12 U.S.C. § 4618 — Notice of classification and enforcement

Page 1712 TITLE 12—BANKS AND BANKING § 4618 1 See References in Text note below. (k) Prohibition of charter revocation In no case may the receiver appointed pursu- ant to this section revoke, annul, or terminate the charter of an enterprise. (Pub. L. 102–550, title XIII, § 1367, Oct. 28, 1992, 106 Stat. 3980; Pub. L. 110–289, div. A, title I, § 1145(a), July 30, 2008, 122 Stat. 2734.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (a)(4)(D) and (d)(8)(A), was in the original ‘‘this title’’, meaning title XIII of Pub. L. 102–550, Oct. 28, 1992, 106 Stat. 3941, which is classified principally to this chapter. For com- plete classification of title XIII to the Code, see Short Title note set out under section 4501 of this title and Tables. Rule 65 of the Federal Rules of Civil Procedure, re- ferred to in subsec. (b)(16), (17), is set out in the Appen- dix to Title 28, Judiciary and Judicial Procedure. Sections 4402 through 4407 of this title, referred to in subsec. (b)(19)(A), was in the original ‘‘sections 402 through 407 of the Federal Deposit Insurance Corpora- tion Improvement Act of 1991 (12 U.S.C. 4402 through 4407)’’, and was translated as reading ‘‘sections 402 through 407A of the Federal Deposit Insurance Corpora- tion Improvement Act of 1991’’, meaning sections 402 to 407A of Pub. L. 102–242, which are classified to sections 4402 to 4407 of this title, to reflect the probable intent of Congress and the renumbering of section 407 of the Act as section 407A by Pub. L. 109–8, title IX, § 906(d)(1), Apr. 20, 2005, 119 Stat. 169. The Gramm-Leach-Bliley Act, referred to in subsec. (d)(14), is Pub. L. 106–102, Nov. 12, 1999, 113 Stat. 1338. For complete classification of this Act to the Code, see Short Title of 1999 Amendment note set out under sec- tion 1811 of this title and Tables. The Legal Certainty for Bank Products Act of 2000, referred to in subsec. (d)(14), is title IV of H.R. 5660, as enacted by Pub. L. 106–554, § 1(a)(5), Dec. 21, 2000, 114 Stat. 2763, 2763A–457, which is classified to sections 27 to 27f of Title 7, Agriculture. For complete classifica- tion of this Act to the Code, see Short Title of 2000 Amendment note set out under section 1 of Title 7 and Tables. The Commodity Exchange Act, referred to in subsec. (d)(14), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, which is classified generally to chapter 1 (§ 1 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and Tables. The Federal National Mortgage Association Charter Act, referred to in subsec. (i)(2)(A)(i)(I), is title III of act June 27, 1934, ch. 847, 48 Stat. 1252, which is classi- fied generally to subchapter III (§ 1716 et seq.) of chap- ter 13 of this title. For complete classification of this Act to the Code, see Short Title note set out under sec- tion 1716 of this title and Tables. This Act, referred to in subsec. (i)(2)(A)(i)(II), (ii)(II), is Pub. L. 102–550, Oct. 28, 1992, 106 Stat. 3672, known as the Housing and Community Development Act of 1992. For complete classification of this Act to the Code, see Short Title of 1992 Amendment note set out under sec- tion 5301 of Title 42, The Public Health and Welfare, and Tables. The Federal Home Loan Mortgage Corporation Char- ter Act, referred to in subsec. (i)(2)(A)(ii)(I), probably means the Federal Home Loan Mortgage Corporation Act, title III of Pub. L. 91–351, July 24, 1970, 84 Stat. 451, which is classified generally to chapter 11A (§ 1451 et seq.) of this title. For complete classification of this Act to the Code, see Short Title and Statement of Pur- pose note set out under section 1451 of this title and Ta- bles. AMENDMENTS 2008—Pub. L. 110–289 amended section generally. Prior to amendment, section related to appointment of con- servators for critically undercapitalized enterprises. § 4618. Notice of classification and enforcement action (a) Notice Before taking any action referred to in sub- section (b), the Director shall provide to the reg- ulated entity written notice of the proposed ac- tion, which states the reasons for the proposed action and the information on which the pro- posed action is based. (b) Applicability The requirements of subsection (a) shall apply to the following actions: (1) Classification or reclassification of a reg- ulated entity within a particular capital clas- sification under section 4614 of this title. (2) Any discretionary supervisory action pur- suant to section 4615 of this title. (3) Any discretionary supervisory action pur- suant to section 4616 of this title except a deci- sion to appoint a conservator under section 4616(b)(6) 1 of this title. Notice of classification under paragraph (1) and notice of supervisory actions under paragraph (2) or (3) may be provided together in a single notice under subsection (a). (c) Response period (1) In general During the 30-day period beginning on the date that a regulated entity is provided notice under subsection (a) of a proposed action, the regulated entity may submit to the Director any information relevant to the action that the regulated entity considers appropriate for consideration by the Director in determining whether to take such action. The Director may, at the discretion of the Director, hold an informal administrative hearing to receive and discuss such information and the proposed determination. (2) Extended period The Director may extend the period under paragraph (1) for good cause for not more than 30 additional days. (3) Shortened period The Director may shorten the period under paragraph (1) if the Director determines that the condition of the regulated entity so re- quires or the regulated entity consents. (4) Failure to respond The failure of a regulated entity to provide information