§3909 — Title 12 Banks and Banking | U.S. Code

Summary

Federal bank regulators can write rules, set definitions, and issue orders needed to carry out this law and to stop people from getting around it. They may apply the law to a bank’s affiliates when the regulator supervises those affiliates, so the law is applied the same way. “Affiliate” means what section 371c says, except treat “member bank” there as an “insured depository institution” under section 1813(c)(2). The regulators must set up uniform systems to use these powers. These powers are extra and do not limit other regulator authorities, including section 1818 or the power to require more capital or reserves. If a bank or any person running it breaks the law or related rules or orders, they must pay up to $1,000 per day for each day of the violation. Those violations count as breaking a final order under section 1818(i)(2), and the appropriate regulator will assess and collect the penalty using the procedures and rights in that section.

Title 12, §3909

Banks and Banking — Source: USLM XML via OLRC

(a)(1)The appropriate Federal banking agencies are authorized to interpret and define the terms used in this chapter, and each appropriate Federal banking agency shall prescribe rules or regulations or issue orders as necessary to effectuate the purposes of this chapter and to prevent evasions thereof.

(2)The appropriate Federal banking agency is authorized to apply the provisions of this chapter to any affiliate of an insured depository institution, but only to affiliates for which it is the appropriate Federal banking agency, in order to promote uniform application of this chapter or to prevent evasions thereof.

(3)For purposes of this section, the term “affiliate” shall have the same meaning as in section 371c of this title, except that the term “member bank” in such section shall be deemed to refer to an “insured depository institution”, as such term is defined in section 1813(c)(2) of this title.

(b)The appropriate Federal banking agencies shall establish uniform systems to implement the authorities provided under this chapter.

(c)(1)The powers and authorities granted in this chapter shall be supplemental to and shall not be deemed in any manner to derogate from or restrict the authority of each appropriate Federal banking agency under section 1818 of this title or any other law including the authority to require additional capital or reserves.

(2)Any such authority may be used by any appropriate Federal banking agency to ensure compliance by a banking institution with the provisions of this chapter and all rules, regulations, or orders issued pursuant thereto.

(d)(1)Any banking institution which violates, or any officer, director, employee, agent, or other person participating in the conduct of the affairs of such banking institution, who violates any provision of this chapter, or any rule, regulation, or order, issued under this chapter, shall forfeit and pay a civil penalty of not more than $1,000 per day for each day during which such violation continues.

(2)Such violations shall be deemed to be a violation of a final order under section 1818(i)(2) of this title and the penalty shall be assessed and collected by the appropriate Federal banking agency under the procedures established by, and subject to the rights afforded to parties in, such section.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2006—Subsec. (a)(2). Pub. L. 109–351, § 713(b)(1), substituted “insured depository institution” for “insured bank”. Subsec. (a)(3). Pub. L. 109–351, § 713(b)(2), substituted “an ‘insured depository institution’, as such term is defined in section 1813(c)(2)” for “an ‘insured bank’, as such term is used in section 1813(h)”.

§3909 General authorities

Summary

Title 12, §3909

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata