§ 4632. Temporary cease-and-desist orders

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1992

   Federal Housing Enterprises Financial Safety and Soundness Act of 1992

   Pub. L. 102–550 title XIII § 1372 · 106 Stat. 3672

   Enacted · 12 U.S.C. § 4632

   Pub. L. 102–550, title XIII, § 1372, Oct. 28, 1992, 106 Stat. 3988

   Source evidence

   Code source credit
   Pub. L. 102–550, title XIII, § 1372, Oct. 28, 1992, 106 Stat. 3988

   Enacted provision · exact public law section
   SEC. 1372. TEMPORARY CEASE-AND-DESIST ORDERS. (a) Grounds for Issuance and Scope.— Whenever the Director determines that any conduct or violation, or threatened conduct or violation, specified in the notice of charges served upon the enterprise, executive officer, or director pursuant to section 1371 (a) or (b), or the continuation thereof, is likely— (1) to cause insolvency, (2) to cause a significant depletion of the core capital of the enterprise, or (3) otherwise to cause irreparable harm to the enterprise, prior to the completion of the proceedings conducted pursuant to section 1371(c), the Director may issue a temporary order requiring the enterprise, executive officer, or director to cease and desist from any such conduct or violation and to take affirmative action to prevent or remedy such insolvency, depletion, or harm pending completion of such proceedings. Such order may include any requirement authorized under section 1371(d). (b) Effective Date.— An order issued pursuant to subsection (a) shall become effective upon service upon the enterprise, executive officer, or director and, unless set aside, limited, or suspended by a court in proceedings pursuant to subsection (d), shall remain in effect and enforceable pending the completion of the proceedings Pursuant to such notice and shall remain effective until the Director dismisses the charges specified in the notice or until superseded by a cease-and-desist order issued pursuant to section 1371. (c) Incomplete or Inaccurate Records.— (1) Temporary order.— If a notice of charges served under section 1371 (a) or (b) specifies on the basis of particular facts and circumstances that the books and records of the enterprise served are so incomplete or inaccurate that the Director is unable, through the normal supervisory process, to determine the financial condition of the enterprise or the details or the purpose of any transaction or transactions that may have a material effect on the financial condition of that enterprise, the Director may issue a temporary order requiring— (A) the cessation of any activity or practice which gave rise, whether in whole or in part, to the incomplete or inaccurate state of the books or records; or (B) affirmative action to restore the books or records to a complete and accurate state. (2) Effective period.— Any temporary order issued under paragraph (1)— (A) shall become effective upon service; and (B) unless set aside, limited, or suspended by a court in proceedings pursuant to subsection (d), shall remain in effect and enforceable until the earlier of— (i) the completion of the proceeding initiated under section 1371 in connection with the notice of charges; or (ii) the date the Director determines, by examination or otherwise, that the books and records of the enterprise are accurate and reflect the financial condition of the enterprise. (d) Judicial Review.— An enterprise, executive officer, or director that has been served with a temporary order pursuant to this section may apply to the United States District Court for the District of Columbia within 10 days after such service for an injunction setting aside, limiting, or suspending the enforcement, operation, or effectiveness of the order pending the completion of the administrative proceedings pursuant to the notice of charges served upon the enterprise, executive officer, or director under section 1371 (a) or (b). Such court shall have jurisdiction to issue such injunction. (e) Enforcement by Attorney General.— In the case of violation or threatened violation of, or failure to obey, a temporary order issued pursuant to this section, the Director may request the Attorney General of the United States to bring an action in the United States District Court for the District of Columbia for an injunction to enforce such order or may, under the direction and control of the Attorney General, bring such an action. If the court finds any such violation, threatened violation, or failure to obey, the court shall issue such injunction.

2. 2008

   Federal Housing Finance Regulatory Reform Act of 2008

   Pub. L. 110–289 § 1152(1) · 122 Stat. 2654

   1. Added · 12 U.S.C. § 4632(a)

      Pub. L. 110–289, § 1152(1), added subsec. (a)

   2. Struck · 12 U.S.C. § 4632(a)

      Pub. L. 110–289, § 1152(1), struck out former subsec. (a) which related to grounds for issuance and scope of temporary cease-and-desist orders

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 110–289, § 1152(1), added subsec. (a) and struck out former subsec. (a) which related to grounds for issuance and scope of temporary cease-and-desist orders.

