12 U.S.C. § 4010 — Civil liability

Page 1591 TITLE 12—BANKS AND BANKING § 4010 is classified generally to chapter 14 (§ 1751 et seq.) of this title. For complete classification of this Act to the Code, see section 1751 of this title and Tables. AMENDMENTS 1991—Subsec. (a). Pub. L. 102–242, § 212(h)(2), inserted at end ‘‘The terms used in paragraph (1) that are not defined in this chapter or otherwise defined in section 3(s) of the Federal Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the meaning given to them in section 1(b) of the International Banking Act of 1978 (12 U.S.C. 3101).’’ Subsec. (a)(1). Pub. L. 102–242, § 212(h)(1), added par. (1) and struck out former par. (1) which read as follows: ‘‘section 8 of the Federal Deposit Insurance Act in the case of— ‘‘(A) national banks, by the Comptroller of the Cur- rency; ‘‘(B) member banks of the Federal Reserve System (other than national banks), by the Board of Gov- ernors of the Federal Reserve System; and ‘‘(C) banks insured by the Federal Deposit Insur- ance Corporation (other than members of the Federal Reserve System), by the Board of Directors of the Federal Deposit Insurance Corporation;’’. 1989—Subsec. (a)(2). Pub. L. 101–73 amended par. (2) generally. Prior to amendment, par. (2) read as follows: ‘‘section 5(d) of the Home Owners’ Loan Act of 1933, sec- tion 407 of the National Housing Act, and section 17 of the Federal Home Loan Bank Act, by the Federal Home Loan Bank Board (acting directly or through the Fed- eral Savings and Loan Insurance Corporation), in the case of any institution subject to any of those provi- sions; and’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Sept. 1, 1988, see section 613(b) of Pub. L. 100–86, set out as a note under section 4001 of this title. § 4010. Civil liability (a) Civil liability Except as otherwise provided in this section, any depository institution which fails to comply with any requirement imposed under this chap- ter or any regulation prescribed under this chap- ter with respect to any person other than an- other depository institution is liable to such person in an amount equal to the sum of— (1) any actual damage sustained by such per- son as a result of the failure; (2)(A) in the case of an individual action, such additional amount as the court may allow, except that the liability under this sub- paragraph shall not be less than $100 nor greater than $1,000; or (B) in the case of a class action, such amount as the court may allow, except that— (i) as to each member of the class, no min- imum recovery shall be applicable; and (ii) the total recovery under this subpara- graph in any class action or series of class actions arising out of the same failure to comply by the same depository institution shall not be more than the lesser of $500,000 or 1 percent of the net worth of the deposi- tory institution involved; and (3) in the case of any successful action to en- force the foregoing liability, the costs of the action, together with a reasonable attorney’s fee as determined by the court. (b) Class action awards In determining the amount of any award in any class action, the court shall consider, among other relevant factors— (1) the amount of any actual damages award- ed; (2) the frequency and persistence of failures of compliance; (3) the resources of the depository institu- tion; (4) the number of persons adversely affected; and (5) the extent to which the failure of compli- ance was intentional. (c) Bona fide errors (1) General rule A depository institution may not be held lia- ble in any action brought under this section for a violation of this chapter if the depository institution demonstrates by a preponderance of the evidence that the violation was not in- tentional and resulted from a bona fide error, notwithstanding the maintenance of proce- dures reasonably adapted to avoid any such error. (2) Examples Examples of a bona fide error include cler- ical, calculation, computer malfunction and programming, and printing errors, except that an error of legal judgment with respect to a depository institution’s obligation under this chapter is not a bona fide error. (d) Jurisdiction Any action under this section may be brought in any United States district court, or in any other court of competent jurisdiction, within one year after the date of the occurrence of the violation involved. (e) Reliance on Board rulings No provision of this section imposing any li- ability shall apply to any act done or omitted in good faith in conformity with any rule, regula- tion, or interpretation thereof by the Board of Governors of the Federal Reserve System, not- withstanding the fact that after such act or omission has occurred, such rule, regulation, or interpretation is amended, rescinded, or deter- mined by judicial or other authority to be in- valid for any reason. (f) Authority to establish rules regarding losses and liability among depository institutions The Board is authorized to impose on or allo- cate among depository institutions the risks of loss and liability in connection with any aspect of the payment system, including the receipt, payment, collection, or clearing of checks, and any related function of the payment system with respect to checks. Liability under this sub- section shall not exceed the amount of the check giving rise to the loss or liability, and, where there is bad faith, other damages, if any, suffered as a proximate consequence of any act or omission giving rise to the loss or liability. (Pub. L. 100–86, title VI, § 611, Aug. 10, 1987, 101 Stat. 650.) Page 1592 TITLE 12—BANKS AND BANKING § 4101 Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Sept. 1, 1988, see section 613(b) of Pub. L. 100–86, set out as a note under section 4001 of this title. CHAPTER 42—LOW-INCOME HOUSING PRES- ERVATION AND RESIDENT HOMEOWNER- SHIP SUBCHAPTER I—PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL HOUSING ACT Sec. 4101. General prepayment limitation. 