US (United States) Code. Title 12. Chapter 46: Government Sponsored Enterprises

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # Banks and banking

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-CITE-

12 USC CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

.

-HEAD-

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

-MISC1-

Sec.

4501. Congressional findings.

4502. Definitions.

4503. Protection of taxpayers against liability.

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

PART A - FINANCIAL SAFETY AND SOUNDNESS REGULATOR

4511. Establishment of Office of Federal Housing Enterprise

Oversight.

4512. Director.

(a) Appointment.

(b) Term.

(c) Vacancy.

(d) Service after end of term.

(e) Deputy Director.

4513. Duty and authority of Director.

(a) Duty.

(b) Authority exclusive of Secretary.

(c) Authority subject to approval of Secretary.

(d) Delegation of authority.

(e) Independence in providing information to

Congress.

4514. Authority to require reports by enterprises.

(a) Special reports and reports of financial

condition.

(b) Capital distributions.

4515. Personnel.

(a) Office personnel.

(b) Comparability of compensation with Federal

banking agencies.

(c) Personnel of other Federal agencies.

(d) Reimbursement of HUD.

(e) Outside experts and consultants.

(f) Equal opportunity report.

4516. Funding.

(a) Annual assessments.

(b) Allocation of annual assessment to enterprises.

(c) Deficiencies due to increased costs of

regulation.

(d) Surplus.

(e) Initial special assessment.

(f) Fund.

(g) Budget and financial reports.

4517. Examinations.

(a) Annual examination.

(b) Other examinations.

(c) Examiners.

(d) Law applicable to examiners.

(e) Technical experts.

(f) Oaths, evidence, and subpoena powers.

4518. Prohibition of excessive compensation.

(a) In general.

(b) Prohibition of setting compensation.

4519. Authority to provide for review of enterprises by rating

organization.

4520. Equal opportunity in solicitation of contracts.

(a) In general.

(b) Report.

4521. Annual reports by Director.

(a) General report.

(b) Report on enforcement actions.

4522. Public disclosure of final orders and agreements.

(a) In general.

(b) Hearings.

(c) Delay of public disclosure under exceptional

circumstances.

(d) Documents filed under seal in public enforcement

hearings.

(e) Retention of documents.

(f) Disclosures to Congress.

4523. Limitation on subsequent employment.

4524. Audits by GAO.

4525. Information, records, and meetings.

4526. Regulations and orders.

(a) Authority.

(b) Notice and comment.

(c) Congressional review.

PART B - AUTHORITY OF SECRETARY

SUBPART 1 - GENERAL AUTHORITY

4541. Regulatory authority.

4542. Prior approval authority for new programs.

(a) Authority.

(b) Standard for approval.

(c) Procedure for approval.

4543. Public access to mortgage information.

(a) In general.

(b) Access.

(c) Fees.

4544. Annual housing report.

(a) In general.

(b) Contents.

4545. Fair housing.

4546. Prohibition of public disclosure of proprietary information.

(a) In general.

(b) Protection of information on housing activities.

(c) Nondisclosure pending consideration.

4547. Authority to require reports by enterprises.

4548. Reports by Secretary.

(a) Annual report.

(b) Views on budget and financial plans of

enterprises.

SUBPART 2 - HOUSING GOALS

4561. Establishment.

(a) In general.

(b) Consideration of units in multifamily housing.

(c) Adjustment of housing goals.

4562. Low- and moderate-income housing goal.

(a) In general.

(b) Factors to be applied.

(c) Use of borrower and tenant income.

(d) Transition.

4563. Special affordable housing goal.

(a) Establishment.

(b) Full credit activities.

(c) Use of borrower and tenant income.

(d) Transition.

4564. Central cities, rural areas, and other underserved areas

housing goal.

(a) In general.

(b) Factors to be applied.

(c) Location of properties.

(d) Transition.

4565. Other requirements.

(a) In general.

(b) Affordable housing goals.

4566. Monitoring and enforcing compliance with housing goals.

(a) In general.

(b) Notice and determination of failure to meet

goals.

(c) Housing plans.

4567. Reports during transition.

SUBPART 3 - ENFORCEMENT OF HOUSING GOALS

4581. Cease-and-desist proceedings.

(a) Grounds for issuance.

(b) Procedure.

(c) Effective date.

(d) Transition period limitation.

4582. Hearings.

(a) Requirements.

(b) Issuance of order.

4583. Judicial review.

(a) Commencement.

(b) Filing of record.

(c) Jurisdiction.

(d) Review.

(e) Order to pay penalty.

(f) No automatic stay.

4584. Enforcement and jurisdiction.

(a) Enforcement.

(b) Limitation on jurisdiction.

4585. Civil money penalties.

(a) Authority.

(b) Amount of penalty.

(c) Procedures.

(d) Action to collect penalty.

(e) Settlement by Secretary.

(f) Transition period limitation.

(g) Deposit of penalties.

4586. Public disclosure of final orders and agreements.

(a) In general.

(b) Hearings.

(c) Delay of public disclosure under exceptional

circumstances.

(d) Documents filed under seal in public enforcement

hearings.

(e) Retention of documents.

(f) Disclosures to Congress.

4587. Notice of service.

4588. Subpoena authority.

(a) In general.

(b) Witnesses and documents.

(c) Enforcement.

(d) Fees and expenses.

4589. Regulations.

PART C - MISCELLANEOUS PROVISIONS

4601. Review of underwriting guidelines.

(a) Study.

(b) Report.

4602. Studies of effects of privatization of FNMA and FHLMC.

(a) In general.

(b) Requirements.

(c) Information.

(d) Views of FNMA and FHLMC.

4603. Transition.

SUBCHAPTER II - REQUIRED CAPITAL LEVELS FOR ENTERPRISES AND SPECIAL

ENFORCEMENT POWERS

4611. Risk-based capital levels.

(a) Risk-based capital test.

(b) Considerations.

(c) Risk-based capital level.

(d) Definitions.

(e) Regulations.

(f) Availability of model.

4612. Minimum capital levels.

(a) In general.

(b) Transition.

4613. Critical capital levels.

4614. Capital classifications.

(a) In general.

(b) Discretionary classification.

(c) Quarterly determination.

(d) Implementation.

4615. Supervisory actions applicable to undercapitalized

enterprises.

(a) Mandatory actions.

(b) Discretionary reclassification from

undercapitalized to significantly

undercapitalized.

(c) Effective date.

4616. Supervisory actions applicable to significantly

undercapitalized enterprises.

(a) Mandatory supervisory actions.

(b) Discretionary supervisory actions.

(c) Effective date.

4617. Appointment of conservators for critically undercapitalized

enterprises.

(a) Appointment.

(b) Authority.

(c) Approval of activities.

(d) Effective date.

4618. Notice of classification and enforcement action.

(a) Notice.

(b) Applicability.

(c) Response period.

(d) Consideration of information and determination.

(e) Effective date of actions.

4619. Appointment of conservators.

(a) Appointment.

(b) Judicial review.

(c) Replacement.

(d) Examinations.

(e) Termination.

4620. Powers of conservators.

(a) General powers.

(b) Additional power.

(c) Limitations by Director.

(d) Enforcement of contracts.

(e) Stays.

(f) Payment of creditors.

(g) Compensation of conservator and employees.

(h) Expenses.

(i) Conflicts of interest and financial disclosure.

4621. Liability protection for conservators.

(a) Federal agencies and employees.

(b) Other conservators.

(c) Indemnification.

4622. Capital restoration plans.

(a) Contents.

(b) Deadlines for submission.

(c) Approval.

(d) Resubmission.

4623. Judicial review of Director action.

(a) Jurisdiction.

(b) Scope of review.

(c) Unavailability of stay.

(d) Limitation on jurisdiction.

SUBCHAPTER III - ENFORCEMENT PROVISIONS

4631. Cease-and-desist proceedings.

(a) Grounds for issuance against adequately

capitalized enterprises.

(b) Grounds for issuance against undercapitalized,

significantly undercapitalized, and critically

undercapitalized enterprises.

(c) Procedure.

(d) Affirmative action to correct conditions

resulting from violations or activities.

(e) Authority to limit activities.

(f) Effective date.

4632. Temporary cease-and-desist orders.

(a) Grounds for issuance and scope.

(b) Effective date.

(c) Incomplete or inaccurate records.

(d) Judicial review.

(e) Enforcement by Attorney General.

4633. Hearings.

(a) Requirements.

(b) Issuance of order.

4634. Judicial review.

(a) Commencement.

(b) Filing of record.

(c) Jurisdiction.

(d) Review.

(e) Order to pay penalty.

(f) No automatic stay.

4635. Enforcement and jurisdiction.

(a) Enforcement.

(b) Limitation on jurisdiction.

4636. Civil money penalties.

(a) In general.

(b) Amount of penalty.

(c) Procedures.

(d) Action to collect penalty.

(e) Settlement by Director.

(f) Availability of other remedies.

(g) Prohibition of reimbursement or indemnification.

(h) Deposit of penalties.

(i) Applicability.

4637. Notice after separation from service.

4638. Private rights of action.

4639. Public disclosure of final orders and agreements.

(a) In general.

(b) Hearings.

(c) Delay of public disclosure under exceptional

circumstances.

(d) Documents filed under seal in public enforcement

hearings.

(e) Retention of documents.

(f) Disclosures to Congress.

4640. Notice of service.

4641. Subpoena authority.

(a) In general.

(b) Witnesses and documents.

(c) Enforcement.

(d) Fees and expenses.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 1422b, 1426 of this

title.

