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12 U.S.C. § 4634 — Cease-and-desist proceedings
Federal law — U.S. Code and appendices · legal_authorities
**(a) Issuance for unsafe or unsound practices and violations**
(1) **Authority of Director** — If, in the opinion of the Director, a regulated entity or any entity-affiliated party is engaging or has engaged, or the Director has reasonable cause to believe that the regulated entity or any entity-affiliated party is about to engage, in an unsafe or unsound practice in conducting the business of the regulated entity or the Office of Finance, or is violating or has violated, or the Director has reasonable cause to believe is about to violate, a law, rule, regulation, or order, or any condition imposed in writing by the Director in connection with the granting of any application or other request by the regulated entity or the Office of Finance or any written agreement entered into with the Director, the Director may issue and serve upon the regulated entity or entity-affiliated party a notice of charges in respect thereof.
(2) **Limitation** — The Director may not, pursuant to this section, enforce compliance with any housing goal established under subpart 2 of part B of subchapter I of this chapter, with section 4566 or 4567 of this title, with subsection (m) or (n) of [section 1723a of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1723a&num=0&edition=prelim), with subsection (e) or (f) of [section 1456 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1456&num=0&edition=prelim), or with paragraph (5) of [section 1430(j) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1430/j&num=0&edition=prelim).
**(b) Issuance for unsatisfactory rating** If a regulated entity receives, in its most recent report of examination, a less-than-satisfactory rating f
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Stable record: federal_law:legal_authorities:record_usc_03f130a644f100365632f434
Source file: Laws/federal/codes/united-states-code/title-12/section-4634-cease-and-desist-proceedings--3ac3e99363.md
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Source location: Title 12, Chapter 46, § 4634; chapter-046-government-sponsored-enterprises.md
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**(a) Issuance for unsafe or unsound practices and violations**
(1) **Authority of Director** — If, in the opinion of the Director, a regulated entity or any entity-affiliated party is engaging or has engaged, or the Director has reasonable cause to believe that the regulated entity or any entity-affiliated party is about to engage, in an unsafe or unsound practice in conducting the business of the regulated entity or the Office of Finance, or is violating or has violated, or the Director has reasonable cause to believe is about to violate, a law, rule, regulation, or order, or any condition imposed in writing by the Director in connection with the granting of any application or other request by the regulated entity or the Office of Finance or any written agreement entered into with the Director, the Director may issue and serve upon the regulated entity or entity-affiliated party a notice of charges in respect thereof.
(2) **Limitation** — The Director may not, pursuant to this section, enforce compliance with any housing goal established under subpart 2 of part B of subchapter I of this chapter, with section 4566 or 4567 of this title, with subsection (m) or (n) of [section 1723a of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1723a&num=0&edition=prelim), with subsection (e) or (f) of [section 1456 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1456&num=0&edition=prelim), or with paragraph (5) of [section 1430(j) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1430/j&num=0&edition=prelim).
**(b) Issuance for unsatisfactory rating** If a regulated entity receives, in its most recent report of examination, a less-than-satisfactory rating for asset quality, management, earnings, or liquidity, the Director may (if the deficiency is not corrected) deem the regulated entity to be engaging in an unsafe or unsound practice for purposes of subsection (a).
**(c) Procedure**
(1) **Notice of charges** — Each notice of charges under this section shall contain a statement of the facts constituting the alleged practice or violation and shall fix a time and place at which a hearing will be held to determine on the record whether an order to cease and desist from such practice or violation should issue, unless the party served with a notice of charges shall appear at the hearing personally or by a duly authorized representative, the party shall be deemed to have consented to the issuance of the cease and desist order.
(2) **Issuance of order** — If the Director finds on the record made at such hearing that any practice or violation specified in the notice of charges has been established (or the regulated entity or entity-affiliated party consents pursuant to [section 4633(a)(4) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4633/a/4&num=0&edition=prelim)), the Director may issue and serve upon the regulated entity, executive officer, director, or entity-affiliated party an order requiring such party to cease and desist from any such practice or violation and to take affirmative action to correct or remedy the conditions resulting from any such practice or violation.
**(d) Affirmative action to correct conditions resulting from violations or activities** The authority under this section and [section 4632 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4632&num=0&edition=prelim) to issue any order requiring a regulated entity, executive officer, director, or entity-affiliated party to take affirmative action to correct or remedy any condition resulting from any practice or violation with respect to which such order is issued includes the authority to require a regulated entity or entity-affiliated party—
(1) make 11 So in original. Probably should be “to make”. restitution to, or provide reimbursement, indemnification, or guarantee against loss, if—
(A) such entity or party or finance facility was unjustly enriched in connection with such practice or violation; or
(B) the violation or practice involved a reckless disregard for the law or any applicable regulations or prior order of the Director;
(2) to require a regulated entity to seek restitution, or to obtain reimbursement, indemnification, or guarantee against loss;
(3) to restrict the growth of the regulated entity;
(4) to require the regulated entity to dispose of any loan or asset involved;
(5) to require the regulated entity to rescind agreements or contracts;
(6) to require the regulated entity to employ qualified officers or employees (who may be subject to approval by the Director at the direction of the Director); and
(7) to require the regulated entity to take such other action as the Director determines appropriate.
