12 U.S.C. § 4519 — Authority to provide for review of regu-

Page 1658 TITLE 12—BANKS AND BANKING § 4518a (i) any legal or other professional ex- pense incurred in connection with any claim, proceeding, or action; (ii) the amount of, and any cost incurred in connection with, any settlement of any claim, proceeding, or action; and (iii) the amount of, and any cost in- curred in connection with, any judgment or penalty imposed with respect to any claim, proceeding, or action. (C) Payment The term ‘‘payment’’ includes— (i) any direct or indirect transfer of any funds or any asset; and (ii) any segregation of any funds or as- sets for the purpose of making, or pursu- ant to an agreement to make, any pay- ment after the date on which such funds or assets are segregated, without regard to whether the obligation to make such pay- ment is contingent on— (I) the determination, after such date, of the liability for the payment of such amount; or (II) the liquidation, after such date, of the amount of such payment. (6) Certain commercial insurance coverage not treated as covered benefit payment No provision of this subsection shall be con- strued as prohibiting any regulated entity from purchasing any commercial insurance policy or fidelity bond, except that, subject to any requirement described in paragraph (5)(A)(iii), such insurance policy or bond shall not cover any legal or liability expense of the regulated entity which is described in para- graph (5)(A). (Pub. L. 102–550, title XIII, § 1318, Oct. 28, 1992, 106 Stat. 3949; Pub. L. 110–289, div. A, title I, §§ 1113(a), 1114, July 30, 2008, 122 Stat. 2678, 2679.) Editorial Notes AMENDMENTS 2008—Pub. L. 110–289, § 1113(a)(1), substituted ‘‘and withholding of executive’’ for ‘‘of excessive’’ in section catchline. Subsec. (a). Pub. L. 110–289, § 1113(a)(2), substituted ‘‘regulated entity’’ for ‘‘enterprise’’ and ‘‘regulated en- tities’’ for ‘‘enterprises’’. Subsecs. (b) to (d). Pub. L. 110–289, § 1113(a)(3), (4), added subsecs. (b) and (c) and redesignated former sub- sec. (b) as (d). Subsec. (e). Pub. L. 110–289, § 1114, added subsec. (e). Statutory Notes and Related Subsidiaries EQUITY IN GOVERNMENT COMPENSATION Pub. L. 114–93, Nov. 25, 2015, 129 Stat. 1310, provided that: ‘‘SECTION 1. SHORT TITLE. ‘‘This Act may be cited as the ‘Equity in Government Compensation Act of 2015’. ‘‘SEC. 2. DEFINITIONS. ‘‘In this Act: ‘‘(1) DIRECTOR.—The term ‘Director’ means the Di- rector of the Federal Housing Finance Agency. ‘‘(2) ENTERPRISE.—The term ‘enterprise’ means— ‘‘(A) the Federal National Mortgage Association and any affiliate thereof; and ‘‘(B) the Federal Home Loan Mortgage Corpora- tion and any affiliate thereof. ‘‘SEC. 3. REASONABLE PAY FOR CHIEF EXECUTIVE OFFICERS. ‘‘(a) SUSPENSION OF CURRENT COMPENSATION PACKAGE AND LIMITATION.—The Director shall suspend the com- pensation packages approved for 2015 for the chief exec- utive officers of each enterprise and, in lieu of such packages, subject to the limitation under subsection (b), establish the compensation and benefits for each such chief executive officer at the same level in effect for such officer as of January 1, 2015, and such com- pensation and benefits may not thereafter be increased. ‘‘(b) LIMITATION ON BONUSES.—Subsection (a) shall not be construed to affect the applicability of section 16 of the STOCK Act (12 U.S.C. 4518a) to the chief execu- tive officer of each enterprise. ‘‘(c) APPLICABILITY.—Subsection (a) shall only apply to a chief executive officer of an enterprise if the enter- prise is in conservatorship or receivership pursuant to section 1367 of the Federal Housing Enterprises Finan- cial Safety and Soundness Act of 1992 (12 U.S.C. 4617). ‘‘SEC. 4. FANNIE AND FREDDIE CHIEF EXECUTIVE OFFICERS NOT FEDERAL EMPLOYEES. ‘‘Any chief executive officer affected by any provision under section 3 shall not be considered a Federal em- ployee.’’ § 4518a. Limitation on bonuses to executives of Fannie Mae and Freddie Mac Notwithstanding any other provision in law, senior executives at the Federal National Mort- gage Association and the Federal Home Loan Mortgage Corporation are prohibited from re- ceiving bonuses during any period of con- servatorship for those entities on or after April 4, 2012. (Pub. L. 112–105, § 16, Apr. 4, 2012, 126 Stat. 303.) Editorial Notes CODIFICATION Section was enacted as part of the Representative Louise McIntosh Slaughter Stop Trading on Congres- sional Knowledge Act, also known as the STOCK Act, and not as part of the Federal Housing Enterprises Fi- nancial Safety and Soundness Act of 1992 which com- prises this chapter. § 4519. Authority to provide for review of regu- lated entities The Director may, on such terms and condi- tions as the Director deems appropriate, con- tract with any entity to conduct a review of the regulated entities. (Pub. L. 102–550, title XIII, § 1319, Oct. 28, 1992, 106 Stat. 3950; Pub. L. 109–291, § 4(b)(4), Sept. 29, 2006, 120 Stat. 1337; Pub. L. 110–289, div. A, title I, § 1105(d), July 30, 2008, 122 Stat. 2668; Pub. L. 111–203, title IX, § 939(b), July 21, 2010, 124 Stat. 1886.) Editorial Notes AMENDMENTS 2010—Pub. L. 111–203 struck out ‘‘that is a nationally recognized statistical rating organization, as such term is defined in section 78c(a) of title 15,’’ after ‘‘entity’’. 