U.S Code last checked for updates: May 03, 2024
§ 505.
Civil money penalty
(1)
First tier
(2)
Second tier
Notwithstanding paragraph (1), 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—
(A)
(i)
commits any violation described in paragraph (1);
(ii)
recklessly engages in an unsafe or unsound practice in conducting the affairs of such member bank; or
(iii)
breaches any fiduciary duty;
(B)
which violation, practice, or breach—
(i)
is part of a pattern of misconduct;
(ii)
causes or is likely to cause more than a minimal loss to such member bank; or
(iii)
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.
(3)
Third tier
Notwithstanding paragraphs (1) and (2), 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—
(A)
knowingly—
(i)
commits any violation described in paragraph (1);
(ii)
engages in any unsafe or unsound practice in conducting the affairs of such member bank; or
(iii)
breaches any fiduciary duty; and
(B)
knowingly or recklessly causes a substantial loss to such member bank 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 paragraph (4) for each day during which such violation, practice, or breach continues.
(4)
Maximum amounts of penalties for any violation described in paragraph (3)
The maximum daily amount of any civil penalty which may be assessed pursuant to paragraph (3) for any violation, practice, or breach described in such paragraph is—
(A)
in the case of any person other than a member bank, an amount not to exceed $1,000,000; and
(B)
in the case of a member bank, an amount not to exceed the lesser of—
(i)
$1,000,000; or
(ii)
1 percent of the total assets of such member bank.
(5)
Assessment; etc.
(6)
Hearing
(7)
Disbursement
(8)
“Violate” defined
(9)
Regulations
(Dec. 23, 1913, ch. 6, § 19(l), formerly § 19(j), as added Pub. L. 95–630, title I, § 102, Nov. 10, 1978, 92 Stat. 3642; renumbered § 19(l), Pub. L. 96–221, title I, § 105(f), Mar. 31, 1980, 94 Stat. 140; amended Pub. L. 97–320, title IV, § 424(a), (d)(2), (e), Oct. 15, 1982, 96 Stat. 1522, 1523; Pub. L. 101–73, title IX, § 907(h), Aug. 9, 1989, 103 Stat. 472.)
cite as: 12 USC 505