§ 1818.
(b)
Cease-and-desist proceedings
(1)
If, in the opinion of the appropriate Federal banking agency, any insured depository institution, depository institution which has insured deposits, or any institution-affiliated party is engaging or has engaged, or the agency has reasonable cause to believe that the depository institution or any institution-affiliated party is about to engage, in an unsafe or unsound practice in conducting the business of such depository institution, or is violating or has violated, or the agency has reasonable cause to believe that the depository institution or any institution-affiliated party is about to violate, a law, rule, or regulation, or any condition imposed in writing by a Federal banking agency in connection with any action on any application, notice, or other request by the depository institution or institution-affiliated party, or any written agreement entered into with the agency, the appropriate Federal banking agency for the depository institution may issue and serve upon the depository institution or such party a notice of charges in respect thereof. The notice shall contain a statement of the facts constituting the alleged violation or violations or the unsafe or unsound practice or practices, and shall fix a time and place at which a hearing will be held to determine whether an order to cease and desist therefrom should issue against the depository institution or the institution-affiliated party. Such hearing shall be fixed for a date not earlier than thirty days nor later than sixty days after service of such notice unless an earlier or a later date is set by the agency at the request of any party so served. Unless the party or parties so served shall appear at the hearing personally or by a duly authorized representative, they shall be deemed to have consented to the issuance of the cease-and-desist order. In the event of such consent, or if upon the record made at any such hearing, the agency shall find that any violation or unsafe or unsound practice specified in the notice of charges has been established, the agency may issue and serve upon the depository institution or the institution-affiliated party an order to cease and desist from any such violation or practice. Such order may, by provisions which may be mandatory or otherwise, require the depository institution or its institution-affiliated parties to cease and desist from the same, and, further, to take affirmative action to correct the conditions resulting from any such violation or practice.
(2)
A cease-and-desist order shall become effective at the expiration of thirty days after the service of such order upon the depository institution or other person concerned (except in the case of a cease-and-desist order issued upon consent, which shall become effective at the time specified therein), and shall remain effective and enforceable as provided therein, except to such extent as it is stayed, modified, terminated, or set aside by action of the agency or a reviewing court.
(3)
This subsection, subsections (c) through (s) and subsection (u) of this section, and
section 1831aa of this title shall apply to any bank holding company, and to any subsidiary (other than a bank) of a bank holding company, as those terms are defined in the Bank Holding Company Act of 1956 [
12 U.S.C. 1841 et seq.], any savings and loan holding company and any subsidiary (other than a depository institution) of a savings and loan holding company (as such terms are defined in
section 1467a of this title)),
2
So in original. The second closing parenthesis probably should not appear.
any noninsured State member bank and to any organization organized and operated under section 25(a)
1 of the Federal Reserve Act [
12 U.S.C. 611 et seq.] or operating under section 25 of the Federal Reserve Act [
12 U.S.C. 601 et seq.], in the same manner as they apply to a State member insured bank. Nothing in this subsection or in subsection (c) of this section shall authorize any Federal banking agency, other than the Board of Governors of the Federal Reserve System, to issue a notice of charges or cease-and-desist order against a bank holding company or any subsidiary thereof (other than a bank or subsidiary of that bank) or against a savings and loan holding company or any subsidiary thereof (other than a depository institution or a subsidiary of such depository institution).
(4)
This subsection, subsections (c) through (s) and subsection (u) of this section, and
section 1831aa of this title shall apply to any foreign bank or company to which subsection (a) of
section 3106 of this title applies and to any subsidiary (other than a bank) of any such foreign bank or company in the same manner as they apply to a bank holding company and any subsidiary thereof (other than a bank) under paragraph (3) of this subsection. For the purposes of this paragraph, the term “subsidiary” shall have the meaning assigned to it in section 2 of the Bank Holding Company Act of 1956 [
12 U.S.C. 1841].
(5)
This section shall apply, in the same manner as it applies to any insured depository institution for which the appropriate Federal banking agency is the Comptroller of the Currency, to any national banking association chartered by the Comptroller of the Currency, including an uninsured association.