**(e) Authority to limit activities** The authority to issue an order under this section or [section 4632 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4632&num=0&edition=prelim) includes the authority to place limitations on the activities or functions of the regulated entity or entity-affiliated party or any executive officer or director of the regulated entity or entity-affiliated party.
**(f) Effective date** An order under this section shall become effective upon the expiration of the 30-day period beginning on the service of the order upon the regulated entity, finance facility,,22 So in original. executive officer, director, or entity-affiliated party concerned (except in the case of an order issued upon consent, which shall become effective at the time specified therein), and shall remain effective and enforceable as provided in the order, except to the extent that the order is stayed, modified, terminated, or set aside by action of the Director or otherwise, as provided in this subchapter.
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Federal law — U.S. Code and appendices · legal_authorities
Any service required or authorized to be made by the Director under this subchapter may be made by registered mail, or in such other manner reasonably calculated to give actual notice as the Director may by regulation or otherwise provide.
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 4501
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Federal law — U.S. Code and appendices · legal_authorities
**(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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4614&num=0&edition=prelim) 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 11 See References in Text note below. 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
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 4632
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Federal law — U.S. Code and appendices · legal_authorities
If the Secretary of Housing and Urban Development finds that, because of higher costs prevailing in Alaska, Guam, Hawaii, or the Virgin Islands, it is not feasible to construct dwellings or manufactured home courts or parks on property located in Alaska, Guam, Hawaii, or the Virgin Islands without sacrifice of sound standards of construction, design, or livability, within the limitations as to maximum or maxima mortgage amounts provided in this chapter, the Secretary may, by regulations or otherwise, prescribe, with respect to dollar amount, a higher maximum or maxima for the principal obligation of mortgages insured under this chapter covering property located in Alaska, Guam, Hawaii, or the Virgin Islands in such amounts as he shall find necessary to compensate for such higher costs but not to exceed, in any event, the maximum or maxima otherwise applicable (including increased mortgage amounts in geographical areas where cost levels so require) by more than one-half thereof. No mortgage with respect to a project or property in Alaska, Guam, Hawaii, or the Virgin Islands shall be accepted for insurance under this chapter unless the Secretary finds that the project or property is an acceptable risk giving consideration to the acute housing shortage in Alaska, Guam, Hawaii, or the Virgin Islands: Provided, That any such mortgage may be insured or accepted for insurance without regard to any requirement in any other section of this chapter that the Secretary find the project or property to be economically sound or an acceptable risk. Notwithstanding any of the provisions of this chapter or any other law, the Alaska Housing Authority or the Government of Guam, the Virgin Islands, or Hawaii or any agency or instrumentality thereof shall be eligible as mortgagor or mortgage
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 1723a
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Rights and remedies of Corporation; State qualifications or similar statutes** All rights and remedies of the Corporation, including without limitation on the generality of the foregoing any rights and remedies of the Corporation on, under, or with respect to any mortgage or any obligation secured thereby, shall be immune from impairment, limitation, or restriction by or under (1) any law (except laws enacted by the Congress expressly in limitation of this sentence) which becomes effective after the acquisition by the Corporation of the subject or property on, under, or with respect to which such right or remedy arises or exists or would so arise or exist in the absence of such law, or (2) any administrative or other action which becomes effective after such acquisition. The Corporation is authorized to conduct its business without regard to any qualification or similar statute in any State.
**(b) Government audits; procedure; access to records, etc.; reimbursement of costs**
(1) The programs, activities, receipts, expenditures, and financial transactions of the Corporation shall be subject to audit by the Comptroller General of the United States under such rules and regulations as may be prescribed by the Comptroller General. The representatives of the Government Accountability Office shall have access to all books, accounts, financial records, reports, files and all other papers, things, or property belonging to or in use by the Corporation and necessary to facilitate the audit, and they shall be afforded full facilities for verifying transactions with the balances or securities held by depositaries, fiscal agents, and custodians. A report on each such audit shall be made by the Comptroller General to the Congress. The Corporation shall reimburse the Governmen
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 1456
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Regular and special reports**
(1) **Regular reports** — The Director may require, by general or specific orders, a regulated entity to submit regular reports, including financial statements determined on a fair value basis, on the condition (including financial condition), management, activities, or operations of the regulated entity, as the Director considers appropriate (in addition to the annual and quarterly reports required under [section 1723a(k) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1723a/k&num=0&edition=prelim) and [section 1456(c) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1456/c&num=0&edition=prelim)).
(2) **Special reports** — The Director may also require, by general or specific orders, a regulated entity to submit special reports on any of the topics specified in paragraph (1) or any other relevant topics, if, in the judgment of the Director, such reports are necessary to carry out the purposes of this chapter.
