§164 Penalty for Failure to Make Reports

Summary

Associations must file truthful reports the Comptroller of the Currency requires and fix mistakes quickly. If an association that has procedures to prevent mistakes still makes an accidental error, sends a false report, or files only a little late, it can be fined up to $2,000 for each day the problem continues. The association must prove the error was accidental. If the failure or false report is not the kind described above, the fine can be up to $20,000 per day. If an association knowingly, or with reckless disregard for whether it is true, submits a false or misleading report, the Comptroller may fine up to $1,000,000 or 1 percent of the association’s total assets (whichever is less) for each day the problem continues. The Comptroller will assess and collect fines using the procedures in section 1818(i)(2). An association can ask for an agency hearing within 20 days after the notice of the penalty, and the procedures in section 1818(h) will apply.