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Title 12, Banks and BankingRelease 119-110

§4241 Authority to Enter Into Contracts for Private Counsel

Title 12 › CHAPTER 43 — ACTIONS AGAINST PERSONS COMMITTING BANK FRAUD CRIMES › SUBCHAPTER III — USE OF PRIVATE LEGAL RESOURCES › § 4241

Last updated Sep 22, 2026|Official source

Summary

The Attorney General may hire private lawyers to handle legal work for civil cases referred under sections 4201 or 4225. Those lawyers can investigate, negotiate, settle, sue, and carry out judgments. Each contract must include the items listed in section 4244 and any other terms the Attorney General thinks are needed to protect the United States. Contingency fees cannot exceed what private lawyers in the same area usually charge for similar work. Even though section 3302(b) of title 31 exists, the contract must say the lawyer’s fee is paid from the money or assets recovered and is based on a percentage of the civil penalties or assets collected.

Full Legal Text

Title 12, §4241

Banks and Banking, Source: USLM XML via OLRC

(a)In general
The Attorney General may enter into contracts retaining private counsel to furnish legal services, including representation in investigation, negotiation, compromise, settlement, litigation, and execution of judgments in the case of any civil action referred to in section 4201 of this title or section 4225 of this title.
(b)Terms and conditions
Each contract under subsection (a) shall include the provisions described in section 4244 of this title and such other terms and conditions as the Attorney General considers necessary and appropriate to protect the interests of the United States.
(c)Limitation of fee
The amount of the contingency fee payable for legal services furnished under a contract described in subsection (a) shall not exceed the contingency fee that counsel engaged in the private practice of law in the jurisdiction wherein the legal services are furnished typically charge clients for furnishing the same or comparable legal services.
(d)Contingent fees
Notwithstanding section 3302(b) of title 31, a contract under this section shall provide that a fee that the United States pays private counsel for services is payable from the amount recovered and shall be based on a percentage of the civil penalties or assets recovered.

Reference

Citations & Metadata

Citation

12 U.S.C. § 4241

Title 12, Banks and Banking

Last Updated

Sep 22, 2026

Release point: 119-110