§ 504. Civil money penalty

Footnotes

1. 1 So in original. Probably should be followed by a dash.
2. 2 So in original. Probably should be “such member bank”.
3. 3 So in original. Probably should be followed by a dash rather than “by”.
4. 4 So in original. No subsecs. (j) to (l) have been enacted.

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. 1913

   Financial Institutions Regulatory and Interest Rate Control Act of 1978

   Pub. L. 95–630 title I § 101 · 92 Stat. 3641

   Enacted · 12 U.S.C. § 504

   Dec. 23, 1913, ch. 6, § 29, as added Pub. L. 95–630, title I, § 101, Nov. 10, 1978, 92 Stat. 3641

   Source evidence

   Code source credit
   Dec. 23, 1913, ch. 6, § 29, as added Pub. L. 95–630, title I, § 101, Nov. 10, 1978, 92 Stat. 3641

   Enacted provision · exact public law section
   Sec. 101. The Federal Reserve Act is amended by redesignating 12 USC 226 note. sections 29 and 30 as sections 30 and 31, respectively, and by inserting after section 28 a new section as follows: “Sec. 29. (a) Any member bank which violates or any officer, Civil penalty. 12 USC 504. director, employee, agent, or other person participating in the conduct of the affairs of such member bank who violates any provision of section 22 or 23A of this Act, or any regulation issued pursuant thereto, 12 USC 375, 375a, 375b, 376, 503. 12 USC 371c. Notice. “Violates.” shall forfeit and pay a civil penalty of not more than $1,000 per day for each day during which such violation continues. The penalty shall be assessed and collected by the Comptroller of the Currency in the case of a national bank, or the Board in the case of a State member bank, by written notice. As used in this section, the term ‘violates’ includes without any limitation any action (alone or with another or others) for or toward causing, bringing about, participating in, counseling, or aiding or abetting a violation. “(b) In determining the amount of the penalty the Comptroller of Hearing opportunity. the Currency or the Board, as the case may be, shall take into account the appropriateness of the penalty with respect to the size of the financial resources and good faith of the member bank or person charged, the gravity of the violation, the history of previous violations, and such other matters as justice may require. “(c) The member bank or person assessed shall be afforded an opportunity for agency hearing, upon request made within ten days after issuance of the notice of assessment. In such hearing, all issues shall be determined on the record pursuant to section 554 of title 5, United States Code. The agency determination shall be made by final order which may be reviewed only as provided in subsection (d). If no hearing is requested as herein provided, the assessment shall constitute a final and unappealable order. “(d) Any member bank or person against whom an order imposing Review. a civil money penalty has been entered after agency hearing under this section may obtain review by the United States court of appeals for the circuit in which the home office of the member bank is located, or the United States Court of Appeals for the District of Columbia Circuit, by filing a notice of appeal in such court within ten days from the date of such order, and simultaneously sending a copy of such notice by registered or certified mail to the Comptroller of the Currency or the Board, as the case may be. The Comptroller of the Currency Certification. or the Board, as the case may be, shall promptly certify and file in such court the record upon which the penalty was imposed, as provided in section 2112 of title 28, United States Code. The findings of the Comptroller of the Currency or the Board, as the ease may be, shall be set aside if found to be unsupported by substantial evidence as provided by section 706(2)(E) of title 5, United States Code. “(e) If any member bank or person fails to pay an assessment after it has become a final and unappealable order, or after the court of appeals has entered final judgment in favor of the agency, the Comptroller of the Currency or the Board, as the case maybe, shall refer the matter to the Attorney General, who shall recover the amount assessed by action in the appropriate United States district court. In such action the validity and appropriateness of the final order imposing the penalty shall not be subject to review. “(f) The Comptroller of the Currency and the Board shall promulgate regulations establishing procedures necessary to implement this section. “(g) All penalties collected under authority of this section shall be covered into the Treasury of the United States.”.

2. 1982

   Garn-St Germain Depository Institutions Act of 1982

   Pub. L. 97–320 § 424(c) · 96 Stat. 1469

   1. Inserted · 12 U.S.C. § 504(a)

      Pub. L. 97–320, § 424(c), (d)(1), inserted proviso giving agency discretionary authority to compromise, etc., any civil money penalty imposed under its authority

   2. Substituted · 12 U.S.C. § 504(a)

      Pub. L. 97–320, § 424(c), (d)(1), substituted “may be assessed” for “shall be assessed”, respectively

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 97–320, § 424(c), (d)(1), inserted proviso giving agency discretionary authority to compromise, etc., any civil money penalty imposed under its authority, and substituted “may be assessed” for “shall be assessed”, respectively.

