12 U.S.C. § 4518a — Limitation on bonuses to executives of

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