4102. Notice of intent. 4103. Appraisal and preservation value of eligible low-income housing. 4104. Annual authorized return and preservation rents. 4105. Federal cost limits and limitations on plans of action. 4106. Information from Secretary. 4107. Plan of action. 4108. Prepayment and voluntary termination. 4109. Incentives to extend low-income use. 4110. Incentives for transfer to qualified pur- chasers. 4111. Mandatory sale for housing exceeding Federal cost limits. 4112. Criteria for approval of plan of action involv- ing incentives. 4113. Assistance for displaced tenants. 4114. Permissible prepayment or voluntary termi- nation and modification of commitments. 4115. Timetable for approval of plan of action. 4116. Resident homeownership program. 4117. Delegated responsibility to State agencies. 4118. Consultations with other interested parties. 4119. Definitions. 4120. Notice to tenants. 4121. Definitions of qualified and priority pur- chaser and related party rule. 4122. Preemption of State and local laws. 4123. Severability. 4124. Authorization of appropriations. 4125. State preservation project assistance. SUBCHAPTER II—TECHNICAL ASSISTANCE AND CAPACITY BUILDING 4141. Authority. 4142. Purposes. 4143. Grants for building resident capacity and funding predevelopment costs. 4144. Grants for other purposes. 4145. Delivery of assistance through inter- mediaries. 4146. Definitions. 4147. Funding. Editorial Notes CODIFICATION Subtitles A and B of the Low-Income Housing Preser- vation and Resident Homeownership Act of 1990, Pub. L. 100–242, title II, as revised generally by Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4249, comprise subchapter I of this chapter. Prior to the gen- eral revision by Pub. L. 101–625 subtitles A and B (§§ 201–235) of the Emergency Low Income Housing Pres- ervation Act of 1987, Pub. L. 100–242, title II, Feb. 5, 1988, 101 Stat. 1877, as amended by Pub. L. 100–628, title X, §§ 1021–1027, Nov. 7, 1988, 102 Stat. 3270, 3271; Pub. L. 101–235, title II, §§ 201, 202(a)–(c), 203(b), Dec. 15, 1989, 103 Stat. 2037, 2038; Pub. L. 101–402, § 1, Oct. 1, 1990, 104 Stat. 866; Pub. L. 101–494, §§ 1(c), 2(a), Oct. 31, 1990, 104 Stat. 1185, were set out as a note under section 1715l of this title and amended section 1715z–6 of this title. Subtitle C of the Low-Income Housing Preservation and Resident Homeownership Act of 1990, Pub. L. 100–242, title II, as added by Pub. L. 102–550, title III, § 312, Oct. 28, 1992, 106 Stat. 3765, comprises subchapter II of this chapter. Another subtitle C of title II of Pub. L. 100–242 amended sections 1472, 1485, and 1487 of Title 42, The Public Health and Welfare. SUBCHAPTER I—PREPAYMENT OF MORT- GAGES INSURED UNDER NATIONAL HOUSING ACT § 4101. General prepayment limitation (a) Prepayment and termination An owner of eligible low-income housing may prepay, and a mortgagee may accept prepay- ment of, a mortgage on such housing only in ac- cordance with a plan of action approved by the Secretary under this subchapter or in accord- ance with section 4114 of this title. An insurance contract with respect to eligible low-income housing may be terminated pursuant to section 1715t of this title only in accordance with a plan of action approved by the Secretary under this subchapter or in accordance with section 4114 of this title. (b) Foreclosure A mortgagee may foreclose the mortgage on, or acquire by deed in lieu of foreclosure, any eli- gible low-income housing project only if the mortgagee also conveys title to the project to the Secretary in connection with a claim for in- surance benefits. (c) Effect of unauthorized prepayment Any prepayment of a mortgage on eligible low-income housing or termination of the mort- gage insurance on such housing not in compli- ance with the provisions of this subchapter shall be null and void and any low-income afford- ability restrictions on the housing shall con- tinue to apply to the housing. (Pub. L. 100–242, title II, § 211, as added Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4249.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 101–625, title VI, § 605, Nov. 28, 1990, 104 Stat. 4278, provided that: ‘‘This subtitle [subtitle A (§§ 601–605) of title VI of Pub. L. 101–625, enacting this chapter, amending sections 1715z–6 and 1715z–15 of this title and section 1437f of Title 42, The Public Health and Welfare, and enacting provisions set out below] shall take effect on the date of the enactment of this Act [Nov. 28, 1990].’’ SHORT TITLE Pub. L. 100–242, title II, § 201, as added by Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4249, provided that: ‘‘This title [enacting this chapter, amending section 1715z–15 of this title and sections 1437f, 1472, 1485, and 1487 of Title 42, The Public Health and Welfare, and enacting provisions set out below] may be cited as the ‘Low-Income Housing Preservation and Resident Homeownership Act of 1990’.’’ APPLICABILITY Pub. L. 100–242, title II, § 235, as added by Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4274, provided that: ‘‘Subject to section 605 of the Cranston- Gonzalez National Affordable Housing Act [Pub. L. 101–625, set out above], the requirements of this subtitle [subtitle B (§§ 211–235) of title II of Pub. L. 100–242, en-