-CITE-

12 USC Sec. 4501 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

-HEAD-

Sec. 4501. Congressional findings

-STATUTE-

The Congress finds that -

(1) the Federal National Mortgage Association and the Federal

Home Loan Mortgage Corporation (referred to in this section

collectively as the ''enterprises''), and the Federal Home Loan

Banks (referred to in this section as the ''Banks''), have

important public missions that are reflected in the statutes and

charter Acts establishing the Banks and the enterprises;

(2) because the continued ability of the Federal National

Mortgage Association and the Federal Home Loan Mortgage

Corporation to accomplish their public missions is important to

providing housing in the United States and the health of the

Nation's economy, more effective Federal regulation is needed to

reduce the risk of failure of the enterprises;

(3) considering the current operating procedures of the Federal

National Mortgage Association, the Federal Home Loan Mortgage

Corporation, and the Federal Home Loan Banks, the enterprises and

the Banks currently pose low financial risk of insolvency;

(4) neither the enterprises nor the Banks, nor any securities

or obligations issued by the enterprises or the Banks, are backed

by the full faith and credit of the United States;

(5) an entity regulating the Federal National Mortgage

Association and the Federal Home Loan Mortgage Corporation should

have sufficient autonomy from the enterprises and special

interest groups;

(6) an entity regulating such enterprises should have the

authority to establish capital standards, require financial

disclosure, prescribe adequate standards for books and records

and other internal controls, conduct examinations when necessary,

and enforce compliance with the standards and rules that it

establishes;

(7) the Federal National Mortgage Association and the Federal

Home Loan Mortgage Corporation have an affirmative obligation to

facilitate the financing of affordable housing for low- and

moderate-income families in a manner consistent with their

overall public purposes, while maintaining a strong financial

condition and a reasonable economic return; and

(8) the Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.)

should be amended to emphasize that providing for financial

safety and soundness of the Federal Home Loan Banks is the

primary mission of the Federal Housing Finance Board.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1302, Oct. 28, 1992, 106 Stat.

3941.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Home Loan Bank Act, referred to in par. (8), is act

July 22, 1932, ch. 522, 47 Stat. 725, as amended, which is

classified generally to chapter 11 (Sec. 1421 et seq.) of this

title. For complete classification of this Act to the Code, see

section 1421 of this title and Tables.

-MISC2-

SHORT TITLE

Section 1301 of title XIII of Pub. L. 102-550 provided that:

''This title (enacting this chapter, amending sections 1422a, 1430,

1430b, 1451 to 1456, 1716 to 1719, 1723, 1723a, and 1723c of this

title, sections 3132 and 5313 of Title 5, Government Organization

and Employees, section 1905 of Title 18, Crimes and Criminal

Procedure, and section 3534 of Title 42, The Public Health and

Welfare, enacting provisions set out as notes under sections 1451,

1452, 1723, and 4562 of this title, and amending provisions set out

as a note under section 1451 of this title) may be cited as the

'Federal Housing Enterprises Financial Safety and Soundness Act of

1992'.''

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12 USC Sec. 4502 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

-HEAD-

Sec. 4502. Definitions

-STATUTE-

For purposes of this chapter:

(1) Affiliate

Except as provided by the Director, the term ''affiliate''

means any entity that controls, is controlled by, or is under

common control with, an enterprise.

(2) Capital distribution

(A) In general

The term ''capital distribution'' means -

(i) any dividend or other distribution in cash or in kind

made with respect to any shares of, or other ownership

interest in, an enterprise, except a dividend consisting only

of shares of the enterprise;

(ii) any payment made by an enterprise to repurchase,

redeem, retire, or otherwise acquire any of its shares,

including any extension of credit made to finance an

acquisition by the enterprise of such shares; and

(iii) any transaction that the Director determines by

regulation to be, in substance, the distribution of capital.

(B) Exception

Any payment made by an enterprise to repurchase its shares

for the purpose of fulfilling an obligation of the enterprise

under an employee stock ownership plan that is qualified under

section 401 of title 26 or any substantially equivalent plan,

as determined by the Director, shall not be considered a

capital distribution.

(3) Compensation

The term ''compensation'' means any payment of money or the

provision of any other thing of current or potential value in

connection with employment.

(4) Core capital

The term ''core capital'' means, with respect to an enterprise,

the sum of the following (as determined in accordance with

generally accepted accounting principles):

(A) The par or stated value of outstanding common stock.

(B) The par or stated value of outstanding perpetual,

noncumulative preferred stock.

(C) Paid-in capital.

(D) Retained earnings.

The core capital of an enterprise shall not include any amounts

that the enterprise could be required to pay, at the option of

investors, to retire capital instruments.

(5) Director

The term ''Director'' means the Director of the Office of

Federal Housing Enterprise Oversight of the Department of Housing

and Urban Development.

(6) Enterprise

The term ''enterprise'' means -

(A) the Federal National Mortgage Association and any

affiliate thereof; and

(B) the Federal Home Loan Mortgage Corporation and any

affiliate thereof.

(7) Executive officer

The term ''executive officer'' means, with respect to an

enterprise, the chairman of the board of directors, chief

executive officer, chief financial officer, president, vice

chairman, any executive vice president, and any senior vice

president in charge of a principal business unit, division, or

function.

(8) Low-income

The term ''low-income'' means -

(A) in the case of owner-occupied units, income not in excess

of 80 percent of area median income; and

(B) in the case of rental units, income not in excess of 80

percent of area median income, with adjustments for smaller and

larger families, as determined by the Secretary.

(9) Median income

The term ''median income'' means, with respect to an area, the

unadjusted median family income for the area, as determined and

published annually by the Secretary.

(10) Moderate-income

The term ''moderate-income'' means -

(A) in the case of owner-occupied units, income not in excess

of area median income; and

(B) in the case of rental units, income not in excess of area

median income, with adjustments for smaller and larger

families, as determined by the Secretary.

(11) Mortgage purchases

The term ''mortgage purchases'' includes mortgages purchased

for portfolio or securitization.

(12) Multifamily housing

The term ''multifamily housing'' means a residence consisting

of more than 4 dwelling units.

(13) New program

The term ''new program'' means any program for the purchasing,

servicing, selling, lending on the security of, or otherwise

dealing in, conventional mortgages that -

(A) is significantly different from programs that have been

approved under this Act or that were approved or engaged in by

an enterprise before October 28, 1992; or

(B) represents an expansion, in terms of the dollar volume or

number of mortgages or securities involved, of programs above

limits expressly contained in any prior approval.

(14) Office

The term ''Office'' means the Office of Federal Housing

Enterprise Oversight of the Department of Housing and Urban

Development.

(15) Secretary

The term ''Secretary'' means the Secretary of Housing and Urban

Development.

(16) Single family housing

The term ''single family housing'' means a residence consisting

of 1 to 4 dwelling units.

(17) State

The term ''State'' means the States of the United States, the

District of Columbia, the Commonwealth of Puerto Rico, the

Commonwealth of the Northern Mariana Islands, Guam, the Virgin

Islands, American Samoa, the Trust Territory of the Pacific

Islands, and any other territory or possession of the United

States.

(18) Total capital

The term ''total capital'' means, with respect to an

enterprise, the sum of the following:

(A) The core capital of the enterprise; (FOOTNOTE 1)

(FOOTNOTE 1) So in original. The semicolon probably should be a

period.

(B) A general allowance for foreclosure losses, which -

(i) shall include an allowance for portfolio mortgage

losses, an allowance for nonreimbursable foreclosure costs on

government claims, and an allowance for liabilities reflected

on the balance sheet for the enterprise for estimated

foreclosure losses on mortgage-backed securities; and

(ii) shall not include any reserves of the enterprise made

or held against specific assets.

(C) Any other amounts from sources of funds available to

absorb losses incurred by the enterprise, that the Director by

regulation determines are appropriate to include in determining

total capital.

(19) Very low-income

The term ''very low-income'' means -

(A) in the case of owner-occupied units, income not in excess

of 60 percent of area median income; and

(B) in the case of rental units, income not in excess of 60

percent of area median income, with adjustments for smaller and

larger families, as determined by the Secretary.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1303, Oct. 28, 1992, 106 Stat.

3942.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in text, 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

complete classification of title XIII to the Code, see Short Title

note set out under section 4501 of this title and Tables.

This Act, referred to in par. (13)(A), 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

section 5301 of Title 42, The Public Health and Welfare, and

Tables.

-TRANS-

TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS

For termination of Trust Territory of the Pacific Islands, see

note set out preceding section 1681 of Title 48, Territories and

Insular Possessions.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1452, 1454, 1717, 1718,

1723a of this title.

-CITE-

12 USC Sec. 4503 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

-HEAD-

Sec. 4503. Protection of taxpayers against liability

-STATUTE-

This chapter may not be construed as obligating the Federal

Government, either directly or indirectly, to provide any funds to

the Federal Home Loan Mortgage Corporation, the Federal National

Mortgage Association, or the Federal Home Loan Banks, or to honor,

reimburse, or otherwise guarantee any obligation or liability of

the Federal Home Loan Mortgage Corporation, the Federal National

Mortgage Association, or the Federal Home Loan Banks. This chapter

may not be construed as implying that any such enterprise or Bank,

or any obligations or securities of such an enterprise or Bank, are

backed by the full faith and credit of the United States.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1304, Oct. 28, 1992, 106 Stat.

3944.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in text, was in the original ''This

title and the amendments made by this title'', meaning title XIII

of Pub. L. 102-550, Oct. 28, 1992, 106 Stat. 3941, which is

classified principally to this chapter. For complete

classification of title XIII to the Code, see Short Title note set

out under section 4501 of this title and Tables.

