12 U.S.C. § 164 — Penalty for failure to make reports

Page 60 TITLE 12—BANKS AND BANKING § 162 § 27, 48 Stat. 191; Pub. L. 86–230, §§ 11, 22(b), Sept. 8, 1959, 73 Stat. 458, 466; Pub. L. 86–671, § 5, July 14, 1960, 74 Stat. 551; Pub. L. 89–485, § 13(d), July 1, 1966, 80 Stat. 243; Pub. L. 101–73, title IX, § 911(b)(1), Aug. 9, 1989, 103 Stat. 478; Pub. L. 103–325, title III, § 308(a), Sept. 23, 1994, 108 Stat. 2218.) Editorial Notes REFERENCES IN TEXT The Federal Deposit Insurance Act, referred to in subsec. (a), is act Sept. 21, 1950, ch. 967, § 2, 64 Stat. 873, which is classified generally to chapter 16 (§ 1811 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1811 of this title and Tables. CODIFICATION R.S. § 5211 derived from act June 3, 1864, ch. 106, § 34, 13 Stat. 109, which was the National Bank Act, and act Mar. 3, 1869, ch. 130, § 1, 15 Stat. 326. See section 38 of this title. AMENDMENTS 1994—Subsec. (a). Pub. L. 103–325, § 308(a)(1), struck out before period at end of fifth sentence ‘‘; and the statement of resources and liabilities in the same form in which it is made to the Comptroller shall be pub- lished in a newspaper published in the place where such association is established, or if there is no newspaper in the place, then in the one published nearest thereto in the same county, at the expense of the association, and such proof of publication shall be furnished as may be required by the Comptroller’’. Subsec. (c). Pub. L. 103–325, § 308(a)(2), struck out after third sentence ‘‘The reports of such affiliates shall be published by the association under the same conditions as govern its own condition reports.’’ 1989—Subsec. (a). Pub. L. 101–73, § 911(b)(1)(A), in fifth sentence substituted ‘‘within the period of time speci- fied by the Comptroller’’ for ‘‘within ten days after the receipt of a request therefor from him’’. Subsec. (c). Pub. L. 101–73, § 911(b)(1)(B), struck out at end ‘‘Any such affiliated bank which fails to obtain and furnish any report required under this section shall be subject to a penalty of $100 for each day during which such failure continues.’’ 1966—Subsec. (c). Pub. L. 89–485 struck out second sentence stating that the term ‘‘affiliate’’ shall include holding company affiliates as well as other affiliates. 1960—Subsec. (a). Pub. L. 86–671, § 5(a), designated ex- isting provisions of former first par. as subsec. (a), sub- stituted provisions relating to the making of reports of condition in accordance with the Federal Deposit In- surance Act and additional reports of condition con- taining declaration of officer for former provisions re- quiring minimum of three reports annually verified by an officer, inserted provisions respecting contents and publication of special reports and deleted requirement for making reports of payment of dividends, which is incorporated in subsec. (b) of this section. Subsec. (b). Pub. L. 86–671, § 5(a), designated existing provisions of former first par. as subsec. (b). Subsec. (c). Pub. L. 86–671, § 5(b), designated existing provisions of former second par. as subsec. (c) and sub- stituted ‘‘four’’ for ‘‘three’’ in first sentence. 1959—Pub. L. 86–230 required transmission of reports to the Comptroller within ten instead of five days and the making of reports of the payment of dividends in- cluding advance reports of dividends proposed to be de- clared or paid, respectively. 1933—Act June 16, 1933, added second par. 1927—Act Feb. 25, 1927, inserted ‘‘or of a vice-presi- dent, or of an assistant cashier of the association des- ignated by its board of directors to verify such reports in the absence of the president and cashier, taken be- fore a notary public properly authorized and commis- sioned by the State in which such notary resides and the association is located, or any other officer having an official seal, authorized in such State to administer oaths’’ in first sentence, and ‘‘and the statement of re- sources and liabilities together with acknowledgment and attestation’’, in second sentence. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1989 AMENDMENT Pub. L. 101–73, title IX, § 911(i), Aug. 9, 1989, 103 Stat. 482, provided that: ‘‘The amendments made by this sec- tion [amending this section and sections 164, 324, 1782, 1817, 1847, and 1882 of this title] shall apply with respect to reports filed or required to be filed after the date of the enactment of this Act [Aug. 9, 1989].’’ EFFECTIVE DATE OF 1960 AMENDMENT Amendment by Pub. L. 86–671 effective Jan. 1, 1961, see section 7 of Pub. L. 86–671, set out as a note under section 1817 of this title. Executive Documents EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller of the Currency, referred to in this section, not included in transfer of functions to Secretary of the Treasury, see note set out under section 1 of this title. § 162. Repealed. Pub. L. 86–671, § 6, July 14, 1960, 74 Stat. 552. Section, act Feb. 26, 1881, ch. 82, 21 Stat. 352, pre- scribed the manner of verification of reports of condi- tion of national banks. See section 1817 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective Jan. 1, 1961, see section 7 of Pub. L. 86–671, set out as an Effective Date of 1960 Amendment note under section 1817 of this title. § 163. Repealed. Pub. L. 86–230, § 22(a), Sept. 8, 1959, 73 Stat. 466 Section, R.S. § 5212, related to report of dividends and net earnings. See section 161 of this title. § 164. Penalty for failure to make reports (a) First tier Any association which— (1) maintains procedures reasonably adapted to avoid any inadvertent error and, uninten- tionally and as a result of such an error— (A) fails to make, obtain, transmit, or pub- lish any report or information required by the Comptroller of the Currency under sec- tion 161 of this title, within the period of time specified by the Comptroller; or (B) submits or publishes any false or mis- leading report or information; or (2) inadvertently transmits or publishes any report which is minimally late, shall be subject to a penalty of not more than $2,000 for each day during which such failure continues or such false or misleading informa- tion is not corrected. The association shall have the burden of proving that an error was inad- vertent and that a report was inadvertently transmitted or published late. (b) Second tier Any association which— Page 61 TITLE 12—BANKS AND BANKING § 177a 1 So in original. Probably should be ‘‘section’’. (1) fails to make, obtain, transmit, or pub- lish any report or information required by the Comptroller of the Currency under section 161 of this title, within the period of time speci- fied by the Comptroller; or (2) submits or publishes any false or mis- leading report or information, in a manner not described in subsection (a) shall be subject to a penalty of not more than $20,000 for each day during which such failure continues or such false or misleading information is not corrected. (c) Third tier Notwithstanding subsections (a) and (b), if any association knowingly or with reckless dis- regard for the accuracy of any information or report described in subsection (b) submits or publishes any false or misleading report or in- formation, the Comptroller may assess a pen- alty of not more than $1,000,000 or 1 percent of total assets of the association, whichever is less, per day for each day during which such failure continues or such false or misleading informa- tion is not corrected. (d) Assessment; etc. Any penalty imposed under subsection (a), (b), or (c) shall be assessed and collected by the Comptroller of the Currency in the manner pro- vided in subparagraphs (E), (F), (G), and (I) of section 1818(i)(2) of this title (for penalties im- posed under such section) and any such assess- ment (including the determination of the amount of the penalty) shall be subject to the provisions of such section. (e) Hearing Any association against which any penalty is assessed under this subsection 1 shall be afforded an agency hearing if such association submits a request for such hearing within 20 days after the issuance of the notice of assessment. Section 1818(h) of this title shall apply to any proceeding under this section. (R.S. § 5213; Pub. L. 86–230, § 12, Sept. 8, 1959, 73 Stat. 458; Pub. L. 101–73, title IX, § 911(b)(2), Aug. 9, 1989, 103 Stat. 478.) Editorial Notes CODIFICATION R.S. § 5213 derived from act Mar. 3, 1869, ch. 130, §§ 1, 2, 15 Stat. 326, 327. AMENDMENTS 1989—Pub. L. 101–73 amended section generally. Prior to amendment, section read as follows: ‘‘Every associa- tion which fails to make and transmit any report re- quired under section 161 of this title shall be subject to a penalty of $100 for each day after the periods, respec- tively, therein mentioned, that it delays to make and transmit its report. Whenever any association delays or refuses to pay the penalty herein imposed, after it has been assessed by the Comptroller of the Currency, the amount thereof may be retained by the Treasurer of the United States, upon the order of the Comptroller of the Currency, out of the interest, as it may become due to the association, on the bonds deposited with him to secure circulation. All sums of money collected for pen- alties under this section shall be paid into the Treasury of the United States.’’ 1959—Pub. L. 86–230 substituted ‘‘section 161 of this title’’ for ‘‘either section 161 or 163 of this title’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1989 AMENDMENT Amendment by Pub. L. 101–73 applicable with respect to reports filed or required to be filed after Aug. 9, 1989, see section 911(i) of Pub. L. 101–73, set out as a note under section 161 of this title. Executive Documents EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller of the Currency, referred to in this section, not included in transfer of functions to Secretary of the Treasury, see note set out under section 1 of this title. § 165. Omitted Editorial Notes CODIFICATION Section, R.S. § 5241, related to limitation of visitorial powers. See section 484 of this title. SUBCHAPTER XI—MISCELLANEOUS PROVI- SIONS REGARDING UNITED STATES BONDS IN RELATION TO NATIONAL BANKS §§ 168 to 177. Repealed. Pub. L. 103–325, title VI, § 602(e)(24)–(31), (f)(4)(D), (5)(A), Sept. 23, 1994, 108 Stat. 2292, 2293 Section 168, R.S. § 5160, authorized associations to take up bonds upon returning circulating notes to Comptroller of the Currency. Section 169, R.S. § 5161, related to exchange of United States coupon bonds for registered bonds. Section 170, R.S. § 5162; Aug. 23, 1935, ch. 614, § 313, 49 Stat. 711, related to manner of making transfers of bonds. Section 171, R.S. § 5163, related to establishment of registry of transferred bonds by Comptroller of the Cur- rency. Section 172, R.S. § 5164, required Comptroller of the Currency to notify national banking associations of transfers from its accounts. Section 173, R.S. § 5165, related to examination of reg- istry and bonds by Comptroller of the Currency and Treasurer of United States. Section 174, R.S. § 5166, related to annual examination of bonds by national banking associations. Section 175, R.S. § 5167, related to custody of bonds and collection of interest. Section 176, acts June 20, 1874, ch. 343, § 4, 18 Stat. 124; June 21, 1917, ch. 32, § 9, 40 Stat. 239, provided that asso- ciations desiring to withdraw circulating notes could, upon deposit of money with Treasurer of United States, withdraw bonds on deposit with Treasurer for security of such notes. Section 177, acts July 12, 1882, ch. 290, § 8, 22 Stat. 164; Mar. 14, 1900, ch. 41, § 12, 31 Stat. 49; June 21, 1917, ch. 32, § 9, 40 Stat. 239, related to amount of bonds banks were required to keep on deposit with Treasurer of United States, as security for circulating notes, and au- thorized banks having deposits in excess of such amount to reduce, or retire in full, their circulation by depositing lawful money. § 177a. Funds available for cost of transporting and redeeming national and Federal Reserve bank notes The cost of transporting and redeeming out- standing national bank notes and Federal Re-