during the response period under this subsection (as extended or shortened) shall waive any right of the regulated entity to comment on the proposed action of the Di- rector. (d) Consideration of information and determina- tion After the expiration of the response period under subsection (c) or upon receipt of informa- tion provided during such period by the regu- lated entity, whichever occurs earlier, the Di- rector shall determine whether to take the ac- tion proposed, taking into consideration any rel- Page 1713 TITLE 12—BANKS AND BANKING § 4623 evant information submitted by the regulated entity during the response period. The Director shall provide written notice of a determination to take action and the reasons for such deter- mination to the regulated entity, the Com- mittee on Banking, Finance and Urban Affairs of the House of Representatives, and the Com- mittee on Banking, Housing, and Urban Affairs of the Senate. Such notice shall respond to any information submitted during the response pe- riod. (e) Effective date of actions An action referred to in subsection (b) shall take effect upon receipt by the regulated entity of notice of the determination of the Director under subsection (d), unless otherwise provided in such notice. (Pub. L. 102–550, title XIII, § 1368, Oct. 28, 1992, 106 Stat. 3980; Pub. L. 110–289, div. A, title I, § 1145(b)(1), July 30, 2008, 122 Stat. 2767.) Editorial Notes REFERENCES IN TEXT Section 4616(b)(6) of this title, referred to in subsec. (b)(3), was repealed and a new par. (6) added by Pub. L. 110–289, div. A, title I, § 1144(5)(C), (D), July 30, 2008, 122 Stat. 2733. The new par. (6) does not relate to appoint- ment of a conservator. AMENDMENTS 2008—Pub. L. 110–289 substituted ‘‘a regulated entity’’ for ‘‘an enterprise’’ and ‘‘the regulated entity’’ for ‘‘the enterprise’’ wherever appearing. Statutory Notes and Related Subsidiaries CHANGE OF NAME Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Com- mittee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 104–14, set out as a note preceding section 21 of Title 2, The Con- gress. Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Rep- resentatives, and jurisdiction over matters relating to securities and exchanges and insurance generally trans- ferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001. §§ 4619 to 4621. Repealed. Pub. L. 110–289, div. A, title I, § 1145(b)(4), July 30, 2008, 122 Stat. 2767 Section 4619, Pub. L. 102–550, title XIII, § 1369, Oct. 28, 1992, 106 Stat. 3981; Pub. L. 110–289, div. A, title I, § 1161(a)(6), July 30, 2008, 122 Stat. 2779, related to ap- pointment of conservators. Section 4620, Pub. L. 102–550, title XIII, § 1369A, Oct. 28, 1992, 106 Stat. 3983, related to powers of conserva- tors. Section 4621, Pub. L. 102–550, title XIII, § 1369B, Oct. 28, 1992, 106 Stat. 3984, related to liability protection for conservators. § 4622. Capital restoration plans (a) Contents Each capital restoration plan submitted under this subchapter shall set forth a feasible plan for restoring the core capital of the regulated enti- ty subject to the plan to an amount not less than the minimum capital level for the regu- lated entity and for restoring the total capital of the regulated entity to an amount not less than the risk-based capital level for the regu- lated entity. Each capital restoration plan shall— (1) specify the level of capital the regulated entity will achieve and maintain; (2) describe the actions that the regulated entity will take to become classified as ade- quately capitalized; (3) establish a schedule for completing the actions set forth in the plan; (4) specify the types and levels of activities (including existing and new programs) in which the regulated entity will engage during the term of the plan; and (5) describe the actions that the regulated entity will take to comply with any manda- tory and discretionary requirements imposed under this subchapter. (b) Deadlines for submission The Director shall, by regulation, establish a deadline for submission of a capital restoration plan, which may not be more than 45 days after the regulated entity is notified in writing that a plan is required. The regulations shall provide that the Director may extend the deadline to the extent that the Director determines it nec- essary. Any extension of the deadline shall be in writing and for a time certain. (c) Approval The Director shall review each capital restora- tion plan submitted under this section and, not later than 30 days after submission of the plan, approve or disapprove the plan. The Director may extend the period for approval or dis- approval for any plan for a single additional 30- day period if the Director determines it nec- essary. The Director shall provide written no- tice to any regulated entity submitting a plan of the approval or disapproval of the plan (which shall include the reasons for any disapproval of the plan) and of any extension of the period for approval or disapproval. (d) Resubmission If the Director disapproves the initial capital restoration plan submitted by the regulated en- tity, the regulated entity shall submit an amended plan acceptable to the Director within 30 days or such longer period that the Director determines is in the public interest. (Pub. L. 102–550, title XIII, § 1369C, Oct. 28, 1992, 106 Stat. 3985; Pub. L. 110–289, div. A, title I, § 1145(b)(2), July 30, 2008, 122 Stat. 2767.) Editorial Notes AMENDMENTS 2008—Pub. L. 110–289 substituted ‘‘regulated entity’’ for ‘‘enterprise’’ wherever appearing. § 4623. Judicial review of Director action (a) Jurisdiction (1) Filing of petition A regulated entity that is not classified as critically undercapitalized and is the subject of a classification under section 4614 of this