-CITE-

12 USC SUBCHAPTER I - SUPERVISION AND REGULATION OF

ENTERPRISES 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

.

-HEAD-

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

-CITE-

12 USC Part A - Financial Safety and Soundness Regulator 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part A - Financial Safety and Soundness Regulator

.

-HEAD-

Part A - Financial Safety and Soundness Regulator

-CITE-

12 USC Sec. 4511 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part A - Financial Safety and Soundness Regulator

-HEAD-

Sec. 4511. Establishment of Office of Federal Housing Enterprise

Oversight

-STATUTE-

There is hereby established an office within the Department of

Housing and Urban Development, which shall be known as the Office

of Federal Housing Enterprise Oversight.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1311, Oct. 28, 1992, 106 Stat.

3944.)

-CITE-

12 USC Sec. 4512 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part A - Financial Safety and Soundness Regulator

-HEAD-

Sec. 4512. Director

-STATUTE-

(a) Appointment

The Office shall be under the management of a Director, who shall

be appointed by the President, by and with the advice and consent

of the Senate, from among individuals who are citizens of the

United States, have a demonstrated understanding of financial

management or oversight, and have a demonstrated understanding of

mortgage security markets and housing finance. An individual may

not be appointed as Director if the individual has served as an

executive officer or director of an enterprise at any time during

the 3-year period ending upon the nomination of such individual for

appointment as Director.

(b) Term

The Director shall be appointed for a term of 5 years.

(c) Vacancy

A vacancy in the position of Director shall be filled in the

manner in which the original appointment was made under subsection

(a) of this section.

(d) Service after end of term

A Director may serve after the expiration of the term for which

the Director was appointed until a successor Director has been

appointed.

(e) Deputy Director

(1) In general

The Office shall have a Deputy Director who shall be appointed

by the Director from among individuals who are citizens of the

United States, have a demonstrated understanding of financial

management or oversight, and have a demonstrated understanding of

mortgage security markets and housing finance. An individual may

not be appointed as Deputy Director if the individual has served

as an executive officer or director of an enterprise at any time

during the 3-year period ending upon the appointment of such

individual as Deputy Director.

(2) Functions

The Deputy Director shall have such functions, powers, and

duties as the Director shall prescribe. In the event of the

death, resignation, sickness, or absence of the Director, the

Deputy Director shall serve as acting Director until the return

of the Director or the appointment of a successor pursuant to

subsection (c) of this section.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1312, Oct. 28, 1992, 106 Stat.

3945.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4515, 4526, 4603 of this

title.

-CITE-

12 USC Sec. 4513 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part A - Financial Safety and Soundness Regulator

-HEAD-

Sec. 4513. Duty and authority of Director

-STATUTE-

(a) Duty

The duty of the Director shall be to ensure that the enterprises

are adequately capitalized and operating safely, in accordance with

this chapter.

(b) Authority exclusive of Secretary

The Director is authorized, without the review or approval of the

Secretary, to make such determinations, take such actions, and

perform such functions as the Director determines necessary

regarding -

(1) the issuance of regulations to carry out this part,

subchapter II of this chapter, and subchapter III of this chapter

(including the establishment of capital standards pursuant to

subchapter II of this chapter);

(2) examinations of the enterprises under section 4517 of this

title;

(3) determining the capital levels of the enterprises and

classification of the enterprises within capital classifications

established under subchapter II of this chapter;

(4) decisions to appoint conservators for the enterprises;

(5) administrative and enforcement actions under subchapter II

of this chapter, actions taken under subchapter III of this

chapter with respect to enforcement of subchapter II of this

chapter, and other matters relating to safety and soundness;

(6) approval of payments of capital distributions by the

enterprises under section 1718(c)(2) of this title and section

1452(b)(2) of this title;

(7) requiring the enterprises to submit reports under section

4514 of this title, section 1723a(k) of this title, and section

1456(c) of this title;

(8) prohibiting the payment of excessive compensation by the

enterprises to any executive officer of the enterprises under

section 4518 of this title;

(9) the management of the Office, including the establishment

and implementation of annual budgets, the hiring of, and

compensation levels for, personnel of the Office, and annual

assessments for the costs of the Office;

(10) conducting research and financial analysis; and

(11) the submission of reports required by the Director under

this chapter.

(c) Authority subject to approval of Secretary

Any determinations, actions, and functions of the Director not

referred to in subsection (b) of this section shall be subject to

the review and approval of the Secretary.

(d) Delegation of authority

The Director may delegate to officers and employees of the Office

any of the functions, powers, and duties of the Director, as the

Director considers appropriate.

(e) Independence in providing information to Congress

The Director shall not be required to obtain the prior approval,

comment, or review of any officer or agency of the United States

before submitting to the Congress, or any committee or subcommittee

thereof, any reports, recommendations, testimony, or comments if

such submissions include a statement indicating that the views

expressed therein are those of the Director and do not necessarily

represent the views of the Secretary or the President.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1313, Oct. 28, 1992, 106 Stat.

3945; Pub. L. 105-276, title II, Sec. 202(b), Oct. 21, 1998, 112

Stat. 2483; Pub. L. 105-277, div. A, Sec. 122, Oct. 21, 1998, 112

Stat. 2681-546.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in subsecs. (a) and (b)(11), 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 complete classification of title XIII to the

Code, see Short Title note set out under section 4501 of this title

and Tables.

-MISC2-

AMENDMENTS

1998 - Subsec. (b)(9) to (12). Pub. L. 105-276, which directed

the amendment of subsec. (b) by redesignating pars. (9) to (11) as

(10) to (12), respectively, and adding a new par. (9) which read

''default loss protection levels under section 1454(a)(2)(D) of

this title;'' was repealed by Pub. L. 105-277, effective upon

enactment of Pub. L. 105-276.

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-277, div. A, Sec. 122, Oct. 21, 1998, 112 Stat.

2681-546, provided that the amendment made by section 122 is

effective upon enactment of Pub. L. 105-276 (Oct. 21, 1998).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4526, 4541 of this title.

-CITE-

12 USC Sec. 4514 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part A - Financial Safety and Soundness Regulator

-HEAD-

Sec. 4514. Authority to require reports by enterprises

-STATUTE-

(a) Special reports and reports of financial condition

(1) Financial condition

The Director may require an enterprise to submit reports of

financial condition and operations (in addition to the annual and

quarterly reports required under section 1723a(k) of this title

and section 1456(c) of this title).

(2) Special reports

The Director may also require an enterprise to submit special

reports whenever, in the judgment of the Director, such reports

are necessary to carry out the purposes of this chapter.

(3) Limitation

The Director may not require the inclusion, in any report

pursuant to paragraph (1) or (2), of any information that is not

reasonably obtainable by the enterprise.

(4) Notice and declaration

The Director shall notify the enterprise, a reasonable period

in advance of the date for submission of any report under this

subsection, of any specific information to be contained in the

report and the date for the submission of the report. Each

report under this subsection shall contain a declaration by the

president, vice president, treasurer, or any other officer

designated by the board of directors of the enterprise to make

such declaration, that the report is true and correct to the best

of such officer's knowledge and belief.

(b) Capital distributions

The Director may require an enterprise to submit a report to the

Director after the declaration of any capital distribution by the

enterprise and before making the capital distribution. The report

shall be made in such form and under such circumstances and shall

contain such information as the Director shall require.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1314, Oct. 28, 1992, 106 Stat.

3946.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in subsec. (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 complete classification of title XIII to the Code,

see Short Title note set out under section 4501 of this title and

Tables.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1456, 1723a, 4513 of this

title.

-CITE-

12 USC Sec. 4515 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part A - Financial Safety and Soundness Regulator

-HEAD-

Sec. 4515. Personnel

-STATUTE-

(a) Office personnel

The Director may appoint and fix the compensation of such

officers and employees of the Office as the Director considers

necessary to carry out the functions of the Director and the

Office. Officers and employees may be paid without regard to the

provisions of chapter 51 and subchapter III of chapter 53 of title

5 relating to classification and General Schedule pay rates.

(b) Comparability of compensation with Federal banking agencies

In fixing and directing compensation under subsection (a) of this

section, the Director shall consult with, and maintain

comparability with compensation of officers and employees of the

Office of the Comptroller of the Currency, the Board of Governors

of the Federal Reserve System, the Federal Deposit Insurance

Corporation, and the Office of Thrift Supervision.

(c) Personnel of other Federal agencies

In carrying out the duties of the Office, the Director may use

information, services, staff, and facilities of any executive

agency, independent agency, or department on a reimbursable basis,

with the consent of such agency or department.

(d) Reimbursement of HUD

The Director shall reimburse the Department of Housing and Urban

Development for reasonable costs incurred by the Department that

are directly related to the operations of the Office.

(e) Outside experts and consultants

Notwithstanding any provision of law limiting pay or

compensation, the Director may appoint and compensate such outside

experts and consultants as the Director determines necessary to

assist the work of the Office.

(f) Equal opportunity report

Not later than the expiration of the 180-day period beginning

upon the appointment of the Director under section 4512 of this

title, the Director shall submit to the Committee on Banking,

Finance and Urban Affairs of the House of Representatives and the

Committee on Banking, Housing, and Urban Affairs of the Senate a

report containing -

(1) a complete description of the equal opportunity,

affirmative action, and minority business enterprise utilization

programs of the Office; and

(2) such recommendations for administrative and legislative

action as the Director determines appropriate to carry out such

programs.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1315, Oct. 28, 1992, 106 Stat.