(6)
Affirmative action to correct conditions resulting from violations or practices.—
The authority to issue an order under this subsection and subsection (c) which requires an insured depository institution or any institution-affiliated party to take affirmative action to correct or remedy any conditions resulting from any violation or practice with respect to which such order is issued includes the authority to require such depository institution or such party to—
(A)
make restitution or provide reimbursement, indemnification, or guarantee against loss if—
(i)
such depository institution or such party was unjustly enriched in connection with such violation or practice; or
(ii)
the violation or practice involved a reckless disregard for the law or any applicable regulations or prior order of the appropriate Federal banking agency;
(B)
restrict the growth of the institution;
(C)
dispose of any loan or asset involved;
(D)
rescind agreements or contracts; and
(E)
employ qualified officers or employees (who may be subject to approval by the appropriate Federal banking agency at the direction of such agency); and
(F)
take such other action as the banking agency determines to be appropriate.
(7)
Authority to limit activities.—
The authority to issue an order under this subsection or subsection (c) includes the authority to place limitations on the activities or functions of an insured depository institution or any institution-affiliated party.
(8)
Unsatisfactory asset quality, management, earnings, or liquidity as unsafe or unsound practice.—
If an insured depository institution receives, in its most recent report of examination, a less-than-satisfactory rating for asset quality, management, earnings, or liquidity, the appropriate Federal banking agency may (if the deficiency is not corrected) deem the institution to be engaging in an unsafe or unsound practice for purposes of this subsection.
(10)
Standard for certain orders.—
No authority under this subsection or subsection (c) to prohibit any institution-affiliated party from withdrawing, transferring, removing, dissipating, or disposing of any funds, assets, or other property may be exercised unless the appropriate Federal banking agency meets the standards of Rule 65 of the Federal Rules of Civil Procedure, without regard to the requirement of such rule that the applicant show that the injury, loss, or damage is irreparable and immediate.
([Sept. 21, 1950, ch. 967, § 2][8], [64 Stat. 879]; [Pub. L. 89–695, title II], §§ 202, 204, Oct. 16, 1966, [80 Stat. 1046], 1054; [Pub. L. 93–495, title I, § 110], Oct. 28, 1974, [88 Stat. 1506]; [Pub. L. 95–369], §§ 6(c)(14), (15), 11, Sept. 17, 1978, [92 Stat. 618], 624; [Pub. L. 95–630, title I], §§ 107(a)(1), (b), (c)(1), (d)(1), (e)(1), 111(a), title II, § 208(a), title III, §§ 303, 304, Nov. 10, 1978, [92 Stat. 3649], 3653, 3654, 3656, 3660, 3665, 3674, 3676; [Pub. L. 97–320, title I, § 113(g)], (h), title IV, §§ 404(c), 424(c), (d)(6), (e), 425(b), (c), 427(d), 433(a), Oct. 15, 1982, [96 Stat. 1473], 1474, 1512, 1523–1527; [Pub. L. 99–570, title I, § 1359(a)], Oct. 27, 1986, [100 Stat. 3207–27]; [Pub. L. 101–73, title II, § 201], title IX, §§ 901(b)(1), (d), 902(a), 903(a), 904(a), 905(a), 906(a), 907(a), 908(a), 912, 913(a), 920(a), (c), 926, Aug. 9, 1989, [103 Stat. 187], 446, 450, 453, 457, 459, 462, 477, 482, 483, 488; [Pub. L. 101–647, title XXV], §§ 2521(b)(1), 2532(a), 2547(a)(1), (2), 2596(a), (b), Nov. 29, 1990, [104 Stat. 4864], 4880, 4886, 4887, 4908; [Pub. L. 102–233, title III, § 302(a)], Dec. 12, 1991, [105 Stat. 1767]; [Pub. L. 102–242, title I, § 131(c)(1)], (2), title III, §§ 302(e)(5), formerly (e)(4), 307, Dec. 19, 1991, [105 Stat. 2266], 2349, 2360; [Pub. L. 102–550, title XV], §§ 1503(a), 1504(a), title XVI, §§ 1603(d)(2)–(4), 1605(a)(5)(A), (11), Oct. 28, 1992, [106 Stat. 4048]