12 U.S.C. § 4516 — Funding

Page 1653 TITLE 12—BANKS AND BANKING § 4516 1 So in original. Probably should be ‘‘bear’’. ‘‘(2) such recommendations for administrative and legislative action as the Director determines appro- priate to carry out such programs.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the trans- fer date, see section 351 of Pub. L. 111–203, set out as a note under section 906 of Title 2, The Congress. § 4516. Funding (a) Annual assessments The Director shall establish and collect from the regulated entities annual assessments in an amount not exceeding the amount sufficient to provide for reasonable costs (including adminis- trative costs) and expenses of the Agency, in- cluding— (1) the expenses of any examinations under section 4517 of this title and under section 1440 of this title; (2) the expenses of obtaining any reviews and credit assessments under section 4519 of this title; (3) such amounts in excess of actual ex- penses for any given year as deemed necessary by the Director to maintain a working capital fund in accordance with subsection (e); and (4) the windup of the affairs of the Office of Federal Housing Enterprise Oversight and the Federal Housing Finance Board under title III of the Federal Housing Finance Regulatory Reform Act of 2008. (b) Allocation of annual assessment to enter- prises (1) Amount of payment Each enterprise shall pay to the Director a proportion of the annual assessment made pursuant to subsection (a) that bears the same ratio to the total annual assessment that the total assets of each enterprise bears 1 to the total assets of both enterprises. (2) Separate treatment of Federal home loan bank and enterprise assessments Assessments collected from the enterprises shall not exceed the amounts sufficient to pro- vide for the costs and expenses described in subsection (a) relating to the enterprises. As- sessments collected from the Federal Home Loan Banks shall not exceed the amounts suf- ficient to provide for the costs and expenses described in subsection (a) relating to the Fed- eral Home Loan Banks. (3) Timing of payment The annual assessment shall be payable semiannually for each fiscal year, on October 1 and April 1. (4) ‘‘Total assets’’ defined For the purpose of this section, the term ‘‘total assets’’ means, with respect to an en- terprise, the sum of— (A) on-balance-sheet assets of the enter- prise, as determined in accordance with gen- erally accepted accounting principles; (B) the unpaid principal balance of out- standing mortgage-backed securities issued or guaranteed by the enterprise that are not included in subparagraph (A); and (C) other off-balance-sheet obligations as determined by the Director. (c) Increased costs of regulation (1) Increase for inadequate capitalization The semiannual payments made pursuant to subsection (b) by any regulated entity that is not classified (for purposes of subchapter II) as adequately capitalized may be increased, as necessary, in the discretion of the Director to pay additional estimated costs of regulation of the regulated entity. (2) Adjustment for enforcement activities The Director may adjust the amounts of any semiannual payments for an assessment under subsection (a) that are to be paid pursuant to subsection (b) by a regulated entity, as nec- essary in the discretion of the Director, to en- sure that the costs of enforcement activities under this Act for a regulated entity are borne only by such regulated entity. (3) Additional assessment for deficiencies If at any time, as a result of increased costs of regulation of a regulated entity that is not classified (for purposes of subchapter II) as adequately capitalized or as the result of su- pervisory or enforcement activities under this Act for a regulated entity, the amount avail- able from any semiannual payment made by such regulated entity pursuant to subsection (b) is insufficient to cover the costs of the Agency with respect to such entity, the Direc- tor may make and collect from such regulated entity an immediate assessment to cover the amount of such deficiency for the semiannual period. If, at the end of any semiannual period during which such an assessment is made, any amount remains from such assessment, such remaining amount shall be deducted from the assessment for such regulated entity for the following semiannual period. (d) Surplus Except with respect to amounts collected pur- suant to subsection (a)(3), if any amount from any annual assessment collected from an enter- prise remains unobligated at the end of the year for which the assessment was collected, such amount shall be credited to the assessment to be collected from the enterprise for the following year. (e) Working capital fund At the end of each year for which an assess- ment under this section is made, the Director shall remit to each regulated entity any amount of assessment collected from such regulated en- tity that is attributable to subsection (a)(3) and is in excess of the amount the Director deems necessary to maintain a working capital fund. (f) Treatment of assessments (1) Deposit Amounts received by the Director from as- sessments under this section may be deposited by the Director in the manner provided in sec- tion 192 of this title for monies deposited by the Comptroller of the Currency. Page 1654 TITLE 12—BANKS AND BANKING § 4516 2 See References in Text note below. (2) Not Government funds The amounts received by the Director from any assessment under this section shall not be construed to be Government or public funds or appropriated money. (3) No apportionment of funds Notwithstanding any other provision of law, the amounts received by the Director from any assessment under this section