12 U.S.C. § 4623: Judicial review of Director…

Summary

A regulated company that is not labeled "critically undercapitalized" can ask the U.S. Court of Appeals for the D.C. Circuit to review a Director’s classification or other supervisory action (but not the appointment of a conservator under sections 4616 or 4617 or actions under section 4619). The company must file a written petition in that court within 10 days after it gets written notice, asking the court to change, end, or cancel the Director’s action. The court can only order a change if, on the same record the Director used, it finds the Director acted in a random, unreasonable, or improper way or did not follow the law. Filing for review does not pause the Director’s action, and while review is pending the court cannot delay actions involving entities classed as significantly or critically undercapitalized or actions that cause such classifications. No other court can block or review these Director actions except as allowed here.

Title 12, §4623

Banks and Banking, Source: USLM XML via OLRC

(a)Jurisdiction

(1)Filing of petition

A regulated entity that is not classified as critically undercapitalized and is the subject of a classification under section 4614 of this title or a discretionary supervisory action taken under this subchapter by the Director (other than action to appoint a conservator under section 4616 or 4617 of this title or action under section 4619 of this title) may obtain review of the classification or action by filing, within 10 days after receiving written notice of the Director’s action, a written petition requesting that the classification or action of the Director be modified, terminated, or set aside.

(2)Place for filing

A petition filed pursuant to this subsection shall be filed in the United States Court of Appeals for the District of Columbia Circuit.

(b)Scope of review

The Court may modify, terminate, or set aside an action taken by the Director and reviewed by the Court pursuant to this section only if the court finds, on the record on which the Director acted, that the action of the Director was arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with applicable laws.

(c)Unavailability of stay

The commencement of proceedings for judicial review pursuant to this section shall not operate as a stay of any action taken by the Director. Pending judicial review of the action, the court shall not have jurisdiction to stay, enjoin, or otherwise delay any supervisory action taken by the Director with respect to a regulated entity that is classified as significantly or critically undercapitalized or any action of the Director that results in the classification of a regulated entity as significantly or critically undercapitalized.

(d)Limitation on jurisdiction

Except as provided in this section, no court shall have jurisdiction to affect, by injunction or otherwise, the issuance or effectiveness of any classification or action of the Director under this subchapter (other than appointment of a conservator under section 4616 or 4617 of this title or action under section 4619 1 of this title) or to review, modify, suspend, terminate, or set aside such classification or action.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 4619 of this title, referred to in subsecs. (a)(1) and (d), was repealed by Pub. L. 110–289, div. A, title I, § 1145(b)(4), July 30, 2008, 122 Stat. 2767.

Amendments

2008—Subsec. (a)(1). Pub. L. 110–289, § 1145(b)(3)(B), substituted “A regulated entity” for “An enterprise”. Subsec. (c). Pub. L. 110–289, § 1145(b)(3)(A), substituted “a regulated entity” for “an enterprise” in two places.

§4623 Judicial Review of Director Action