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8000 - Miscellaneous Statutes and Regulations


(C)  Upon the issuance of such a certificate by the Comptroller, such Federal savings association (i) shall no longer be subject to the provisions of this section or the regulations of the Comptroller made pursuant thereto, (ii) shall be entitled to have returned to it any securities which it may have deposited with State authorities, and (iii) shall not exercise thereafter any of the powers granted by this section without first applying for and obtaining a new permit to exercise such power pursuant to the provisions of this section.

(D)  The Comptroller may prescribe regulations necessary to enforce compliance with the provisions of this subsection.

(10)  REVOCATION.--(A) In addition to the authority conferred by other law, if, in the opinion of the Comptroller, a Federal savings association is unlawfully or unsoundly exercising, or has unlawfully or unsoundly exercised, or has failed for a period of 5 consecutive years to exercise, the powers granted by this subsection or otherwise fails or has failed to comply with the requirements of this subsection, the Comptroller may issue and serve upon the association a notice of intent to revoke the authority of the association to exercise the powers granted by this subsection. The notice shall contain a statement of the facts constituting the alleged unlawful or unsound exercise of powers, or failure to exercise powers, or failure to comply, and shall fix a time and place at which a hearing will be held to determine whether an order revoking authority to exercise such powers should issue against the association.

(B)  Such hearing shall be conducted in accordance with the provisions of subsection (d)(1)(B), and subject to judicial review as therein provided, and shall be fixed for a date not earlier than 30 days and not later than 60 days after service of such notice unless the Comptroller sets an earlier or later date at the request of any Federal savings association so served.

(C)  Unless the Federal savings association so served shall appear at the hearing by a duly authorized representative, it shall be deemed to have consented to the issuance of the revocation order. In the event of such consent, or if upon the record made at any such hearing, the Comptroller shall find that any allegation specified in the notice of charges has been established, the Director may issue and serve upon the association an order prohibiting it from accepting any new or additional trust accounts and revoking authority to exercise any and all powers granted by this subsection, except that such order shall permit the association to continue to service all previously accepted trust accounts pending their expeditious divestiture or termination.

(D)  A revocation order shall become effective not earlier than the expiration of 30 days after service of such order upon the association so served (except in the case of a revocation order issued upon consent, which shall become effective at the time specified therein), and shall remain effective and enforceable, except to such extent as it is stayed, modified, terminated, or set aside by action of the Comptroller or a reviewing court.

(o)  CONVERSION OF STATE SAVINGS BANKS.--(1) Subject to the provisions of this subsection and under regulations of the Comptroller, the Comptroller may authorize the conversion of a State-chartered savings bank into a Federal savings bank, if such conversion is not in contravention of State law, and provide for the organization, incorporation, operation, examination, and regulation of such institution.

(2)(A)  Any Federal savings bank chartered pursuant to this subsection shall continue to be insured by the Deposit Insurance Fund.

(B)  The Comptroller shall notify the Corporation of any application under this Act for conversion to a Federal charter by an institution insured by the Corporation, shall consult with the Corporation before disposing of the application, and shall notify the Corporation of the determination of the Comptroller with respect to such application.

(C)  Notwithstanding any other provision of law, if the Corporation determines that conversion into a Federal stock savings bank or the chartering of a Federal stock savings bank is necessary to prevent the default of a savings bank it insures or to reopen a savings bank in default that it insured, or if the Corporation determines, with the concurrence of the Comptroller, that severe financial conditions exist that threaten the stability of a savings bank insured by the Corporation and that such a conversion or charter is likely to improve the financial condition of such savings bank, the Corporation shall provide the Comptroller with a certificate of such determination, the reasons therefor in conformance with the requirements of this Act, and the bank shall be converted or chartered by the Comptroller, pursuant to the regulations thereof, from the time the Corporation issues the certificate.

(D)  A bank may be converted under subparagraph (C) only if the board of trustees of the bank--

(i)  has specified in writing that the bank is in danger of closing or is closed, or that severe financial conditions exist that threaten the stability of the bank and a conversion is likely to improve the financial condition of the bank; and

(ii)  has requested in writing that the Corporation use the authority of subparagraph (C).