3947.)

-CHANGE-

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of

Representatives treated as referring to Committee 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 Congress. Committee on Banking and Financial Services of House

of Representatives abolished and replaced by Committee on Financial

Services of House of Representatives, and jurisdiction over matters

relating to securities and exchanges and insurance generally

transferred from Committee on Energy and Commerce of House of

Representatives by House Resolution No. 5, One Hundred Seventh

Congress, Jan. 3, 2001.

-CITE-

12 USC Sec. 4516 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part A - Financial Safety and Soundness Regulator

-HEAD-

Sec. 4516. Funding

-STATUTE-

(a) Annual assessments

The Director may, to the extent provided in appropriation Acts,

establish and collect from the enterprises annual assessments in an

amount not exceeding the amount sufficient to provide for

reasonable costs and expenses of the Office, including the expenses

of any examinations under section 4517 of this title. The initial

annual assessment shall include any startup costs of the Office and

any anticipated costs and expenses of the Office for the following

fiscal year.

(b) Allocation of annual assessment to enterprises

(1) Amount of payment

Each enterprise shall pay to the Director a proportion of the

annual assessment made pursuant to subsection (a) of this section

that bears the same ratio to the total annual assessment that the

total assets of each enterprise bears (FOOTNOTE 1) to the total

assets of both enterprises.

(FOOTNOTE 1) So in original. Probably should be ''bear''.

(2) Timing of payment

The annual assessment shall be payable semiannually for each

fiscal year, on October 1 and April 1.

(3) ''Total assets'' defined

For the purpose of this section, the term ''total assets''

means, with respect to an enterprise, the sum of -

(A) on-balance-sheet assets of the enterprise, as determined

in accordance with generally accepted accounting principles;

(B) the unpaid principal balance of outstanding

mortgage-backed securities issued or guaranteed by the

enterprise that are not included in subparagraph (A); and

(C) other off-balance-sheet obligations as determined by the

Director.

(c) Deficiencies due to increased costs of regulation

The semiannual payments made pursuant to subsection (b) of this

section by any enterprise that is not classified (for purposes of

subchapter II of this chapter) as adequately capitalized may be

increased, as necessary, in the discretion of the Director to pay

additional estimated costs of regulation of the enterprise.

(d) Surplus

If any amount from any annual assessment collected from an

enterprise remains unobligated at the end of the year for which the

assessment was collected, such amount shall be credited to the

assessment to be collected from the enterprise for the following

year.

(e) Initial special assessment

Not later than the expiration of the 30-day period beginning on

October 28, 1992, the enterprises shall each pay into the Federal

Housing Enterprises Oversight Fund established under subsection (f)

of this section an initial assessment of $1,500,000 to cover the

startup costs of the Office, including space and modifications

thereof, capital equipment, supplies, recruitment, and activities

of the Office during the period preceding the first annual

assessment under subsection (a) of this section. Any amounts

collected from an enterprise under this subsection shall be

credited against the first annual assessment collected pursuant to

subsection (a) of this section, and are hereby appropriated, and

shall be available and used, without fiscal year limitation, as

provided in this section.

(f) Fund

There is established in the Treasury of the United States a fund

to be known as the Federal Housing Enterprises Oversight Fund. Any

assessments collected pursuant to this section shall be deposited

in the Fund. Amounts in the Fund shall be available, to the extent

provided in appropriation Acts and subsection (e) of this section,

for -

(1) carrying out the responsibilities of the Director relating

to the enterprises; and

(2) necessary administrative and nonadministrative expenses of

the Office to carry out the purposes of this chapter.

(g) Budget and financial reports

(1) Financial operating plans and forecasts

Before the beginning of each fiscal year, the Director shall

submit a copy of the financial operating plans and forecasts for

the Office to the Secretary and the Director of the Office of

Management and Budget.

(2) Reports of operations

As soon as practicable after the end of each fiscal year and

each quarter thereof, the Director shall submit a copy of the

report of the results of the operations of the Office during such

period to the Secretary and the Director of the Office of

Management and Budget.

(3) Inclusion in President's budget

The annual plans, forecasts, and reports required under this

subsection shall be included (A) in the Budget of the United

States in the appropriate form, and (B) in the congressional

justifications of the Department of Housing and Urban Development

for each fiscal year in a form determined by the Secretary.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1316, Oct. 28, 1992, 106 Stat.

3947; Pub. L. 104-134, title I, Sec. 101(e) (title II, Sec. 211),

Apr. 26, 1996, 110 Stat. 1321-257, 1321-288; renumbered title I,

Pub. L. 104-140, Sec. 1(a), May 2, 1996, 110 Stat. 1327.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in subsec. (f)(2), 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 complete classification of title XIII to the Code,

see Short Title note set out under section 4501 of this title and

Tables.

-MISC2-

AMENDMENTS

1996 - Subsec. (b)(2). Pub. L. 104-134 added par. (2) and struck

out heading and text of former par. (2). Text read as follows:

''The annual assessment shall be payable semiannually on September

1 and March 1 of the year for which the assessment is made.''

NON-REDUCTION OF FIRST ANNUAL ASSESSMENT

Pub. L. 103-124, title II, Oct. 28, 1993, 107 Stat. 1290,

provided in part: ''That notwithstanding the last sentence in

section 1316(e) of such Act (12 U.S.C. 4516(e)), the amount of this

first annual assessment shall not be reduced by any part of the

amount of the initial special assessment under section 1316(e)''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1455, 1719, 4548 of this

title.

-CITE-

12 USC Sec. 4517 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part A - Financial Safety and Soundness Regulator

-HEAD-

Sec. 4517. Examinations

-STATUTE-

(a) Annual examination

The Director shall annually conduct an on-site examination under

this section of each enterprise to determine the condition of the

enterprise for the purpose of ensuring its financial safety and

soundness.

(b) Other examinations

In addition to annual examinations under subsection (a) of this

section, the Director may conduct an examination under this section

whenever the Director determines that an examination is necessary

to determine the condition of an enterprise for the purpose of

ensuring its financial safety and soundness.

(c) Examiners

The Director shall appoint examiners to conduct examinations

under this section. The Director may contract with the Comptroller

of the Currency, the Board of Governors of the Federal Reserve

System, the Federal Deposit Insurance Corporation, or the Director

of the Office of Thrift Supervision for the services of examiners.

The Director shall reimburse such agencies for any costs of

providing examiners from amounts available in the Federal Housing

Enterprises Oversight Fund.

(d) Law applicable to examiners

The Director and each examiner shall have the same authority and

each examiner shall be subject to the same disclosures,

prohibitions, obligations, and penalties as are applicable to

examiners employed by the Federal Reserve banks.

(e) Technical experts

The Director may obtain the services of any technical experts the

Director considers appropriate to provide temporary technical

assistance relating to examinations to the Director, officers, and

employees of the Office. The Director shall describe, in the record

of each examination, the nature and extent of any such temporary

technical assistance.

(f) Oaths, evidence, and subpoena powers

In connection with examinations under this section, the Director

shall have the authority provided under section 4641 of this title.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1317, Oct. 28, 1992, 106 Stat.

3949.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4513, 4516, 4521 of this

title.

-CITE-

12 USC Sec. 4518 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part A - Financial Safety and Soundness Regulator

-HEAD-

Sec. 4518. Prohibition of excessive compensation

-STATUTE-

(a) In general

The Director shall prohibit the enterprises from providing

compensation to any executive officer of the enterprise that is not

reasonable and comparable with compensation for employment in other

similar businesses (including other publicly held financial

institutions or major financial services companies) involving

similar duties and responsibilities.

(b) Prohibition of setting compensation

In carrying out subsection (a) of this section, the Director may

not prescribe or set a specific level or range of compensation.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1318, Oct. 28, 1992, 106 Stat.

3949.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4513 of this title.

-CITE-

12 USC Sec. 4519 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part A - Financial Safety and Soundness Regulator

-HEAD-

Sec. 4519. Authority to provide for review of enterprises by rating

organization

-STATUTE-

The Director may, on such terms and conditions as the Director

deems appropriate, contract with any entity effectively recognized

by the Division of Market Regulation of the Securities and Exchange

Commission as a nationally recognized statistical rating

organization for the purposes of the capital rules for

broker-dealers, to conduct a review of the enterprises.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1319, Oct. 28, 1992, 106 Stat.

3950.)

-CITE-

12 USC Sec. 4520 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part A - Financial Safety and Soundness Regulator

-HEAD-

Sec. 4520. Equal opportunity in solicitation of contracts

-STATUTE-

(a) In general

Each enterprise shall establish a minority outreach program to

ensure the inclusion (to the maximum extent possible) in contracts

entered into by the enterprises of minorities and women and

businesses owned by minorities and women, including financial

institutions, investment banking firms, underwriters, accountants,

brokers, and providers of legal services.

(b) Report

Not later than the expiration of the 180-day period beginning on

October 28, 1992, each enterprise shall submit to the Committee on

Banking, Finance and Urban Affairs of the House of Representatives

and the Committee on Banking, Housing, and Urban Affairs of the

Senate a report describing the actions taken by the enterprise

pursuant to subsection (a) of this section.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1319A, Oct. 28, 1992, 106 Stat.

3950.)

-CHANGE-

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of

Representatives treated as referring to Committee 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 Congress. Committee on Banking and Financial Services of House

of Representatives abolished and replaced by Committee on Financial

Services of House of Representatives, and jurisdiction over matters

relating to securities and exchanges and insurance generally

transferred from Committee on Energy and Commerce of House of

Representatives by House Resolution No. 5, One Hundred Seventh

Congress, Jan. 3, 2001.