shall not be subject to apportionment for the purpose of chapter 15 of title 31 or under any other au- thority. (4) Use of funds The Director may use any amounts received by the Director from assessments under this section for compensation of the Director and other employees of the Agency and for all other expenses of the Director and the Agency. (5) Availability of oversight fund amounts Notwithstanding any other provision of law, any amounts remaining in the Federal Hous- ing Enterprises Oversight Fund established under this section (as in effect before the ef- fective date of the Federal Housing Finance Regulatory Reform Act of 2008, and any amounts remaining from assessments on the Federal Home Loan Banks pursuant to section 1438(b) 2 of this title), shall, upon such effective date, be treated for purposes of this subsection as amounts received from assessments under this section. (6) Treasury investments (A) Authority The Director may request the Secretary of the Treasury to invest such portions of amounts received by the Director from as- sessments paid under this section that, in the Director’s discretion, are not required to meet the current working needs of the Agen- cy. (B) Government obligations Pursuant to a request under subparagraph (A), the Secretary of the Treasury shall in- vest such amounts in Government obliga- tions guaranteed as to principal and interest by the United States with maturities suit- able to the needs of the Agency and bearing interest at a rate determined by the Sec- retary of the Treasury taking into consider- ation current market yields on outstanding marketable obligations of the United States of comparable maturity. (g) Budget and financial management (1) Financial operating plans and forecasts The Director shall provide to the Director of the Office of Management and Budget copies of the Director’s financial operating plans and forecasts, as prepared by the Director in the ordinary course of the Agency’s operations, and copies of the quarterly reports of the Agency’s financial condition and results of op- erations, as prepared by the Director in the or- dinary course of the Agency’s operations. (2) Financial statements The Agency shall prepare annually a state- ment of— (A) assets and liabilities and surplus or deficit; (B) income and expenses; and (C) sources and application of funds. (3) Financial management systems The Agency shall implement and maintain financial management systems that— (A) comply substantially with Federal fi- nancial management systems requirements and applicable Federal accounting stand- ards; and (B) use a general ledger system that ac- counts for activity at the transaction level. (4) Assertion of internal controls The Director shall provide to the Comp- troller General of the United States an asser- tion as to the effectiveness of the internal con- trols that apply to financial reporting by the Agency, using the standards established in section 3512(c) of title 31. (5) Rule of construction This subsection may not be construed as im- plying any obligation on the part of the Direc- tor to consult with or obtain the consent or approval of the Director of the Office of Man- agement and Budget with respect to any re- port, plan, forecast, or other information re- ferred to in paragraph (1) or any jurisdiction or oversight over the affairs or operations of the Agency. (h) Audit of Agency (1) In general The Comptroller General shall annually audit the financial transactions of the Agency in accordance with the United States gen- erally accepted government auditing stand- ards as may be prescribed by the Comptroller General of the United States. The audit shall be conducted at the place or places where ac- counts of the Agency are normally kept. The representatives of the Government Account- ability Office shall have access to the per- sonnel and to all books, accounts, documents, papers, records (including electronic records), reports, files, and all other papers, automated data, things, or property belonging to or under the control of or used or employed by the Agency pertaining to its financial trans- actions and necessary to facilitate the audit, and such representatives shall be afforded full facilities for verifying transactions with the balances or securities held by depositories, fis- cal agents, and custodians. All such books, ac- counts, documents, records, reports, files, pa- pers, and property of the Agency shall remain in possession and custody of the Agency. The Comptroller General may obtain and duplicate any such books, accounts, documents, records, working papers, automated data and files, or other information relevant to such audit with- out cost to the Comptroller General and the Comptroller General’s right of access to such information shall be enforceable pursuant to section 716(c) of title 31. (2) Report The Comptroller General shall submit to the Congress a report of each annual audit con- Page 1655 TITLE 12—BANKS AND BANKING § 4517 ducted under this subsection. The report to the Congress shall set forth the scope of the audit and shall include the statement of assets and liabilities and surplus or deficit, the state- ment of income and expenses, the statement of sources and application of funds, and such comments and information as may be deemed necessary to inform Congress of the financial operations and condition of the Agency, to- gether with such recommendations with re- spect thereto as the Comptroller General may deem advisable. A copy of each report shall be furnished to the President and to the Agency at the time submitted to the Congress. (3) Assistance and costs For the purpose of conducting an audit under this subsection, the Comptroller Gen- eral