(E)(i)  Before making a determination under subparagraph (D), the Corporation shall consult that State bank supervisor of the State in which the bank in danger of closing is chartered. The State bank supervisor shall be given a reasonable opportunity, and in no event less than 48 hours, to object to the use of the provisions of subparagraph (D).

(ii)  If the State supervisor objects during such period, the Corporation may use the authority of subparagraph (D) only by an affirmative vote of three-fourths of the Board of Directors. The Board of Directors shall provide the State supervisor, as soon as practicable, with a written certification of its determination.

(3)  A Federal savings bank chartered under this subsection shall have the same authority with respect to investments, operations, and activities, and shall be subject to the same restrictions, including those applicable to branching and discrimination, as would apply to it if it were chartered as a Federal savings bank under any other provision of this Act.

(p)  CONVERSIONS.--(1) Nothwithstanding any other provision of law, and consistent with the purposes of this Act, the Comptroller may authorize (or in the case of a Federal savings association, require) the conversion of any mutual savings association or Federal mutual savings bank that is insured by the Corporation into a Federal stock savings association or Federal stock savings bank, or charter a Federal stock savings association of Federal stock savings bank to acquire the assets of, or merge with such a mutual institution under the regulations of the Comptroller.

(2)  Authorizations under this subsection may be made only--

(A)  if the Comptroller has determined that severe financial conditions exist which threaten the stability of an association and that such authorization is likely to improve the financial condition of the association.

(B)  when the Corporation has contracted to provide assistance to such association under section 13 of the Federal Deposit Insurance Act, or

(C)  to assist an institution in receivership.

(3)  A Federal savings bank chartered under this subsection shall have the same authority with respect to investments, operations and activities, and shall be subject to the same restrictions, including those applicable to branching and discrimination, as would apply to it if it were chartered as a Federal savings bank under any other provision of this Act, and may engage in any investment, activity, or operation that the institution it acquired was engaged in if that institution was a Federal savings bank, or would have been authorized to engage in had that institution converted to a Federal charter.

(q)  TYING ARRANGEMENTS.--(1) A savings association may not in any manner extend credit, lease, or sell property of any kind, or furnish any service, or fix or vary the consideration for any of the foregoing, on the condition or requirement--

(A)  that the customer shall obtain additional credit, property, or service from such savings association, or from any service corporation or affiliate of such association, other than a loan, discount, deposit, or trust service;

(B)  that the customer provide additional credit, property, or service to such association, or to any service corporation or affiliate of such association, other than those related to and usually provided in connection with a similar loan, discount, deposit, or trust service; and

(C)  that the customer shall not obtain some other credit, property, or service from a competitor or such association, or from a competitor of any service corporation of affiliate of such association, other than a condition or requirement that such association shall reasonably impose in connection with credit transactions to assure the soundness of credit.

(2)(A)  Any person may sue for and have injunctive relief, in any court of the United States having jurisdiction over the parties, against threatened loss or damage by reason of a violation of paragraph (1), under the same conditions and principles as injunctive relief against threatened conduct that will cause loss or damage is granted by courts of equity and under the rules governing such proceedings.

(B)  Upon the execution of proper bond against damages for an injunction improvidently granted and a showing that the danger of irreparable loss or damage is immediate, a preliminary injunction may issue.

(3)  Any person injured by a violation of paragraph (1) may bring an action in any district court of the United States in which the defendant resides or is found or has an agent, without regard to the amount in controversy, or in any other court of competent jurisdiction, and shall be entitled to recover three times the amount of the damages sustained, and the cost of suit, including a reasonable attorney's fee. Any such action shall be brought within 4 years from the date of the occurrence of the violation.

(4)  Nothing contained in this subsection affects in any manner the right of the United States or any other party to bring an action under any other law of the United States or of any State, including any right which may exist in addition to specific statutory authority, challenging the legality of any act or practice which may be proscribed by this subsection. No regulation or order issued by the Board under this subsection shall in any manner constitute a defense to such action.

(5)  For purposes of this subsection, the term "loan" includes obligations and extensions or advances of credit.

(6)  EXCEPTIONS.--The Board may, by regulation or order, permit such exceptions to the prohibitions of this subsection as the Board in consultation with the Comptroller and the Corporation considers will not be contrary to the purposes of this subsection and which conform to exceptions granted by the Board pursuant to section 106(b) of the Bank Holding Company Act Amendments of 1970.