-CITE-

12 USC Sec. 4521 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part A - Financial Safety and Soundness Regulator

-HEAD-

Sec. 4521. Annual reports by Director

-STATUTE-

(a) General report

The Director shall submit to the Committee on Banking, Finance

and Urban Affairs of the House of Representatives and the Committee

on Banking, Housing, and Urban Affairs of the Senate, not later

than June 15 of each year, a written report, which shall include -

(1) a description of the actions taken, and being undertaken,

by the Director to carry out this chapter;

(2) a description of the financial safety and soundness of each

enterprise, including the results and conclusions of the annual

examinations of the enterprises conducted under section 4517(a)

of this title;

(3) any recommendations for legislation to enhance the

financial safety and soundness of the enterprises; and

(4) a description of -

(A) whether the procedures established by each enterprise

pursuant to section 4012a(b)(3) of title 42 are adequate and

being complied with, and

(B) the results and conclusions of any examination, as

determined necessary by the Director, to determine the

compliance of the enterprises with the requirements of section

4012a(b)(3) of title 42, which shall include a description of

the methods used to determine compliance and the types and

sources of deficiencies (if any), and identify any corrective

measures that have been taken to remedy any such deficiencies,

except that the information described in this paragraph shall be

included only in each of the first, third, and fifth annual

reports under this subsection required to be submitted after the

expiration of the 1-year period beginning on September 23, 1994.

(b) Report on enforcement actions

Not later than March 15 of each year, the Director shall submit

to the Committee on Banking, Finance and Urban Affairs of the House

of Representatives and the Committee on Banking, Housing, and Urban

Affairs of the Senate a written report describing, for the

preceding calendar year, the requests by the Director to the

Attorney General for enforcement actions under subchapter III of

this chapter and describing the disposition of each request, which

shall include statements of -

(1) the total number of requests made by the Director;

(2) the number of requests that resulted in the commencement of

litigation by the Department of Justice;

(3) the number of requests that did not result in the

commencement of litigation by the Department of Justice;

(4) with respect to requests that resulted in the commencement

of litigation -

(A) the number of days between the date of the request and

the commencement of the litigation; and

(B) the number of days between the date of the commencement

and termination of the litigation; and

(5) the number of litigation requests pending at the beginning

of the calendar year, the number of requests made during the

calendar year, the number of requests for which action was

completed during the calendar year, and the number of requests

pending at the end of the calendar year.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1319B, Oct. 28, 1992, 106 Stat.

3950; Pub. L. 103-325, title V, Sec. 529(c), Sept. 23, 1994, 108

Stat. 2267.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in subsec. (a)(1), 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 complete classification of title XIII to the Code,

see Short Title note set out under section 4501 of this title and

Tables.

-MISC2-

AMENDMENTS

1994 - Subsec. (a)(4). Pub. L. 103-325 added par. (4).

-CHANGE-

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of

Representatives treated as referring to Committee 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 Congress. Committee on Banking and Financial Services of House

of Representatives abolished and replaced by Committee on Financial

Services of House of Representatives, and jurisdiction over matters

relating to securities and exchanges and insurance generally

transferred from Committee on Energy and Commerce of House of

Representatives by House Resolution No. 5, One Hundred Seventh

Congress, Jan. 3, 2001.

-CITE-

12 USC Sec. 4522 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part A - Financial Safety and Soundness Regulator

-HEAD-

Sec. 4522. Public disclosure of final orders and agreements

-STATUTE-

(a) In general

The Director shall make available to the public -

(1) any written agreement or other written statement for which

a violation may be redressed by the Director or any modification

to or termination thereof, unless the Director, in the Director's

discretion, determines that public disclosure would be contrary

to the public interest or determines under subsection (c) of this

section that public disclosure would seriously threaten the

financial health or security of the enterprise;

(2) any order that is issued with respect to any administrative

enforcement proceeding initiated by the Director under subchapter

III of this chapter and that has become final; and

(3) any modification to or termination of any final order made

public pursuant to this subsection.

(b) Hearings

All hearings on the record with respect to any action of the

Director or notice of charges issued by the Director shall be open

to the public, unless the Director, in the Director's discretion,

determines that holding an open hearing would be contrary to the

public interest.

(c) Delay of public disclosure under exceptional circumstances

If the Director makes a determination in writing that the public

disclosure of any final order pursuant to subsection (a) of this

section would seriously threaten the financial health or security

of the enterprise, the Director may delay the public disclosure of

such order for a reasonable time.

(d) Documents filed under seal in public enforcement hearings

The Director may file any document or part thereof under seal in

any hearing under subchapter III of this chapter if the Director

determines in writing that disclosure thereof would be contrary to

the public interest.

(e) Retention of documents

The Director shall keep and maintain a record, for not less than

6 years, of all documents described in subsection (a) of this

section and all enforcement agreements and other supervisory

actions and supporting documents issued with respect to or in

connection with any enforcement proceeding initiated by the

Director under subchapter III of this chapter.

(f) Disclosures to Congress

This section may not be construed to authorize the withholding of

any information from, or to prohibit the disclosure of any

information to, the Congress or any committee or subcommittee

thereof.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1319C, Oct. 28, 1992, 106 Stat.

3951.)

-CITE-

12 USC Sec. 4523 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part A - Financial Safety and Soundness Regulator

-HEAD-

Sec. 4523. Limitation on subsequent employment

-STATUTE-

Neither the Director nor any former officer or employee of the

Office who, while employed by the Office, was compensated at a rate

in excess of the lowest rate for a position classified higher than

GS-15 of the General Schedule under section 5107 of title 5 may

accept compensation from an enterprise during the 2-year period

beginning on the date of separation from employment by the Office.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1319D, Oct. 28, 1992, 106 Stat.

3951.)

-CITE-

12 USC Sec. 4524 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part A - Financial Safety and Soundness Regulator

-HEAD-

Sec. 4524. Audits by GAO

-STATUTE-

The Comptroller General may audit the operations of the Office,

and any such audit shall be conducted in accordance with generally

accepted Government auditing standards. All books, records,

accounts, reports, files, and property belonging to, or used by,

the Office shall be made available to the Comptroller General.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1319E, Oct. 28, 1992, 106 Stat.

3952; Pub. L. 104-316, title I, Sec. 106(h), Oct. 19, 1996, 110

Stat. 3831.)

-MISC1-

AMENDMENTS

1996 - Pub. L. 104-316, in first sentence, substituted ''may

audit'' for ''shall audit'' and inserted '', and any such audit

shall be conducted'' after ''Office'', and struck out at end

''Audits under this section shall be conducted annually for the

first 2 fiscal years following October 28, 1992, and as appropriate

thereafter.''

-CITE-

12 USC Sec. 4525 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part A - Financial Safety and Soundness Regulator

-HEAD-

Sec. 4525. Information, records, and meetings

-STATUTE-

For purposes of subchapter II of chapter 5 of title 5 -

(1) the Office, and

(2) the Department of Housing and Urban Development, with

respect to activities under this chapter,

shall be considered agencies responsible for the regulation or

supervision of financial institutions.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1319F, Oct. 28, 1992, 106 Stat.

3952.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in cl. (2), 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

complete classification of title XIII to the Code, see Short Title

note set out under section 4501 of this title and Tables.

-CITE-

12 USC Sec. 4526 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part A - Financial Safety and Soundness Regulator

-HEAD-

Sec. 4526. Regulations and orders

-STATUTE-

(a) Authority

The Director shall issue any regulations and orders necessary to

carry out the duties of the Director and to carry out this chapter

before the expiration of the 18-month period beginning on the

appointment of the Director under section 4512 of this title. Such

regulations and orders shall be subject to the approval of the

Secretary only to the extent provided in subsections (b) and (c) of

section 4513 of this title.

(b) Notice and comment

Any regulations issued by the Director under this section shall

be issued after notice and opportunity for public comment pursuant

to the provisions of section 553 of title 5.

(c) Congressional review

The Director may not publish any regulation for comment under

subsection (b) of this section unless, not less than 15 days before

it is published for comment, the Director has submitted a copy of

the regulation, in the form it is intended to be proposed, to the

Committee on Banking, Finance and Urban Affairs of the House of

Representatives and the Committee on Banking, Housing, and Urban

Affairs of the Senate.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1319G, Oct. 28, 1992, 106 Stat.

3952.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in subsec. (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 complete classification of title XIII to the Code,

see Short Title note set out under section 4501 of this title and

Tables.

-CHANGE-

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of

Representatives treated as referring to Committee 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 Congress. Committee on Banking and Financial Services of House

of Representatives abolished and replaced by Committee on Financial

Services of House of Representatives, and jurisdiction over matters

relating to securities and exchanges and insurance generally

transferred from Committee on Energy and Commerce of House of

Representatives by House Resolution No. 5, One Hundred Seventh

Congress, Jan. 3, 2001.

-CITE-

12 USC Part B - Authority of Secretary 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

.

-HEAD-

Part B - Authority of Secretary

-CITE-

12 USC subpart 1 - general authority 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 1 - general authority

.