2008—Pub. L. 110–289 substituted ‘‘regulated entities’’ for ‘‘enterprises by rating organization’’ in section catchline and ‘‘regulated entities’’ for ‘‘enterprises’’ in text. 2006—Pub. L. 109–291 substituted ‘‘that is a nationally recognized statistical rating organization, as such term is defined in section 78c(a) of title 15’’ for ‘‘effectively Page 1659 TITLE 12—BANKS AND BANKING § 4520 1 See References in Text note below. recognized by the Division of Market Regulation of the Securities and Exchange Commission as a nationally recognized statistical rating organization for the pur- poses of the capital rules for broker-dealers’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective 2 years after July 21, 2010, see section 939(g) of Pub. L. 111–203, set out as a note under section 24a of this title. § 4520. Minority and women inclusion; diversity requirements (a) Office of Minority and Women Inclusion Each regulated entity shall establish an Office of Minority and Women Inclusion, or designate an office of the entity, that shall be responsible for carrying out this section and all matters of the entity relating to diversity in management, employment, and business activities in accord- ance with such standards and requirements as the Director shall establish. (b) Inclusion in all levels of business activities Each regulated entity shall develop and imple- ment standards and procedures to ensure, to the maximum extent possible, the inclusion and uti- lization of minorities (as such term is defined in section 1204(c) of the Financial Institutions Re- form, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note)) and women, and minority- and women-owned businesses (as such terms are de- fined in section 1441a(r)(4) 1 of this title) (includ- ing financial institutions, investment banking firms, mortgage banking firms, asset manage- ment firms, broker-dealers, financial services firms, underwriters, accountants, brokers, in- vestment consultants, and providers of legal services) in all business and activities of the reg- ulated entity at all levels, including in procure- ment, insurance, and all types of contracts (in- cluding contracts for the issuance or guarantee of any debt, equity, or mortgage-related securi- ties, the management of its mortgage and secu- rities portfolios, the making of its equity invest- ments, the purchase, sale and servicing of single- and multi-family mortgage loans, and the implementation of its affordable housing program and initiatives). The processes estab- lished by each regulated entity for review and evaluation for contract proposals and to hire service providers shall include a component that gives consideration to the diversity of the appli- cant. (c) Applicability This section shall apply to all contracts of a regulated entity for services of any kind, includ- ing services that require the services of invest- ment banking, asset management entities, broker-dealers, financial services entities, un- derwriters, accountants, investment consult- ants, and providers of legal services. (d) Inclusion in annual reports Each regulated entity shall include, in the an- nual report submitted by the entity to the Di- rector pursuant to section 1723a(k) of this title, section 1456(c) of this title, and section 1440 of this title, as applicable, detailed information de- scribing the actions taken by the entity pursu- ant to this section, which shall include a state- ment of the total amounts paid by the entity to third party contractors since the last such re- port and the percentage of such amounts paid to businesses described in subsection (b) of this sec- tion. (e) Outreach Each regulated entity shall establish a minor- ity outreach program to ensure the inclusion (to the maximum extent possible) in contracts en- tered into by the enterprises of minorities and women and businesses owned by minorities and women, including financial institutions, invest- ment banking firms, underwriters, accountants, brokers, and providers of legal services. (f) Diversity in Agency workforce The Agency shall take affirmative steps to seek diversity in its workforce at all levels of the agency consistent with the demographic di- versity of the United States, which shall in- clude— (1) heavily recruiting at historically Black colleges and universities, Hispanic-serving in- stitutions, women’s colleges, and colleges that typically serve majority minority populations; (2) sponsoring and recruiting at job fairs in urban communities, and placing employment advertisements in newspapers and magazines oriented toward women and people of color; (3) partnering with organizations that are fo- cused on developing opportunities for minori- ties and women to place talented young mi- norities and women in industry internships, summer employment, and full-time positions; and (4) where feasible, partnering with inner-city high schools, girls’ high schools, and high schools with majority minority populations to establish or enhance financial literacy pro- grams and provide mentoring. (Pub. L. 102–550, title XIII, § 1319A, Oct. 28, 1992, 106 Stat. 3950; Pub. L. 110–289, div. A, title I, §§ 1116, 1161(a)(2), July 30, 2008, 122 Stat. 2681, 2779.) Editorial Notes REFERENCES IN TEXT Section 1204(c) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, referred to in subsec. (b), is section 1204(c) of Pub. L. 101–73, which is set out as a note under section 1811 of this title. Section 1441a(r)(4) of this title, referred to in subsec. (b), was repealed by Pub. L. 111–203, title III, § 364(b), July 21, 2010, 124 Stat. 1555. AMENDMENTS 2008—Pub. L. 110–289, § 1116(1), substituted ‘‘Minority and women inclusion; diversity requirements’’ for ‘‘Equal opportunity in solicitation of contracts’’ in sec- tion catchline. Subsec. (a). Pub. L. 110–289, § 1161(a)(2)(A), which di- rected amendment of this section by striking out sub- sec. (a) designation and ‘‘In general’’ in subsec. (a) heading, could not be executed because of the prior amendment by Pub. L. 110–289, § 1116(2), (4). See below. Pub. L. 110–289, § 1116(2), (4), added subsec. (a) and re- designated former subsec. (a) as (e). Subsec. (b). Pub. L. 110–289, § 1161(a)(2)(B), which di- rected the striking out of subsec. (b), was not executed