(r)  OUT-OF-STATE BRANCHES--(1) No Federal savings association may establish, retain, or operate a branch outside the State in which the Federal savings association has its home office, unless the association qualifies as a domestic building and loan association under section 7701(a)(19) of the Internal Revenue Code of 1986 or meets the asset composition test imposed by subparagraph (C) of that section on institutions seeking so to qualify, or qualifies as a qualified thrift lender, as determined under section 10(m) of this Act. No out-of-State branch so established shall be retained or operated unless the total assets of the Federal savings association attributable to all branches of the Federal savings association in that State would qualify the branches as a whole, were they otherwise eligible, for treatment as a domestic building and loan association under section 7701(a)(19), or as a qualified thrift lender, as determined under section 10(m) of this Act, as applicable.

(2)  The limitations of paragraph (1) shall not apply if--

(A)  the branch results from a transaction authorized under section 13(k) of the Federal Deposit Insurance Act;

(B)  the branch was authorized for the Federal savings association prior to October 15, 1982;

(C)  the law of the State where the branch is located, or is to be located, would permit establishment of the branch if the association was a savings association or savings bank chartered by the State in which its home office is located; or

(D)  the branch was operated lawfully as a branch under State law prior to the association's conversion to a Federal charter.

(3)  The Comptroller of the Currency, for good cause shown, may allow Federal savings associations up to 2 years to comply with the requirements of this subsection.

(s)  MINIMUM CAPITAL REQUIREMENTS.--

(1)  IN GENERAL.--Consistent with the purposes of section 908 of the International Lending Supervision Act of 1983 and the capital requirements established pursuant to such section by the appropriate Federal banking agencies (as defined in section 903(1) of such Act), the Comptroller of the Currency shall require all savings associations to achieve and maintain adequate capital by--

(A)  establishing minimum levels of capital for savings associations; and

(B)  using such other methods as the Director determines to be appropriate.

(2)  MINIMUM CAPITAL LEVELS MAY BE DETERMINED BY COMPTROLLER OF THE CURRENCY CASE-BY-CASE.--The Comptroller of the Currency may, consistent with subsection (t), establish the minimum level of capital for a savings association at such amount or at such ratio of capital-to-assets as the Comptroller of the Currency determines to be necessary or appropriate for such association in light of the particular circumstances of the association.

(3)  UNSAFE OR UNSOUND PRACTICE.--In the discretion of the appropriate Federal banking agency, the appropriate Federal banking agency may treat the failure of any savings association to maintain capital at or above the minimum level required by the Director under this subsection or subsection (t) as an unsafe or unsound practice.

(4)  DIRECTIVE TO INCREASE CAPITAL.—

(A)  PLAN MAY BE REQUIRED.--In addition to any other action authorized by law, including paragraph (3), the appropriate Federal banking agency may issue a directive requiring any savings association which fails to maintain capital at or above the minimum level required by the appropriate Federal banking agency to submit and adhere to a plan for increasing capital which is acceptable to the appropriate Federal banking agency.

(B)  ENFORCEMENT OF PLAN.--Any directive issued and plan approved under subparagraph (A) shall be enforceable under section 8 of the Federal Deposit Insurance Act to the same extent and in the same manner as an outstanding order which was issued under section 8 of the Federal Deposit Insurance Act and has become final.

(5)  PLAN TAKEN INTO ACCOUNT IN OTHER PROCEEDINGS.--The appropriate Federal banking agency may--

(A)  consider a savings association's progress in adhering to any plan required under paragraph (4) whenever such association of any affiliate of such association (including any company which controls such association) seeks the approval of the appropriate Federal banking agency for any proposal which would have the effect of diverting earnings, diminishing capital, or otherwise impeding such association's progress in meeting the minimum level of capital required by the appropriate Federal banking agency; and

(B)  disapprove any proposal referred to in subparagraph (A) if the appropriate Federal banking agency determines that the proposal would adversely affect the ability of the association to comply with such plan.

