12 U.S.C. § 505 — Civil money penalty

submitted 113 years ago by Pub. L. 95-630 to r/title-12-BANKS-AND-BANKING · 590 words · no verdicts yet

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the actual law source: uscode.house.gov ↗public domain

(1) First tier

Any member bank which, and any institution-affiliated party (within the meaning of section 1813(u) of this title) with respect to such member bank who, violates any provision of this section, 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.

(2) Second tier

Notwithstanding paragraph (1), any member bank which, and any institution-affiliated party (within the meaning of section 1813(u) of this title) with respect to such member bank who—

(A)

(i)

commits any violation described in paragraph (1);

(ii)

recklessly engages in an unsafe or unsound practice in conducting the affairs of such member bank; or

(iii)

breaches any fiduciary duty;

(B)

which violation, practice, or breach—

(i)

is part of a pattern of misconduct;

(ii)

causes or is likely to cause more than a minimal loss to such member bank; or

(iii)

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.

(3) Third tier

Notwithstanding paragraphs (1) and (2), any member bank which, and any institution-affiliated party (within the meaning of section 1813(u) of this title) with respect to such member bank who—

(A)

knowingly—

(i)

commits any violation described in paragraph (1);

(ii)

engages in any unsafe or unsound practice in conducting the affairs of such member bank; or

(iii)

breaches any fiduciary duty; and

(B)

knowingly or recklessly causes a substantial loss to such member bank 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 paragraph (4) for each day during which such violation, practice, or breach continues.

(4) Maximum amounts of penalties for any violation described in paragraph (3)

The maximum daily amount of any civil penalty which may be assessed pursuant to paragraph (3) for any violation, practice, or breach described in such paragraph is—

(A)

in the case of any person other than a member bank, an amount not to exceed $1,000,000; and

(B)

in the case of a member bank, an amount not to exceed the lesser of—

(i)

$1,000,000; or

(ii)

1 percent of the total assets of such member bank.

(5) Assessment; etc.

Any penalty imposed under paragraph (1), (2), or (3) may be assessed and collected by the Board in the manner provided in subparagraphs (E), (F), (G), and (I) of section 1818(i)(2) of this title for penalties imposed (under such section) and any such assessment shall be subject to the provisions of such section.

(6) 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 1818(h) of this title shall apply to any proceeding under this section.

(7) Disbursement

All penalties collected under authority of this section shall be deposited into the Treasury.

(8) “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.

(9) Regulations

The Board shall prescribe regulations establishing such procedures as may be necessary to carry out this section.

Source credit: (Dec. 23, 1913, ch. 6, § 19(l), formerly § 19(j), as added Pub. L. 95–630, title I, § 102, Nov. 10, 1978, 92 Stat. 3642; renumbered § 19(l), Pub. L. 96–221, title I, § 105(f), Mar. 31, 1980, 94 Stat. 140; amended Pub. L. 97–320, title IV, § 424(a), (d)(2), (e), Oct. 15, 1982, 96 Stat. 1522, 1523; Pub. L. 101–73, title IX, § 907(h), Aug. 9, 1989, 103 Stat. 472.)

history & why it existsrecord from the source credit

1913Enacted · Pub. L. 95-630 · 92 Stat. 3642
1980Amended · Pub. L. 96-221 · 94 Stat. 140
1982Amended · Pub. L. 97-320 · 96 Stat. 1522, 1523
1989Amended · Pub. L. 101-73 · 103 Stat. 472

A history note hasn’t been published yet. The record shows enactment by Pub. L. 95-630 on 1913-12-23.

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