-HEAD-

subpart 1 - general authority

-CITE-

12 USC Sec. 4541 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 1 - general authority

-HEAD-

Sec. 4541. Regulatory authority

-STATUTE-

Except for the authority of the Director of the Office of Federal

Housing Enterprise Oversight described in section 4513(b) of this

title and all other matters relating to the safety and soundness of

the enterprises, the Secretary of Housing and Urban Development

shall have general regulatory power over each enterprise and shall

make such rules and regulations as shall be necessary and proper to

ensure that this part and the purposes of the Federal National

Mortgage Association Charter Act (12 U.S.C. 1716 et seq.) and the

Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451 et seq.)

are accomplished.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1321, Oct. 28, 1992, 106 Stat.

3952.)

-REFTEXT-

REFERENCES IN TEXT

The Federal National Mortgage Association Charter Act, referred

to in text, is title III of act June 27, 1934, ch. 847, 48 Stat.

1252, as amended, which is classified generally to subchapter III

(Sec. 1716 et seq.) of chapter 13 of this title. For complete

classification of this Act to the Code, see Short Title note set

out under section 1716 of this title and Tables.

The Federal Home Loan Mortgage Corporation Act, referred to in

text, is title III of Pub. L. 91-351, July 24, 1970, 84 Stat. 451,

as amended, which is classified generally to chapter 11A (Sec. 1451

et seq.) of this title. For complete classification of this Act to

the Code, see Short Title and Statement of Purpose note set out

under section 1451 of this title and Tables.

-CITE-

12 USC Sec. 4542 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 1 - general authority

-HEAD-

Sec. 4542. Prior approval authority for new programs

-STATUTE-

(a) Authority

The Secretary shall require each enterprise to obtain the

approval of the Secretary for any new program of the enterprise

before implementing the program.

(b) Standard for approval

(1) Permanent standard

Except as provided in paragraph (2), the Secretary shall

approve any new program of an enterprise for purposes of

subsection (a) of this section unless -

(A) for a new program of the Federal National Mortgage

Association, the Secretary determines that the program is not

authorized under paragraph (2), (3), (4), or (5) of section

1717(b) of this title, or under section 1719 of this title;

(B) for a new program of the Federal Home Loan Mortgage

Corporation, the Secretary determines that the program is not

authorized under section 1454(a)(1), (4), or (5) of this title;

or

(C) the Secretary determines that the new program is not in

the public interest.

(2) Transition standard

Before the date occurring 12 months after the date of the

effectiveness of the regulations under section 4611(e) of this

title establishing the risk-based capital test, the Secretary

shall approve any new program of an enterprise for purposes of

subsection (a) of this section unless -

(A) The (FOOTNOTE 1) Secretary makes a determination as

described in paragraph (1)(A), (B), or (C); or

(FOOTNOTE 1) So in original. Probably should not be

capitalized.

(B) the Director determines that the new program would risk

significant deterioration of the financial condition of the

enterprise.

(c) Procedure for approval

(1) Submission of request

To obtain the approval of the Secretary for purposes of

subsection (a) of this section, an enterprise shall submit to the

Secretary a written request for approval of the new program that

describes the program.

(2) Response

The Secretary shall, not later than the expiration of the

45-day period beginning upon the submission of a request for

approval, approve the request or submit to the Committee on

Banking, Finance and Urban Affairs of the House of

Representatives and the Committee on Banking, Housing, and Urban

Affairs of the Senate a report explaining the reasons for not

approving the request. The Secretary may extend such period for

a single additional 15-day period only if the Secretary requests

additional information from the enterprise.

(3) Failure to respond

If the Secretary fails to approve the request or fails to

submit a report under paragraph (2) during the period under such

paragraph, the request shall be considered to have been approved.

(4) Review of disapproval

(A) Unauthorized new programs

If the Secretary submits a report under paragraph (2) of this

subsection disapproving a request for approval on the grounds

under subparagraph (A) or (B) of subsection (b)(1) of this

section, the Secretary shall provide the enterprise submitting

the request with a timely opportunity to review and supplement

the administrative record.

(B) New programs not in public interest

If the Secretary submits a report under paragraph (2) of this

subsection disapproving a request for approval on the grounds

under subsection (b)(1)(C) or (b)(2)(B) of this section, the

Secretary shall provide the enterprise submitting the request

notice of, and opportunity for, a hearing on the record

regarding such disapproval.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1322, Oct. 28, 1992, 106 Stat.

3953.)

-CHANGE-

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of

Representatives treated as referring to Committee 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 Congress. Committee on Banking and Financial Services of House

of Representatives abolished and replaced by Committee on Financial

Services of House of Representatives, and jurisdiction over matters

relating to securities and exchanges and insurance generally

transferred from Committee on Energy and Commerce of House of

Representatives by House Resolution No. 5, One Hundred Seventh

Congress, Jan. 3, 2001.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1454, 1717, 4617 of this

title.

-CITE-

12 USC Sec. 4543 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 1 - general authority

-HEAD-

Sec. 4543. Public access to mortgage information

-STATUTE-

(a) In general

The Secretary shall make available to the public, in forms useful

to the public (including forms accessible by computers), the data

submitted by the enterprises in the reports required under section

1723a(m) of this title or section 1456(e) of this title.

(b) Access

(1) Proprietary data

Except as provided in paragraph (2), the Secretary may not make

available to the public data that the Secretary determines

pursuant to section 4546 of this title are proprietary

information.

(2) Exception

The Secretary shall not restrict access to the data provided in

accordance with section 1723a(m)(1)(A) of this title or section

1456(e)(1)(A) of this title.

(c) Fees

The Secretary may charge reasonable fees to cover the cost of

making data available under this section to the public.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1323, Oct. 28, 1992, 106 Stat.

3954.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4546 of this title.

-CITE-

12 USC Sec. 4544 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 1 - general authority

-HEAD-

Sec. 4544. Annual housing report

-STATUTE-

(a) In general

After reviewing and analyzing the reports submitted under section

1723a(n) of this title and section 1456(f) of this title, the

Secretary shall submit a report, as part of the annual report under

section 4548(a) of this title, on the extent to which each

enterprise is achieving the annual housing goals established under

subpart 2 of this part and the purposes of the enterprise

established by law.

(b) Contents

The report shall -

(1) aggregate and analyze census tract data to assess the

compliance of each enterprise with the central cities, rural

areas, and other underserved areas housing goal and to determine

levels of business in central cities, rural areas, underserved

areas, low- and moderate-income census tracts, minority census

tracts, and other geographical areas deemed appropriate by the

Secretary;

(2) aggregate and analyze data on income to assess the

compliance of each enterprise with the low- and moderate-income

and special affordable housing goals;

(3) aggregate and analyze data on income, race, and gender by

census tract and compare such data with larger demographic,

housing, and economic trends;

(4) examine actions that each enterprise has undertaken or

could undertake to promote and expand the annual goals

established under sections 4562, 4563, and 4564 of this title,

and the purposes of the enterprise established by law;

(5) examine the primary and secondary multifamily housing

mortgage markets and describe -

(A) the availability and liquidity of mortgage credit;

(B) the status of efforts to provide standard credit terms

and underwriting guidelines for multifamily housing and to

securitize such mortgage products; and

(C) any factors inhibiting such standardization and

securitization;

(6) examine actions each enterprise has undertaken and could

undertake to promote and expand opportunities for first-time

homebuyers; and

(7) describe any actions taken under section 4545(5) of this

title with respect to originators found to violate fair lending

procedures.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1324, Oct. 28, 1992, 106 Stat.

3954.)

-CITE-

12 USC Sec. 4545 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 1 - general authority

-HEAD-

Sec. 4545. Fair housing

-STATUTE-

The Secretary shall -

(1) by regulation, prohibit each enterprise from discriminating

in any manner in the purchase of any mortgage because of race,

color, religion, sex, handicap, familial status, age, or national

origin, including any consideration of the age or location of the

dwelling or the age of the neighborhood or census tract where the

dwelling is located in a manner that has a discriminatory effect;

(2) by regulation, require each enterprise to submit data to

the Secretary to assist the Secretary in investigating whether a

mortgage lender with which the enterprise does business has

failed to comply with the Fair Housing Act (42 U.S.C. 3601 et

seq.);

(3) by regulation, require each enterprise to submit data to

the Secretary to assist in investigating whether a mortgage

lender with which the enterprise does business has failed to

comply with the Equal Credit Opportunity Act (15 U.S.C. 1691 et

seq.), and shall submit any such information received to the

appropriate Federal agencies, as provided in section 704 of the

Equal Credit Opportunity Act (15 U.S.C. 1691c), for appropriate

action;

(4) obtain information from other regulatory and enforcement

agencies of the Federal Government and State and local

governments regarding violations by lenders of the Fair Housing

Act and the Equal Credit Opportunity Act and make such

information available to the enterprises;

(5) direct the enterprises to undertake various remedial

actions, including suspension, probation, reprimand, or

settlement, against lenders that have been found to have engaged

in discriminatory lending practices in violation of the Fair

Housing Act or the Equal Credit Opportunity Act, pursuant to a

final adjudication on the record, and after opportunity for an

administrative hearing, in accordance with subchapter II of

chapter 5 of title 5; and

(6) periodically review and comment on the underwriting and

appraisal guidelines of each enterprise to ensure that such

guidelines are consistent with the Fair Housing Act and this

section.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1325, Oct. 28, 1992, 106 Stat.

3955.)

-REFTEXT-

REFERENCES IN TEXT

The Fair Housing Act, referred to in pars. (2) and (4) to (6), is

title VIII of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as

amended, which is classified principally to subchapter I (Sec. 3601

et seq.) of chapter 45 of Title 42, The Public Health and Welfare.

For complete classification of this Act to the Code, see Short

Title note set out under section 3601 of Title 42 and Tables.