(t)  CAPITAL STANDARDS --

(1)  IN GENERAL.--

(A)  REQUIREMENT FOR STANDARDS TO BE PRESCRIBED.-- The Director shall, by regulation, prescribe and maintain uniformly applicable capital standards for savings associations. Those standards shall include--

(i)  a leverage limit;

(ii)  a tangible capital requirement; and

(iii)  a risk-based capital requirement.

(B)  COMPLIANCE.--A savings association is not in compliance with capital standards for purposes of this subsection unless it complies with all capital standards prescribed under this paragraph.

(C)  STRINGENCY.--The standards prescribed under this paragraph shall be no less stringent than the capital standards applicable to national banks.

(2)  CONTENT OF STANDARDS.--

(A)  LEVERAGE LIMIT.--The leverage limit prescribed under paragraph (1) shall require a savings association to maintain core capital in an amount not less than 3 percent of the savings association's total assets.

(B)  TANGIBLE CAPITAL REQUIREMENT.--The tangible capital requirement prescribed under paragraph (1) shall require a savings association to maintain tangible capital in an amount not less than 1.5 percent of the savings association's total assets.

(C)  RISK-BASED CAPITAL REQUIREMENT.--Notwithstanding paragraph (1)(C), the risk-based capital requirement prescribed under paragraph (1) may deviate from the risk-based capital standards applicable to national banks to reflect interest-rate risk or other risks, but such deviations shall not, in the aggregate, result in materially lower levels of capital being required of savings associations under the risk-based capital requirement than would be required under the risk-based capital standards applicable to national banks.

(D)  QUARTERLY VALUATION.--The fair market value of purchased mortgage servicing rights shall be determined not less often than quarterly.

(3)  REPEALED.

(4)  REPEALED.

(5)  SEPARATE CAPITALIZATION REQUIRED FOR CERTAIN SUBSIDIARIES.--

(A)  IN GENERAL.--In determining compliance with capital standards prescribed under paragraph (1), all of a savings association's investments in and extensions of credit to any subsidiary engaged in activities not permissible for a national bank shall be deducted from the savings association's capital.

(B)  EXCEPTION FOR AGENCY ACTIVITIES.--Subparagraph (A) shall not apply with respect to a subsidiary engaged, solely as agent for its customers, in activities not permissible for a national bank unless the appropriate Federal banking agency, in the sole discretion of the appropriate Federal banking agency determines that, in the interests of safety and soundness, this subparagraph should cease to apply to that subsidiary.

(C)  OTHER EXCEPTIONS.--Subparagraph (A) shall not apply with respect to any of the following:

(i)  MORTGAGE BANKING SUBSIDIARIES.--A savings association's investments in and extensions of credit to a subsidiary engaged solely in mortgage-banking activities.

(ii)  SUBSIDIARY INSURED DEPOSITORY INSTITUTIONS.--A savings association's investments in and extensions of credit to a subsidiary--

(I)  that is itself an insured depository institution or a company the sole investment of which is an insured depository institution, and

(II)  that was acquired by the parent insured depository institution prior to May 1, 1989.

(iii)  CERTAIN FEDERAL SAVINGS BANKS.--Any Federal savings association existing as a Federal savings association on the date of enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989--

(I)  that was chartered prior to October 15, 1982, as a savings bank or a cooperative bank under State law; or

(II)  that acquired its principal assets from an association that was chartered prior to October 15, 1982, as a savings bank or a cooperative bank under State law.

(E)  CONSOLIDATION OF SUBSIDIARIES NOT SEPARATELY CAPITALIZED.--In determining compliance with capital standards prescribed under paragraph (1), the assets and liabilities of each of a savings association's subsidiaries (other than any subsidiary described in subparagraph (C)(ii) shall be consolidated with the savings association's assets and liabilities, unless all of the savings association's investments in and extensions of credit to the subsidiary are deducted from the savings association's capital pursuant to subparagraph (A).

(6)  CONSEQUENCES OF FAILING TO COMPLY WITH CAPITAL STANDARDS.--

(A)  [RESERVED].