(3) **Limitation** — The Director may not require the inclusion, in any report pursuant to paragraph (1) or (2), of any information that is not reasonably obtainable by the regulated entity.
(4) **Notice and declaration** — The Director shall notify the regulated entity, a reasonable period in advance of the date for submission of any report under this subsection, of any specific information to be contained in the report and the date for the submission of the report. Each report under this subsection shall contain a declaration by the president, vice president, treasurer, or any other officer designated by the board of directors of the regulated entity to make such declaration, that the report is true and correct to the best of such officer’
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 4516
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Requirements**
(1) **Venue and record** — Any hearing under section 4631, 4636(c), or 4636a of this title shall be held on the record and in the District of Columbia.
(2) **Timing** — Any such hearing shall be fixed for a date not earlier than 30 days nor later than 60 days after service of the notice of charges under section 4631 or 4636a of this title or determination to impose a penalty under [section 4636 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4636&num=0&edition=prelim), unless an earlier or a later date is set by the hearing officer at the request of the party served.
(3) **Procedure** — Any such hearing shall be conducted in accordance with chapter 5 of title 5.
(4) **Failure to appear** — If the party served fails to appear at the hearing through a duly authorized representative, such party shall be deemed to have consented to the issuance of the cease-and-desist or removal or prohibition order or the imposition of the penalty for which the hearing is held.
**(b) Issuance of order**
(1) **In general** — After any such hearing, and within 90 days after the parties have been notified that the case has been submitted to the Director for final decision, the Director shall render the decision (which shall include findings of fact upon which the decision is predicated) and shall issue and serve upon each party to the proceeding an order or orders consistent with the provisions of this subchapter.
(2) **Modification** — Judicial review of any such order shall be exclusively as provided in [section 4634 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4634&num=0&edition=prelim). Unless such a petition for review is timely filed as provided in [section 4634 of this t
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 4636
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** The Director may impose a civil money penalty in accordance with this section on any regulated entity or any entity-affiliated party. The Director shall not impose a civil penalty in accordance with this section on any regulated entity or any entity-affiliated party for any violation that is addressed under [section 4585(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4585/a&num=0&edition=prelim).
**(b) Amount of penalty**
(1) **First tier** — A regulated entity or entity-affiliated party shall forfeit and pay a civil penalty of not more than $10,000 for each day during which a violation continues, if such regulated entity or party—
(A) violates any provision of this chapter, the authorizing statutes, or any order, condition, rule, or regulation under this chapter or any authorizing statute;
(B) violates any final or temporary order or notice issued pursuant to this chapter;
(C) violates any condition imposed in writing by the Director in connection with the grant of any application or other request by such regulated entity; or
(D) violates any written agreement between the regulated entity and the Director.
(2) **Second tier** — Notwithstanding paragraph (1), a regulated entity or entity-affiliated party shall forfeit and pay a civil penalty of not more than $50,000 for each day during which a violation, practice, or breach continues, if—
(A) the regulated entity or entity-affiliated party, respectively—
(i) commits any violation described in any subparagraph of paragraph (1);
(ii) recklessly engages in an unsafe or unsound practice in conducting the affairs of the regulated entity; or
(iii) breaches any fiduciary duty; and
(B) the violation, practice, or breach—
(
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 4637
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Federal law — U.S. Code and appendices · legal_authorities
Page 1717
TITLE 12—BANKS AND BANKING
§ 4634
1 So in original. Probably should be followed by a comma.
title. Such court shall have jurisdiction to issue
such injunction.
(e) Enforcement by Attorney General
In the case of violation or threatened viola-
tion of, or failure to obey, a temporary order
issued pursuant to this section, the Director
may bring an action in the United States Dis-
trict Court for the District of Columbia for an
injunction to enforce such order. If the court
finds any such violation, threatened violation,
or failure to obey, the court shall issue such in-
junction.
(Pub. L. 102–550, title XIII, § 1372, Oct. 28, 1992, 106
Stat. 3988; Pub. L. 110–289, div. A, title I, § 1152,
July 30, 2008, 122 Stat. 2769.)
Editorial Notes
AMENDMENTS
2008—Subsec. (a). Pub. L. 110–289, § 1152(1), added sub-
sec. (a) and struck out former subsec. (a) which related
to grounds for issuance and scope of temporary cease-
and-desist orders.
Subsec. (b). Pub. L. 110–289, § 1152(2), substituted ‘‘di-
rector, or entity-affiliated party’’ for ‘‘or director’’ and
‘‘regulated entity’’ for ‘‘enterprise’’.
Subsec. (c). Pub. L. 110–289, § 1152(3), substituted ‘‘reg-
ulated entity’’ for ‘‘enterprise’’ wherever appearing.
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.
Subsec. (e). Pub. L. 110–289, § 1152(5)(B), which directed
the striking of ‘‘or may, under the direction and con-
trol 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.
Pub. L. 110–289, § 11
Source: Supplied 2024 U.S. Code historical extraction · 12 U.S.C. § 4634
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