   Enacted provision · exact public law section
   (c) Section 29(a) of the Federal Reserve Act (12 U.S.C. 504(a)); section 8(i)(2)(i) of the Federal Deposit Insurance Act (12 U.S.C. 1818(i)(2)(i)); and section 106(b)(2)(F)(i) of the Bank Holding Company Act Amendments of 1970 (12 U.S.C. 1972(2)(F)(i)) are amended by inserting before the period at the end of the first sentence thereof the following: “: Provided, That the agency having authority to impose a civil money penalty may, in its discretion, compromise, modify, or remit any civil money penalty which is subject to imposition or has been imposed under such authority”.

3. 1982

   Garn-St Germain Depository Institutions Act of 1982

   Pub. L. 97–320 § 424(e) · 96 Stat. 1469

   Substituted · 12 U.S.C. § 504(d)

   Pub. L. 97–320, § 424(e), substituted “twenty days from the service” for “ten days from the date”

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 97–320, § 424(e), substituted “twenty days from the service” for “ten days from the date”.

   Enacted provision · exact public law section
   (e) Sections 29(d) and 19(l)(4) of the Federal Reserve Act (12 U.S.C. 504(d) and 505(4)), 18(j)(3)(D) and 8(i)(2)(iv) of the Federal Deposit Insurance Act (12 U.S.C. 1828(j)(3)(D) and 1818(i)(2)(iv)), 407(k)(3)(D) of the National Housing Act (12 U.S.C. 1730(k)(3)(D)), 5(d)(8)(B)(iv) of the Home Owners’ Loan Act of 1933 (12 U.S.C. 1464(d)(8)(B)(iv)), 206(j)(2)(D) of the Federal Credit Union Act (12 U.S.C. 1786(j)(2)(D)), and 106(b)(2)(F)(iv) of the Bank Holding Company Act Amendments of 1970 (12 U.S.C. 1972(2)(F)(iv)) are amended by striking out “ten days from the date” in each section and inserting in lieu thereof “twenty days from the service”.

4. 1989

   Financial Institutions Reform, Recovery, and Enforcement Act of 1989

   Pub. L. 101–73 § 907(g) · 103 Stat. 183

   1. Amended · 12 U.S.C. § 504

      Pub. L. 101–73, § 907(g), amended section generally

   2. Substituted · 12 U.S.C. § 504

      Pub. L. 101–73, § 907(g), substituting provisions of subsecs. (a) to (i) for former provisions which related to the following: subsec. (a), making loans, extensions of credit, purchases of securities, etc., respecting affiliates, executive officers, etc.; subsec. (b), amount of penalty; subsec. (c), opportunity for hearing; subsec. (d), review by United States court of appeals; subsec. (e), action by Attorney General for failure to pay assessment; subsec. (f), promulgation of regulations; and subsec. (g), penalties covered into Treasury of United States

   Source evidence

   Code amendment note
   Pub. L. 101–73, § 907(g), amended section generally, substituting provisions of subsecs. (a) to (i) for former provisions which related to the following: subsec. (a), making loans, extensions of credit, purchases of securities, etc., respecting affiliates, executive officers, etc.; subsec. (b), amount of penalty; subsec. (c), opportunity for hearing; subsec. (d), review by United States court of appeals; subsec. (e), action by Attorney General for failure to pay assessment; subsec. (f), promulgation of regulations; and subsec. (g), penalties covered into Treasury of United States.

