12 U.S.C. § 3909: General authorities

Summary

Federal banking agencies can define key words and must make rules and orders needed to carry out the law and to stop people from getting around it. They can apply the rules to affiliates of the insured banks they supervise to keep things uniform. "Affiliate" is used as in another law, except "member bank" is treated as an "insured depository institution." The agencies must set up uniform systems to use these powers. These powers add to, and do not limit, other federal enforcement powers, including the ability to require extra capital or reserves, and may be used to make banks comply. If a bank or anyone who helps run it (like an officer, director, employee, or agent) breaks the law or its rules or orders, they must pay up to $1,000 for each day the violation continues. The agency will treat the violation like a breach of a final enforcement order and will charge and collect the penalty using its normal enforcement procedures and the rights those procedures give to the parties.

Title 12, §3909

Banks and Banking, Source: USLM XML via OLRC

(a)Rules and regulations

(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)Systems uniformity

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

(c)Existing authorities

(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)Civil penalties; assessment and collection

(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