12 USC 504 - Civil money penalty

U.S Code last checked for updates: May 03, 2024

§ 504.

Civil money penalty

(a)

First tier

(b)

Second tier

Notwithstanding subsection (a), any member bank which, and any institution-affiliated party (within the meaning of section 1813(u) of this title) with respect to such member bank who 1

 So in original. Probably should be followed by a dash.

(1)

(A)

commits any violation described in subsection (a);

(B)

recklessly engages in an unsafe or unsound practice in conducting the affairs of such member bank; or

(C)

breaches any fiduciary duty;

(2)

which violation, practice, or breach—

(A)

is part of a pattern of misconduct;

(B)

causes or is likely to cause more than a minimal loss to such member bank; or

(C)

results in pecuniary gain or other benefit to such party,

shall forfeit and pay a civil penalty of not more than $25,000 for each day during which such violation, practice, or breach continues.

(c)

Third tier

Notwithstanding subsections (a) and (b), any member bank which, and any institution-affiliated party (within the meaning of section 1813(u) of this title) with respect to such member bank who—

(1)

knowingly—

(A)

commits any violation described in subsection (a);

(B)

engages in any unsafe or unsound practice in conducting the affairs of such credit union; 2

 So in original. Probably should be “such member bank”.

(C)

breaches any fiduciary duty; and

(2)

knowingly or recklessly causes a substantial loss to such credit union ² or a substantial pecuniary gain or other benefit to such party by reason of such violation, practice, or breach,

shall forfeit and pay a civil penalty in an amount not to exceed the applicable maximum amount determined under subsection (d) for each day during which such violation, practice, or breach continues.

(d)

Maximum amounts of penalties for any violation described in subsection (c)

The maximum daily amount of any civil penalty which may be assessed pursuant to subsection (c) for any violation, practice, or breach described in such subsection is—

(1)

in the case of any person other than a member bank, an amount to not exceed $1,000,000; and

(2)

in the case of a member bank, an amount not to exceed the lesser of—

(A)

$1,000,000; or

(B)

1 percent of the total assets of such member bank.

(e)

Assessment; etc.

Any penalty imposed under subsection (a), (b), or (c) shall be assessed and collected 3

 So in original. Probably should be followed by a dash rather than “by”.

(1)

in the case of a national bank, by the Comptroller of the Currency; and

(2)

in the case of a State member bank, by the Board,

in the manner provided in subparagraphs (E), (F), (G), and (I) of section 1818(i)(2) of this title for penalties imposed (under such section) and any such assessment shall be subject to the provisions of such section.

(f)

Hearing

(g)

Disbursement

(h)

“Violate” defined

(i)

Regulations

(m)

 So in original. No subsecs. (j) to (l) have been enacted.

Notice under this section after separation from service

(Dec. 23, 1913, ch. 6, § 29, as added Pub. L. 95–630, title I, § 101, Nov. 10, 1978, 92 Stat. 3641; amended Pub. L. 97–320, title IV, § 424(c), (d)(1), (e), Oct. 15, 1982, 96 Stat. 1523; Pub. L. 101–73, title IX, §§ 905(f), 907(g), Aug. 9, 1989, 103 Stat. 461, 470.)

cite as: 12 USC 504