(B)  ON OR AFTER JANUARY 1, 1991.--On or after January 1, 1991, the appropriate Federal banking agency--

(i)  shall prohibit any asset growth by any savings association not in compliance with capital standards, except as provided in subparagraph (C); and

(ii)  shall require any savings association not in compliance with capital standards to comply with a capital directive issued by the appropriate Federal banking agency (which may include such restrictions, including restrictions on the payment of dividends, and on compensation, as the appropriate Federal banking agency determines to be appropriate).

(C)  LIMITED GROWTH EXCEPTION.--The appropriate Federal banking agency may permit any savings association that is subject to subparagraph (B) to increase its assets in an amount not exceeding the amount of net interest credited to the savings association's deposit liabilities if--

(i)  the savings association obtains the prior approval of the appropriate Federal banking agency;

(ii)  any increase in assets is accompanied by an increase in tangible capital in an amount not less than 6 percent of the increase in assets (or, in the discretion of the appropriate Federal banking agency if the leverage limit then applicable is less than 6 percent, in an amount equal to the increase in assets multiplied by the percentage amount of the leverage limit);

(iii)  any increase in assets is accompanied by an increase in capital not less in percentage amount than required under the risk-based capital standard then applicable;

(iv)  any increase in assets is invested in low-risk assets, such as first mortgage loans secured by 1- to 4-family residences and fully secured consumer loans; and

(v)  the savings association's ratio of core capital to total assets is not less than the ratio existing on January 1, 1991.

(D)  ADDITIONAL RESTRICTIONS IN CASE OF EXCESSIVE RISKS OR RATES.--The Director may restrict the asset growth of any savings association that the Director determines is taking excessive risks or paying excessive rates for deposits.

(E)  FAILURE TO COMPLY WITH PLAN, REGULATION, OR ORDER.--The appropriate Federal banking agency may treat as an unsafe and unsound practice any material failure by a savings association to comply with any plan, regulation, or order under this paragraph.

(F)  EFFECT ON OTHER REGULATORY AUTHORITY.--This paragraph does not limit any authority of the appropriate Federal banking agency under this Act or any other provision of law.

(7)  EXEMPTION FROM CERTAIN SANCTIONS.--

(A)  APPLICATION FOR EXEMPTION.--Any savings association not in compliance with the capital standards prescribed under paragraph (1) may not apply to the Director for an exemption from any applicable sanction or penalty for noncompliance which the appropriate Federal banking agency may impose under this Act.

(B)  EFFECT OF GRANT OF EXEMPTION.--If the appropriate Federal banking agency approves any savings association's application under subparagraph (A), the only sanction or penalty to be imposed by the appropriate Federal banking agency under this Act for the savings association's failure to comply withthe capital standards prescribed under paragraph (1) is the growth limitation contained in paragraph (6)(B) or paragraph (6)(C), whichever is applicable.

(C)  STANDARDS FOR APPROVAL OR DISAPPROVAL.--

(i)  APPROVAL.--The appropriate Federal banking agency may approve an application for an exemption if the appropriate Federal banking agency determines that--

(I)  such exemption would pose no significant risk to the Deposit Insurance Fund;

(II)  the savings association's management is competent;

(III)  the savings association is in substantial compliance with all applicable statutes, regulations, orders, and supervisory agreements and directives; and

(IV)  the savings association's management has not engaged in insider dealing, speculative practices, or any other activities that have jeopardized the association's safety and soundness or contributed to impairing the association's capital.

(ii)  DENIAL OR REVOCATION OF APPROVAL.--The appropriate Federal banking agency shall deny any application submitted under clause (i) and revoke any prior approval granted with respect to any such application if the appropriate Federal banking agency determines that the association's failure to meet any capital standards prescribed under paragraph (1) is accompanied by--

(I)  a pattern of consistent losses;

(II)  substantial dissipation of assets;

(III)  evidence of imprudent management or business behavior;

(IV)  a material violation of any Federal law, any law of any State to which such association is subject, or any applicable regulation; or

(V)  any other unsafe or unsound condition or activity, other than the failure to meet such capital standards.

(D)  SUBMISSION OF PLAN REQUIRED.--Any application submitted under subparagraph (A) shall be accompanied by a plan which--

(i)  meets the requirements of paragraph (6)(A)(ii); and

(ii)  is acceptable to the appropriate Federal banking agency.