The Equal Credit Opportunity Act, referred to in pars. (3) to

(5), is title VII of Pub. L. 90-321, as added by Pub. L. 93-495,

title V, Sec. 503, Oct. 28, 1974, 88 Stat. 1521, as amended, which

is classified generally to subchapter IV (Sec. 1691 et seq.) of

chapter 41 of Title 15, Commerce and Trade. For complete

classification of this Act to the Code, see Short Title note set

out under section 1601 of Title 15 and Tables.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4544 of this title.

-CITE-

12 USC Sec. 4546 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 1 - general authority

-HEAD-

Sec. 4546. Prohibition of public disclosure of proprietary

information

-STATUTE-

(a) In general

The Secretary may, by regulation or order, provide that certain

information shall be treated as proprietary information and not

subject to disclosure under section 4543 of this title, section

1723a(n)(3) of this title, or section 1456(f)(3) of this title.

(b) Protection of information on housing activities

The Secretary shall not provide public access to, or disclose to

the public, any information required to be submitted by an

enterprise under section 1723a(n) of this title or section 1456(f)

of this title that the Secretary determines is proprietary.

(c) Nondisclosure pending consideration

This section may not be construed to authorize the disclosure of

information to, or examination of data by, the public or a

representative of any person or agency pending the issuance of a

final decision under this section.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1326, Oct. 28, 1992, 106 Stat.

3955.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1456, 1723a, 4543 of this

title.

-CITE-

12 USC Sec. 4547 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 1 - general authority

-HEAD-

Sec. 4547. Authority to require reports by enterprises

-STATUTE-

The Secretary shall require each enterprise to submit reports on

its activities to the Secretary as the Secretary considers

appropriate.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1327, Oct. 28, 1992, 106 Stat.

3956.)

-CITE-

12 USC Sec. 4548 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 1 - general authority

-HEAD-

Sec. 4548. Reports by Secretary

-STATUTE-

(a) Annual report

The Secretary shall, not later than June 30 of each year, submit

a report to the Committee on Banking, Finance and Urban Affairs of

the House of Representatives and the Committee on Banking, Housing,

and Urban Affairs of the Senate on the activities of each

enterprise.

(b) Views on budget and financial plans of enterprises

On an annual basis, the Secretary shall provide the Committees

referred to in subsection (a) of this section with comments on the

plans, forecasts, and reports required under section 4516(g) of

this title.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1328, Oct. 28, 1992, 106 Stat.

3956.)

-CHANGE-

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of

Representatives treated as referring to Committee 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 Congress. Committee on Banking and Financial Services of House

of Representatives abolished and replaced by Committee on Financial

Services of House of Representatives, and jurisdiction over matters

relating to securities and exchanges and insurance generally

transferred from Committee on Energy and Commerce of House of

Representatives by House Resolution No. 5, One Hundred Seventh

Congress, Jan. 3, 2001.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4544 of this title.

-CITE-

12 USC subpart 2 - housing goals 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 2 - housing goals

.

-HEAD-

subpart 2 - housing goals

-SECREF-

SUBPART REFERRED TO IN OTHER SECTIONS

This subpart is referred to in sections 1456, 1723a, 4544, 4631,

4636 of this title.

-CITE-

12 USC Sec. 4561 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 2 - housing goals

-HEAD-

Sec. 4561. Establishment

-STATUTE-

(a) In general

The Secretary shall establish, by regulation, housing goals under

this subpart for each enterprise. The housing goals shall include

a low- and moderate-income housing goal pursuant to section 4562 of

this title, a special affordable housing goal pursuant to section

4563 of this title, and a central cities, rural areas, and other

underserved areas housing goal pursuant to section 4564 of this

title. The Secretary shall implement this subpart in a manner

consistent with section 1716(3) of this title and section 301(b)(3)

of the Federal Home Loan Mortgage Corporation Act.

(b) Consideration of units in multifamily housing

In establishing any goal under this subpart, the Secretary may

take into consideration the number of housing units financed by any

mortgage on multifamily housing purchased by an enterprise.

(c) Adjustment of housing goals

Except as otherwise provided in this chapter, from year to year

the Secretary may, by regulation, adjust any housing goal

established under this subpart.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1331, Oct. 28, 1992, 106 Stat.

3956.)

-REFTEXT-

REFERENCES IN TEXT

Section 301(b)(3) of the Federal Home Loan Mortgage Corporation

Act, referred to in subsec. (a), is section 301(b)(3) of Pub. L.

91-351, as amended, which is set out as a Short Title and Statement

of Purpose note under section 1451 of this title.

This chapter, referred to in subsec. (c), 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 complete classification of title XIII to the Code,

see Short Title note set out under section 4501 of this title and

Tables.

-CITE-

12 USC Sec. 4562 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 2 - housing goals

-HEAD-

Sec. 4562. Low- and moderate-income housing goal

-STATUTE-

(a) In general

The Secretary shall establish an annual goal for the purchase by

each enterprise of mortgages on housing for low- and

moderate-income families. The Secretary may establish separate

specific subgoals within the goal under this section and such

subgoals shall not be enforceable under the provisions of section

4566 of this title, any other provision of this chapter, or any

provision of the Federal National Mortgage Association Charter Act

(12 U.S.C. 1716 et seq.) or the Federal Home Loan Mortgage

Corporation Act (12 U.S.C. 1451 et seq.).

(b) Factors to be applied

In establishing the goal under this section, the Secretary shall

consider -

(1) national housing needs;

(2) economic, housing, and demographic conditions;

(3) the performance and effort of the enterprises toward

achieving the low- and moderate-income housing goal in previous

years;

(4) the size of the conventional mortgage market serving low-

and moderate-income families relative to the size of the overall

conventional mortgage market;

(5) the ability of the enterprises to lead the industry in

making mortgage credit available for low- and moderate-income

families; and

(6) the need to maintain the sound financial condition of the

enterprises.

(c) Use of borrower and tenant income

(1) In general

The Secretary shall monitor the performance of each enterprise

in carrying out this section and shall evaluate such performance

(for purposes of section 4566 of this title) based on -

(A) in the case of an owner-occupied dwelling, the

mortgagor's income at the time of origination of the mortgage;

or

(B) in the case of a rental dwelling -

(i) the income of the prospective or actual tenants of the

property, where such data are available; or

(ii) the rent levels affordable to low- and moderate-income

families, where the data referred to in clause (i) are not

available.

(2) Affordability

For the purpose of paragraph (1)(B)(ii), a rent level shall be

considered affordable if it does not exceed 30 percent of the

maximum income level of the income categories referred to in this

section, with appropriate adjustments for unit size as measured

by the number of bedrooms.

(d) Transition

(1) Interim target

Notwithstanding any other provision of this section, during the

2-year period beginning on January 1, 1993, the annual target

under this section for low- and moderate-income mortgage

purchases for each enterprise shall be 30 percent of the total

number of dwelling units financed by mortgage purchases of the

enterprise.

(2) Interim goal

During such 2-year period, the Secretary shall establish a

separate annual goal for each enterprise, the achievement of

which shall require -

(A) an enterprise that is not meeting the target under

paragraph (1) upon January 1, 1993, to improve its performance

relative to such target annually and, to the maximum extent

feasible, to meet such target at the conclusion of such 2-year

period; and

(B) an enterprise that is meeting the target under paragraph

(1) upon January 1, 1993, to improve its performance relative

to the target.

(3) Implementation

The Secretary shall establish any requirements necessary to

implement the transition provisions under this subsection by

notice, after providing the enterprises with an opportunity to

review and comment not less than 30 days before the issuance of

such notice. Such notice shall be issued not later than the

expiration of the 90-day period beginning upon October 28, 1992,

and shall be effective upon issuance.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1332, Oct. 28, 1992, 106 Stat.

3956.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in subsec. (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 complete classification of title XIII to the Code,

see Short Title note set out under section 4501 of this title and

Tables.

The Federal National Mortgage Association Charter Act, referred

to in subsec. (a), is title III of act June 27, 1934, ch. 847, 48

Stat. 1252, as amended, which is classified generally to subchapter

III (Sec. 1716 et seq.) of chapter 13 of this title. For complete

classification of this Act to the Code, see Short Title note set

out under section 1716 of this title and Tables.

The Federal Home Loan Mortgage Corporation Act, referred to in

subsec. (a), is title III of Pub. L. 91-351, July 24, 1970, 84

Stat. 451, as amended, which is classified generally to chapter 11A

(Sec. 1451 et seq.) of this title. For complete classification of

this Act to the Code, see Short Title and Statement of Purpose note

set out under section 1451 of this title and Tables.

-MISC2-

EFFECTIVE DATE

Section 1338 of Pub. L. 102-550 provided that: ''The housing

goals established under sections 1332(d), 1333(d), and 1334(d) (12

U.S.C. 4562(d), 4563(d), 4564(d)) shall not become effective until

January 1, 1993.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4544, 4561, 4565, 4566,

4567, 4589 of this title.

-CITE-

12 USC Sec. 4563 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 2 - housing goals

-HEAD-

Sec. 4563. Special affordable housing goal

-STATUTE-

(a) Establishment

(1) In general

The Secretary shall establish a special annual goal designed to

adjust the purchase by each enterprise of mortgages on rental and

owner-occupied housing to meet the then-existing unaddressed

needs of, and affordable to, low-income families in low-income

areas and very low-income families. The special affordable

housing goal established under this section for an enterprise

shall not be less than 1 percent of the dollar amount of the

mortgage purchases by the enterprise for the previous year.

