banking agency to issue any notice
and proceed under this section against any such party, if such notice
is served before the end of the 6-year period beginning on the date
such party ceased to be such a party with respect to such bank (whether
such date occurs before, on, or after the date of the enactment of
this subsection).
[12 USC 504(j). As
added by act of Aug. 9, 1989 (103 Stat. 461).]