(E)  FAILURE TO COMPLY WITH PLAN.--The appropriate Federal banking agency shall treat as an unsafe and unsound practice any material failure by any savings association which has been granted an exemption under this paragraph to comply with the provisions of any plan submitted by such association under subparagraph (D).

(F)  EXEMPTION NOT AVAILABLE WITH RESPECT TO UNSAFE OR UNSOUND PRACTICES.--This paragraph does not limit any authority of the appropriate Federal banking agency under any other provision of law, including section 8 of the Federal Deposit Insurance Act, to take any appropriate action with respect to any unsafe or unsound practice or condition of any savings association, other than the failure of such savings association to comply with the capital standards prescribed under paragraph (1).

(8)  [REPEALED].

(9)  DEFINITIONS.--For purposes of this subsection--

(A)  CORE CAPITAL.--Unless the Comptroller prescribes a more stringent definition, the term "core capital" means core capital as defined by the Comptroller of the Currency for national banks, less any unidentifiable intangible assets.

(B)  TANGIBLE CAPITAL.--The term "tangible capital" means core capital minus any intangible assets (as intangible assets are defined by the Comptroller of the Currency for national banks).

(C)  TOTAL ASSETS.--The term "total assets" means total assets (as total assets are defined by the Comptroller of the Currency for national banks) adjusted in the same manner as total assets would be adjusted in determining compliance with the leverage limit applicable to national banks if the savings association were a national bank.

(10)  USE OF COMPTROLLER'S DEFINITIONS.--

(A)  IN GENERAL.--The standards prescribed under paragraph (1) shall include all relevant substantive definitions established by the Comptroller of the Currency for national banks.

(B)  SPECIAL RULE.--If the Comptroller of the Currency has not made effective regulations defining core capital or establishing a risk-based capital standard, the appropriate Federal banking agency shall use the definition and standard contained in the Comptroller's most recently published final regulations.

(u)  LIMITS ON LOANS TO ONE BORROWER.--

(1)  IN GENERAL.--Section 5200 of the Revised Statutes shall apply to savings associations in the same manner and to the same extent as it applies to national banks.

(2)  SPECIAL RULES--

(A)  Notwithstanding paragraph (1), a savings association may make loans to one borrower under one of the following clauses:

(i)  For any purpose, not to exceed $500,000.

(ii)  To develop domestic residential housing units, not to exceed the lesser of $30,000,000 or 30 percent of the savings association's unimpaired capital and unimpaired surplus, if--

(I)  the savings association is and continues to be in compliance with the fully phased-in capital standards prescribed under subsection (t);

(II)  the appropriate Federal banking agency, by order, permits the savings association to avail itself of the higher limit provided by this clause;

(III)  loans made under this clause to all borrowers do not, in aggregate, exceed 150 percent of the savings association's unimpaired capital and unimpaired surplus; and

(IV)  such loans comply with all applicable loan-to-value requirements.

(B)  A savings association's loans to one borrower to finance the sale of real property acquired in satisfaction of debts previously contracted in good faith shall not exceed 50 percent of the savings association's unimpaired capital and unimpaired surplus.

(3)  AUTHORITY TO IMPOSE MORE STRINGENT RESTRICTIONS--The appropriate Federal banking agency may impose more stringent restrictions on a savings association's loans to one borrower if the appropriate Federal banking agency determines that such restrictions are necessary to protect the safety and soundness of the savings association.

(v)  REPORTS OF CONDITION.--

(1)  IN GENERAL.--Each association shall make reports of conditions to the appropriate Federal banking agency which shall be in a form prescribed by the appropriate Federal banking agency and shall contain--

(A)  information sufficient to allow the identification of potential interest rate and credit risk;

(B)  a description of any assistance being received by the association, including the type and monetary value of such assistance;

(C)  the identity of all subsidiaries and affiliates of the association;

(D)  the identity, value, type, and sector of investment of all equity investments of the associations and subsidiaries; and

(E)  other information that the appropriate Federal banking agency may prescribe.

(2)  PUBLIC DISCLOSURE.--

(A)  Reports required under paragraph (1) and all information contained therein shall be available to the public upon request, unless the appropriate Federal banking agency determines--

(i)  that a particular item or classification of information should not be made public in order to protect the safety or soundness of the institution concerned or institutions concerned, or the Deposit Insurance Fund; or

(ii)  that public disclosure would not otherwise be in the public interest.