may, in the discretion of the Comptroller General, employ by contract, without regard to section 6101 of title 41, professional services of firms and organizations of certified public accountants for temporary periods or for spe- cial purposes. Upon the request of the Comp- troller General, the Director of the Agency shall transfer to the Government Account- ability Office from funds available, the amount requested by the Comptroller General to cover the full costs of any audit and report conducted by the Comptroller General. The Comptroller General shall credit funds trans- ferred to the account established for salaries and expenses of the Government Account- ability Office, and such amount shall be avail- able upon receipt and without fiscal year limi- tation to cover the full costs of the audit and report. (Pub. L. 102–550, title XIII, § 1316, Oct. 28, 1992, 106 Stat. 3947; Pub. L. 104–134, title I, § 101(e) [title II, § 211], Apr. 26, 1996, 110 Stat. 1321–257, 1321–288; renumbered title I, Pub. L. 104–140, § 1(a), May 2, 1996, 110 Stat. 1327; Pub. L. 110–289, div. A, title I, § 1106, July 30, 2008, 122 Stat. 2669.) Editorial Notes REFERENCES IN TEXT The Federal Housing Finance Regulatory Reform Act of 2008, referred to in subsec. (a)(4), is div. A of Pub. L. 110–289, July 30, 2008, 122 Stat. 2659. Title III of div. A of the Pub. L. 110–289 is set out as a note under section 4511 of this title. For complete classification of Pub. L. 110–289 to the Code, see Short Title note under section 4501 of this title and Tables. This Act, referred to in subsec. (c)(2), (3), is Pub. L. 102–550, Oct. 28, 1992, 106 Stat. 3672, known as the Hous- ing and Community Development Act of 1992. For com- plete classification of this Act to the Code, see Short Title of 1992 Amendment note set out under section 5301 of Title 42, The Public Health and Welfare, and Tables. The effective date of the Federal Housing Finance Regulatory Reform Act of 2008, referred to in subsec. (f)(5), probably means the date of enactment of div. A of Pub. L. 110–289, which was approved July 30, 2008. Section 1438(b) of this title, referred to in subsec. (f)(5), was repealed by Pub. L. 110–289, div. A, title II, § 1204(2), July 30, 2008, 122 Stat. 2786. CODIFICATION In subsec. (h)(3), ‘‘section 6101 of title 41’’ substituted for ‘‘section 3709 of the Revised Statutes of the United States (41 U.S.C. 5)’’ on authority of Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts. AMENDMENTS 2008—Subsec. (a). Pub. L. 110–289, § 1106(1), added sub- sec. (a) and struck out former subsec. (a). Prior to amendment, text read as follows: ‘‘The Director may, to the extent provided in appropriation Acts, establish and collect from the enterprises annual assessments in an amount not exceeding the amount sufficient to pro- vide for reasonable costs and expenses of the Office, in- cluding the expenses of any examinations under section 4517 of this title. The initial annual assessment shall include any startup costs of the Office and any antici- pated costs and expenses of the Office for the following fiscal year.’’ Subsec. (b)(2) to (4). Pub. L. 110–289, § 1106(2), realigned margins, added par. (2), and redesignated former pars. (2) and (3) as (3) and (4), respectively. Subsec. (c). Pub. L. 110–289, § 1106(3), added subsec. (c) and struck out former subsec. (c). Prior to amendment, text read as follows: ‘‘The semiannual payments made pursuant to subsection (b) of this section by any enter- prise that is not classified (for purposes of subchapter II of this chapter) as adequately capitalized may be in- creased, as necessary, in the discretion of the Director to pay additional estimated costs of regulation of the enterprise.’’ Subsec. (d). Pub. L. 110–289, § 1106(4), substituted ‘‘Ex- cept with respect to amounts collected pursuant to sub- section (a)(3), if’’ for ‘‘If’’. Subsecs. (e) to (h). Pub. L. 110–289, § 1106(5), added sub- secs. (e) to (h) and struck out former subsecs. (e) to (g) which related, respectively, to initial special assess- ment, the Federal Housing Enterprises Oversight Fund, and budget and financial reports. 1996—Subsec. (b)(2). Pub. L. 104–134 added par. (2) and struck out heading and text of former par. (2). Text read as follows: ‘‘The annual assessment shall be pay- able semiannually on September 1 and March 1 of the year for which the assessment is made.’’ Statutory Notes and Related Subsidiaries NON-REDUCTION OF FIRST ANNUAL ASSESSMENT Pub. L. 103–124, title II, Oct. 28, 1993, 107 Stat. 1290, provided that notwithstanding the last sentence of sub- sec. (e) of this section, the amount of this first annual assessment was not to be reduced by any part of the amount of the initial special assessment under subsec. (e). § 4517. Examinations (a) Annual examination The Director shall annually conduct an on-site examination under this section of each regu- lated entity to determine the condition of the regulated entity for the purpose of ensuring its financial safety and soundness. (b) Other examinations In addition to annual examinations under sub- section (a), the Director may conduct an exam- ination under this section of a regulated entity whenever the Director determines that an exam- ination is necessary or appropriate. (c) Examiners The Director shall appoint examiners to con- duct examinations under this section. The Di- rector may contract with the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, or the Federal Deposit Insur- ance Corporation for the services of examiners to conduct examinations under this section. The Director shall reimburse such agencies for any costs of providing examiners from amounts available in the Federal Housing Enterprises Oversight Fund.