§4585 — Title 12 Banks and Banking | U.S. Code

Summary

The Director can fine an enterprise that fails to do certain required things. These include not filing a required report after being warned and given a chance to comment, not giving required information under certain statutes, or not sending, carrying out, or following housing plans or remedial orders tied to housing goals. Fines can be up to $100,000 per day for some failures and up to $50,000 per day for others. The Director must write rules for how fines are imposed. The enterprise must get a written notice and a chance for a hearing on the record. When setting the fine, the Director must consider things like how serious the violation is, past violations, ability to pay, public harm, benefits gained, deterrence, and time needed to meet the goal. If the enterprise won’t pay after the order is final, the Director can sue in U.S. District Court in the District of Columbia to collect the money and other relief; that suit can include the government’s legal costs. The Director may also reduce or cancel fines. Any money collected must go to the Housing Trust Fund.

Title 12, §4585

Banks and Banking — Source: USLM XML via OLRC

(a)The Director may impose a civil money penalty, in accordance with the provisions of this section, on any enterprise that has failed to—

(1)submit a report under section 4547 11 See References in Text note below. of this title, following a notice of such failure, an opportunity for comment by the enterprise, and a final determination by the Director;

(2)submit the information required under subsection (m) or (n) of section 1723a of this title or subsection (e) or (f) of section 1456 of this title;

(3)solely with respect to the housing goals established under section 4562(a) and 4563(a)(1) of this title, submit a housing plan or perform its responsibilities under a remedial order issued pursuant to section 4566(c) of this title within the required period; or

(4)solely with respect to the housing goals established under section 4562(a) and 4563(a)(1) of this title, comply with a housing plan for the enterprise under section 4566(c) of this title.

(b)The amount of a penalty under this section, as determined by the Director, may not exceed—

(1)for any failure described in paragraph (1), (5), or (6) of subsection (a), $100,000 for each day that the failure occurs; and

(2)for any failure described in paragraph (2), (3), or (4) of subsection (a), $50,000 for each day that the failure occurs.

(c)(1)The Director shall establish standards and procedures governing the imposition of civil money penalties under this section. Such standards and procedures—

(A)shall provide for the Director to notify the enterprise in writing of the determination of the Director to impose the penalty, which shall be made on the record;

(B)shall provide for the imposition of a penalty only after the enterprise has been given an opportunity for a hearing on the record pursuant to section 4582 of this title; and

(C)may provide for review by the Director of any determination or order, or interlocutory ruling, arising from a hearing.

(2)In determining the amount of a penalty under this section, the Director shall give consideration to factors including—

(A)the gravity of the offense;

(B)any history of prior offenses;

(C)ability to pay the penalty;

(D)injury to the public;

(E)benefits received;

(F)deterrence of future violations;

(G)the length of time that the enterprise should reasonably take to achieve the goal; and

(H)such other factors as the Director may determine, by regulation, to be appropriate.

(d)If an enterprise fails to comply with an order by the Director imposing a civil money penalty under this section, after the order is no longer subject to review, as provided in section 4582 and 4583 of this title, the Director may bring an action in the United States District Court for the District of Columbia to obtain a monetary judgment against the enterprise, and such other relief as may be available. The monetary judgment may, in the court’s discretion, include the attorneys’ fees and other expenses incurred by the United States in connection with the action. In an action under this subsection, the validity and appropriateness of the order imposing the penalty shall not be subject to review.

(e)The Director may compromise, modify, or remit any civil money penalty which may be, or has been, imposed under this section.

(f)The Director shall use any civil money penalties collected under this section to help fund the Housing Trust Fund established under section 4568 of this title.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 4547 of this title, referred to in subsec. (a)(1), was repealed by Pub. L. 110–289, div. A, title I, § 1104(b), July 30, 2008, 122 Stat. 2667.

Prior Provisions

A prior section 4585, Pub. L. 102–550, title XIII, § 1345, Oct. 28, 1992, 106 Stat. 3966, related to civil money penalties, prior to repeal by Pub. L. 110–289, div. A, title I, § 1130(d)(1), July 30, 2008, 122 Stat. 2709.

§4585 Civil Money Penalties