   Enacted provision · exact public law section
   (g) Member Banks.— Section 29 of the Federal Reserve Act (12 U.S.C. 504) is amended to read as follows: “SEC. 29. CIVIL MONEY PENALTY. (a) First Tier.— Any member bank which, and any institution-affiliated party (within the meaning of section 3(u) of the Federal Deposit Insurance Act) with respect to such member bank who, violates any provision of section 22, 23A, or 23B, or any regulation issued pursuant thereto, shall forfeit and pay a civil penalty of not more than $5,000 for each day during which such violation continues. “(b) Second tier.— Notwithstanding subsection (a), any member bank which, and any institution-affiliated party (within the meaning of section 3(u) of the Federal Deposit Insurance Act) with respect to such member bank who “(1) (A) commits any violation described in subsection (a); “(B) recklessly engages in an unsafe or unsound practice in conducting the affairs of such member bank; or “(C) breaches any fiduciary duty; “(2) which violation, practice, or breach— “(A) is part of a pattern of misconduct; “(B) causes or is likely to cause more than a minimal loss to such member bank; or “(C) results in pecuniary gain or other benefit to such party, shall forfeit and pay a civil penalty of not more than $25,000 for each day during which such violation, practice, or breach continues. “(c) Third tier.— Notwithstanding subsections (a) and (b), any member bank which, and any institution-affiliated party (within the meaning of section 3(u) of the Federal Deposit Insurance Act) with respect to such member bank who— “(1) knowingly— “(A) commits any violation described in subsection (a); “(B) engages in any unsafe or unsound practice in conducting the affairs of such credit union; or “(C) breaches any fiduciary duty; and “(2) knowingly or recklessly causes a substantial loss to such credit union or a substantial pecuniary gain or other benefit to such party by reason of such violation, practice, or breach, shall forfeit and pay a civil penalty in an amount not to exceed the applicable maximum amount determined under subsection (d) for each day during which such violation, practice, or breach continues. “(d) Maximum Amounts of Penalties for any Violation Described in Subsection (c).— The maximum daily amount of any civil penalty which may be assessed pursuant to subsection (c) for any violation, practice, or breach described in such subsection is— “(1) in the case of any person other than a member bank, an amount to not exceed $1,000,000; and “(2) in the case of a member bank, an amount not to exceed the lesser of— “(A) $1,000,000; or “(B) 1 percent of the total assets of such member bank. “(e) Assessment; etc.— Any penalty imposed under subsection (a), (b), or (c) shall be assessed and collected by “(1) in the case of a national bank, by the Comptroller of the Currency; and “(2) in the case of a State member bank, by the Board, in the manner provided in subparagraphs (E), (F), (G), and (I) of section 8(i)(2) of the Federal Deposit Insurance Act for penalties imposed (under such section) and any such assessment shall be subject to the provisions of such section. “(f) Hearing.— The member bank or other person against whom any penalty is assessed under this section shall be afforded an agency hearing if such member bank or person submits a request for such hearing within 20 days after the issuance of the notice of assessment. Section 8(h) of the Federal Deposit Insurance Act shall apply to any proceeding under this section. “(g) Disbursement.— All penalties collected under authority of this paragraph shall be deposited into the Treasury. “(h) Violate Defined.— For purposes of this section, the term ‘violate’ includes any action (alone or with another or others) for or toward causing, bringing about, participating in, counseling, or aiding or abetting a violation. “(i) Regulations.— The Comptroller of the Currency and the Board shall prescribe regulations establishing such procedures as may be necessary to carry out this section.”.

   Effective date note
   Amendment by section 907(g) of Pub. L. 101–73 applicable to conduct engaged in after Aug. 9, 1989, except that increased maximum penalties of $5,000 and $25,000 may apply to conduct engaged in before such date if such conduct is not already subject to a notice issued by the appropriate agency and occurred after completion of the last report of the examination of the institution by the appropriate agency occurring before Aug. 9, 1989, see section 907(l) of Pub. L. 101–73, set out as a note under section 93 of this title.

5. 1989

   Financial Institutions Reform, Recovery, and Enforcement Act of 1989

   Pub. L. 101–73 § 905(f) · 103 Stat. 183

   Added · 12 U.S.C. § 504(m)

   Pub. L. 101–73, § 905(f), added subsec. (m)

   Source evidence

   Code amendment note
   Subsec. (m). Pub. L. 101–73, § 905(f), added subsec. (m).

   Enacted provision · exact public law section
   (f) Member Banks.— Section 29 of the Federal Reserve Act (12 U.S.C. 504(a)), as added by section 907(g) of this Act, is amended by adding at the end the following new subsection: “(m) Notice Under This Section After Separation From Service.— The resignation, termination of employment or participation, or separation of an institution-affiliated party (within the meaning of section 3(u) of the Federal Deposit Insurance Act) with respect to a member bank (including a separation caused by the closing of such a bank) shall not affect the jurisdiction and authority of the appropriate Federal banking agency to issue any notice and proceed under this section against any such party, if such notice is served before the end of the 6-year period beginning on the date such party ceased to be such a party with respect to such bank (whether such date occurs before, on, or after the date of the enactment of this subsection).“.

   Effective date note
   Amendment by section 907(g) of Pub. L. 101–73 applicable to conduct engaged in after Aug. 9, 1989, except that increased maximum penalties of $5,000 and $25,000 may apply to conduct engaged in before such date if such conduct is not already subject to a notice issued by the appropriate agency and occurred after completion of the last report of the examination of the institution by the appropriate agency occurring before Aug. 9, 1989, see section 907(l) of Pub. L. 101–73, set out as a note under section 93 of this title.

7 of 7 references resolved to an enrolled provision