   Enacted provision · exact public law section
   (1) by striking subsection (a) and inserting the following: “(a) Grounds for Issuance.— “(1) In general.— If the Director determines that the actions specified in the notice of charges served upon a regulated entity or any entity-affiliated party pursuant to section 1371(a), or the continuation thereof, is likely to cause insolvency or significant dissipation of assets or earnings of that entity, or is likely to weaken the condition of that entity prior to the completion of the proceedings conducted pursuant to sections 1371 and 1373, the Director may— “(A) issue a temporary order requiring that regulated entity or entity-affiliated party to cease and desist from any such violation or practice; and “(B) require that regulated entity or entity-affiliated party to take affirmative action to prevent or remedy such insolvency, dissipation, condition, or prejudice pending completion of such proceedings. “(2) Additional requirements.— An order issued under paragraph (1) may include any requirement authorized under subsection 1371(d).” ;

3. 2008

   Federal Housing Finance Regulatory Reform Act of 2008

   Pub. L. 110–289 § 1152(2) · 122 Stat. 2654

   1. Substituted · 12 U.S.C. § 4632(b)

      Pub. L. 110–289, § 1152(2), substituted “director, or entity-affiliated party” for “or director”

   2. Substituted · 12 U.S.C. § 4632(b)

      Pub. L. 110–289, § 1152(2), substituted “regulated entity” for “enterprise”

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 110–289, § 1152(2), substituted “director, or entity-affiliated party” for “or director” and “regulated entity” for “enterprise”.

   Enacted provision · exact public law section
   (2) in subsection (b)— (A) by striking “or director” and inserting “director, or entity-affiliated party”; and (B) by striking “enterprise” each place that term appears and inserting “regulated entity”;

4. 2008

   Federal Housing Finance Regulatory Reform Act of 2008

   Pub. L. 110–289 § 1152(3) · 122 Stat. 2654

   Substituted · 12 U.S.C. § 4632(c)

   Pub. L. 110–289, § 1152(3), substituted “regulated entity” for “enterprise” wherever appearing

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 110–289, § 1152(3), substituted “regulated entity” for “enterprise” wherever appearing.

   Enacted provision · exact public law section
   (3) in subsection (c), by striking “enterprise” each place that term appears and inserting “regulated entity”;

5. 2008

   Federal Housing Finance Regulatory Reform Act of 2008

   Pub. L. 110–289 § 1152(4) · 122 Stat. 2654

   1. Substituted · 12 U.S.C. § 4632(d)

      Pub. L. 110–289, § 1152(4), substituted “A regulated entity” for “An enterprise” in two places

   2. Substituted · 12 U.S.C. § 4632(d)

      Pub. L. 110–289, § 1152(4), substituted “director, or entity-affiliated party” for “or director” in two places

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 110–289, § 1152(4), substituted “A regulated entity” for “An enterprise” and “director, or entity-affiliated party” for “or director” in two places.

   Enacted provision · exact public law section
   (4) in subsection (d)— (A) by striking “or director” each place that term appears and inserting “director, or entity-affiliated party”; and (B) by striking “An enterprise” and inserting “A regulated entity”; and

6. 2008

   Federal Housing Finance Regulatory Reform Act of 2008

   Pub. L. 110–289 § 1152(5)(B) · 122 Stat. 2654

   Struck · 12 U.S.C. § 4632(e)

   Pub. L. 110–289, § 1152(5)(B), which directed the striking of “or may, under the direction and control of the Attorney General, bring such action”, was executed by striking “or may, under the direction and control of the Attorney General, bring such an action” after “such order” to reflect the probable intent of Congress

   Source evidence

   Code amendment note
   Subsec. (e). Pub. L. 110–289, § 1152(5)(B), which directed the striking of “or may, under the direction and control of the Attorney General, bring such action”, was executed by striking “or may, under the direction and control of the Attorney General, bring such an action” after “such order” to reflect the probable intent of Congress.

   Enacted provision · exact public law section
   (B) by striking “or may, under the direction and control of the Attorney General, bring such action”.

7. 2008

   Federal Housing Finance Regulatory Reform Act of 2008

   Pub. L. 110–289 § 1152(5)(A) · 122 Stat. 2654

   Struck · 12 U.S.C. § 4632(e)

   Pub. L. 110–289, § 1152(5)(A), struck out “request the Attorney General of the United States to” after “Director may”

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 110–289, § 1152(5)(A), struck out “request the Attorney General of the United States to” after “Director may”.

   Enacted provision · exact public law section
   (A) by striking “request the Attorney General of the United States to”; and

10 of 10 references resolved to an enrolled provision