(B)  Any determination made by the appropriate Federal banking agency under subparagraph (A) not to permit the public disclosure of information shall be made in writing, and if the appropriate Federal banking agency restricts any item of information for savings institutions generally, the appropriate Federal banking agency shall disclose the reason in detail in the Federal Register.

(C)  The determinations of the appropriate Federal banking agency under subparagraph (A) shall not be subject to judicial review.

(3)  ACCESS BY CERTAIN PARTIES.--

(A)  Notwithstanding paragraph (2), the persons described in subparagraph (B) shall not be denied access to any information contained in a report of condition, subject to reasonable requirements of confidentiality. Those requirements shall not prevent such information from being transmitted to the Comptroller General of the United States for analysis.

(B)  The following persons are described in this subparagraph for purposes of subparagraph (A):

(i)  the Chairman and ranking minority member of the Committee on Banking, Housing, and Urban Affairs of the Senate and their designees; and

(ii)  the Chairman and ranking minority member of the Committee on Banking, Finance and Urban Affairs of the House of Representatives and their designees.

(4)  FIRST TIER PENALTIES.--Any savings association which--

(A)  maintains procedures reasonably adapted to avoid any inadvertent and unintentional error and, as a result of such an error--

(i)  fails to submit or publish any report or information required by the appropriate Federal banking agency under paragraph (1) or (2), within the period of time specified by the appropriate Federal banking agency; or

(ii)  submits or publishes any false or misleading report or information; or

(B)  inadvertently transmits or publishes any report which is minimally late,

shall be subject to a penalty of not more than $2,000 for each day during which such failure continues or such false or misleading information is not corrected. The savings association shall have the burden of proving by a preponderance of the evidence that an error was inadvertent and unintentional and that a report was inadvertently transmitted or published late.

(5)  SECOND TIER PENALTIES.--Any savings association which--

(A)  fails to submit or publish any report or information required by the appropriate Federal banking agency under paragraph (1) or (2), within the period of time specified by the appropriate Federal banking agency; or

(B)  submits or publishes any false or misleading report or information,

in a manner not described in paragraph (4) shall be subject to a penalty of not more than $20,000 for each day during which such failure continues or such false or misleading information is not corrected.

(6)  THIRD TIER PENALTIES.--If any savings association knowingly or with reckless disregard for the accuracy of any information or report described in paragraph (5) submits or publishes any false or misleading report or information, the appropriate Federal banking agency may assess a penalty of not more than $1,000,000 or 1 percent of total assets, whichever is less, per day for each day during which such failure continues or such false or misleading information is not corrected.

(7)  ASSESSMENT.--Any penalty imposed under paragraph (4), (5), or (6) shall be assessed and collected by the appropriate Federal banking agency in the manner provided in subparagraphs (E), (F), (G), and (I) of section 8(i)(2) of the Federal Deposit Insurance Act (for penalties imposed under such section), and any such assessment (including the determination of the amount of the penalty) shall be subject to the provisions of such subsection.

(8)  HEARING.--Any savings association against which any penalty is assessed under this subsection shall be afforded a hearing if such savings association submits a request for such hearing within 20 days after the issuance of the notice of assessment. Section 8(h) of the Federal Deposit Insurance Act shall apply to any proceeding under this subsection.

(w)  FORFEITURE OF FRANCHISE FOR MONEY LAUNDERING OR CASH TRANSACTION REPORTING OFFENSES.--

(1)  IN GENERAL.--

(A)  CONVICTION OF TITLE 18 OFFENSE.--

(i)  DUTY TO NOTIFY.--If a Federal savings association has been convicted of any criminal offense under section 1956 or 1957 of Title 18, the Attorney General shall provide to the Comptroller a written notification of the conviction and shall include a certified copy of the order of conviction from the court rendering the decision.

(ii)  NOTICE OF TERMINATION; PRETERMINATION HEARING.--After receiving written notification from the Attorney General of such a conviction, the Comptroller shall issue to the savings association a notice of the intention of the Comptroller to terminate all rights, privileges, and franchises of the savings association and schedule a pretermination hearing.

(B)  CONVICTION OF TITLE 31 OFFENSES.--If a Federal savings association is convicted of any criminal offense under section 5322 or 5324 of Title 31, after receiving written notification from the Attorney General, the Comptroller may issue to the savings association a notice of the intention of the Comptroller to terminate all rights, privileges, and franchises of the savings association and schedule a pretermination hearing.

(C)  JUDICIAL REVIEW.--Subsection (d)(1)(B)(vii) of this section shall apply to any proceeding under this subsection.

(2)  FACTORS TO BE CONSIDERED.--In determining whether a franchise shall be forfeited under paragraph (1), the Comptroller shall take into account the following factors:

(A)  The extent to which directors or senior executive officers of the savings association knew of, were involved in, the commission of the money laundering offense of which the association was found guilty.

(B)  The extent to which the offense occurred despite the existence of policies and procedures within the savings association which were designed to prevent the occurrence of any such offense.

(C)  The extent to which the savings association has fully cooperated with law enforcement authorities with respect to the investigation of the money laundering offense of which the association was found guilty.

(D)  The extent to which the savings association has implemented additional internal controls (since the commission of the offense of which the savings association was found guilty) to prevent the occurrence of any other money laundering offense.

(E)  The extent to which the interest of the local community in having adequate deposit and credit services available would be threatened by the forfeiture of the franchise.

(3)  SUCCESSOR LIABILITY.--This subsection shall not apply to a successor to the interests of, or a person who acquires, a savings association that violated a provision of law described in paragraph (1), if the successor succeeds to the interests of the violator, or the acquisition is made, in good faith and not for purposes of evading this subsection or regulations prescribed under this subsection.

(4)  DEFINITION.--The term "senior executive officer" has the same meaning as in regulations prescribed under section 32f of the Federal Deposit Insurance Act.

(x)  HOME STATE CITIZENSHIP.--In determining whether a Federal court has diversity jurisdiction over a case in which a Federal savings association is a party, the Federal savings association shall be considered to be a citizen only of the State in which such savings association has its home office.

[Codified to 12 U.S.C. 1464]

[Source:  Section 301 of title III of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 282), effective August 9, 1989; as amended by sections 131 and 133(d) of title I, 441 of title IV, and 501(c) of title V of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2267, 2271, 2381 and 2391, respectively), effective December 19, 1991; the Act of July 1, 1992 (Pub. L. No. 102--310; 106 Stat. 276), effective July 1, 1992; section 953 of title IX, 1502(b) of title XV, 1603(d)(8), and 1606(1)--(3) of title XVI of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 3893, 4046, and 4088, respectively), effective October 28, 1992; sections 206(a) of title II, 322(b) of title III, and 411(c)(2)(D) of title IV of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2199, 2227, and 2253, respectively), effective September 23, 1994; by sections 2216(b) and 2303(a)--(d), and f of title II of the Act of September 30, 1996 (Pub. L. No. 104--208; 110 Stat. 3009--413 and 3009-424, respectively), effective September 30, 1996; section 3(a)(1) of the Act of March 20, 1998 (Pub. L. No. 105--164; 112 Stat. 33), effective March 20, 1998; section 603 of title VI and 739 of title VII of the Act of November 12, 1999 (Pub. L. No. 106-102; 113 Stat. 1450 and 1481 respectively), effective November 12, 1999; section 1201(b)(1) of title XII of the Act of December 27, 2000 (Pub. L. No. 106--569; 114 Stat. 3032, effective December 27, 2000; section 9(e)(1) of the Act of February 15, 2006 (Pub. L. No. 107--193; 119 Stat. 3617), effective date shall take effect on the date of the merger of the Bank Insurance Fund and the Savings Association Insurance Fund pursuant to the Federal Deposit Insurance Reform Act of 2005; sections 402, 403, 404 of title III and section 608(a) of title VI of the Act of October 13, 2006 (Pub. L. No. 109--351; 120 Stat. 1974 and 1983), effective October 13, 2006; section 369(5) of title III of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 1559--1563), effective July 21, 2010; sections 610(b), 612(c), and 627(a)(2) of title VI of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 1612, 1613, and 1640), effective July 21, 2010]


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