(2) Standards

In establishing the special affordable housing goal for an

enterprise, the Secretary shall consider -

(A) data submitted to the Secretary in connection with the

special affordable housing goal for previous years;

(B) the performance and efforts of the enterprise toward

achieving the special affordable housing goal in previous

years;

(C) national housing needs within the categories set forth in

this section;

(D) the ability of the enterprise to lead the industry in

making mortgage credit available for low-income and very

low-income families; and

(E) the need to maintain the sound financial condition of the

enterprise.

(b) Full credit activities

(1) In general

The Secretary shall give full credit toward achievement of the

special affordable housing goal under this section (for purposes

of section 4566 of this title) to the following activities:

(A) Federally related mortgages

The purchase or securitization of federally insured or

guaranteed mortgages, if -

(i) such mortgages cannot be readily securitized through

the Government National Mortgage Association or any other

Federal agency;

(ii) participation of the enterprise substantially enhances

the affordability of the housing subject to such mortgages;

and

(iii) the mortgages involved are on housing that otherwise

qualifies under such goal to be considered for purposes of

such goal.

(B) Portfolios

The purchase or refinancing of existing, seasoned portfolios

of loans, if -

(i) the seller is engaged in a specific program to use the

proceeds of such sales to originate additional loans that

meet such goal; and

(ii) such purchases or refinancings support additional

lending for housing that otherwise qualifies under such goal

to be considered for purposes of such goal.

(C) RTC and FDIC loans

The purchase of direct loans made by the Resolution Trust

Corporation or the Federal Deposit Insurance Corporation, if

such loans -

(i) are not guaranteed by such agencies themselves or other

Federal agencies;

(ii) are made with recourse provisions similar to those

offered through private mortgage insurance or other

conventional sellers; and

(iii) are made for the purchase of housing that otherwise

qualifies under such goal to be considered for purposes of

such goal.

(2) Exclusion

No credit toward the achievement of the special affordable

housing goal may be given to the purchase or securitization of

mortgages associated with the refinancing of the existing

enterprise portfolios.

(c) Use of borrower and tenant income

(1) In general

The Secretary shall monitor the performance of each enterprise

in carrying out this section and shall evaluate such performance

(for purposes of section 4566 of this title) based on -

(A) in the case of an owner-occupied dwelling, the

mortgagor's income at the time of origination of the mortgage;

or

(B) in the case of a rental dwelling -

(i) the income of the prospective or actual tenants of the

property, where such data are available; or

(ii) the rent levels affordable to low-income and very

low-income families, where the data referred to in clause (i)

are not available.

(2) Affordability

For the purpose of paragraph (1)(B)(ii), a rent level shall be

considered affordable if it does not exceed 30 percent of the

maximum income level of the income categories referred to in this

section, with appropriate adjustments for unit size as measured

by the number of bedrooms.

(d) Transition

(1) FNMA mortgage purchases

Notwithstanding any other provision of this section, during the

2-year period beginning on January 1, 1993, the special

affordable housing goal for the Federal National Mortgage

Association shall include mortgage purchases of not less than

$2,000,000,000 (for such 2-year period), with one-half of such

purchases consisting of mortgages on single family housing and

one-half consisting of mortgages on multifamily housing.

(2) FHLMC mortgage purchases

Notwithstanding any other provision of this section, during the

2-year period beginning on January 1, 1993, the special

affordable housing goal for the Federal Home Loan Mortgage

Corporation shall include mortgage purchases of not less than

$1,500,000,000 (for such 2-year period), with one-half of such

purchases consisting of mortgages on single family housing and

one-half consisting of mortgages on multifamily housing.

(3) Income characteristics for mortgage purchases

(A) Multifamily mortgages

The special affordable housing goals established under

paragraphs (1) and (2) shall provide that, of mortgages on

multifamily housing that are purchased and contribute to the

achievement of such goals -

(i) 45 percent shall be mortgages on multifamily housing

affordable to low-income families; and

(ii) 55 percent shall be mortgages on multifamily housing

in which -

(I) at least 20 percent of the units are affordable to

families whose incomes do not exceed 50 percent of the

median income for the area; or

(II) at least 40 percent of the units are affordable to

very low-income families.

(B) Single family mortgages

The special affordable housing goals established under

paragraphs (1) and (2) shall provide that, of mortgages on

single family housing that are purchased and contribute to the

achievement of such goals -

(i) 45 percent shall be mortgages of low-income families

who live in census tracts in which the median income does not

exceed 80 percent of the area median income; and

(ii) 55 percent shall be mortgages of very low-income

families.

(C) Compliance with special affordable housing goals

Only the portion of mortgages on multifamily housing

purchased by an enterprise that are attributable to units

affordable to low-income families shall contribute to the

achievement of the special affordable housing goals under

subparagraph (A)(ii).

(4) Implementation

The Secretary shall establish any requirements necessary to

implement the transition provisions under this subsection by

notice, after providing the enterprises with an opportunity to

review and comment not less than 30 days before the issuance of

such notice. Such notice shall be issued not later than the

expiration of the 90-day period beginning upon October 28, 1992,

and shall be effective upon issuance.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1333, Oct. 28, 1992, 106 Stat.

3958.)

-MISC1-

EFFECTIVE DATE

Housing goals established under subsec. (d) of this section

effective Jan. 1, 1993, see section 1338 of Pub. L. 102-550, set

out as a note under section 4562 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4544, 4561, 4565, 4566,

4567, 4589 of this title.

-CITE-

12 USC Sec. 4564 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 2 - housing goals

-HEAD-

Sec. 4564. Central cities, rural areas, and other underserved areas

housing goal

-STATUTE-

(a) In general

The Secretary shall establish an annual goal for the purchase by

each enterprise of mortgages on housing located in central cities,

rural areas, and other underserved areas. The Secretary may

establish separate subgoals within the goal under this section and

such subgoals shall not be enforceable under the provisions of

section 4566 of this title, any other provision of this chapter, or

any provision of the Federal National Mortgage Association Charter

Act (12 U.S.C. 1716 et seq.) or the Federal Home Loan Mortgage

Corporation Act (12 U.S.C. 1451 et seq.).

(b) Factors to be applied

In establishing the housing goal under this section, the

Secretary shall consider -

(1) urban and rural housing needs and the housing needs of

underserved areas;

(2) economic, housing, and demographic conditions;

(3) the performance and efforts of the enterprises toward

achieving the central cities, rural areas, and other underserved

areas housing goal in previous years;

(4) the size of the conventional mortgage market for central

cities, rural areas, and other underserved areas relative to the

size of the overall conventional mortgage market;

(5) the ability of the enterprises to lead the industry in

making mortgage credit available throughout the United States,

including central cities, rural areas, and other underserved

areas; and

(6) the need to maintain the sound financial condition of the

enterprises.

(c) Location of properties

The Secretary shall monitor the performance of each enterprise in

carrying out this section and shall evaluate such performance (for

purposes of section 4566 of this title) based on the location of

the properties subject to mortgages purchased by each enterprise.

(d) Transition

(1) Interim target

Notwithstanding any other provision of this section, during the

2-year period beginning on January 1, 1993, the annual target

under this section for purchases by each enterprise of mortgages

on housing located in central cities shall be 30 percent of the

total number of dwelling units financed by mortgage purchases of

the enterprise.

(2) Interim goal

During such 2-year period, the Secretary shall establish a

separate annual goal for each enterprise, the achievement of

which shall require -

(A) an enterprise that is not meeting the target under

paragraph (1) upon January 1, 1993, to improve its performance

relative to such target annually and, to the maximum extent

feasible, to meet such target at the conclusion of such 2-year

period; and

(B) an enterprise that is meeting the target under paragraph

(1) upon January 1, 1993, to improve its performance relative

to the target.

(3) ''Central city'' defined

For purposes of this subsection, the term ''central city''

means any political subdivision designated as a central city by

the Office of Management and Budget.

(4) Implementation

The Secretary shall establish any requirements necessary to

implement the transition provisions under this subsection by

notice, after providing the enterprises with an opportunity to

review and comment not less than 30 days before the issuance of

such notice. Such notice shall be issued not later than the

expiration of the 90-day period beginning upon October 28, 1992,

and shall be effective upon issuance.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1334, Oct. 28, 1992, 106 Stat.

3960.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in subsec. (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 complete classification of title XIII to the Code,

see Short Title note set out under section 4501 of this title and

Tables.

The Federal National Mortgage Association Charter Act, referred

to in subsec. (a), is title III of act June 27, 1934, ch. 847, 48

Stat. 1252, as amended, which is classified generally to subchapter

III (Sec. 1716 et seq.) of chapter 13 of this title. For complete

classification of this Act to the Code, see Short Title note set

out under section 1716 of this title and Tables.

The Federal Home Loan Mortgage Corporation Act, referred to in

subsec. (a), is title III of Pub. L. 91-351, July 24, 1970, 84

Stat. 451, as amended, which is classified generally to chapter 11A

(Sec. 1451 et seq.) of this title. For complete classification of

this Act to the Code, see Short Title and Statement of Purpose note

set out under section 1451 of this title and Tables.

-MISC2-

EFFECTIVE DATE

Housing goals established under subsec. (d) of this section

effective Jan. 1, 1993, see section 1338 of Pub. L. 102-550, set

out as a note under section 4562 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4544, 4561, 4565, 4566,

4567, 4589 of this title.

-CITE-

12 USC Sec. 4565 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 2 - housing goals

-HEAD-

Sec. 4565. Other requirements

-STATUTE-

(a) In general

To meet the low- and moderate-income housing goal under section

4562 of this title, the special affordable housing goal under

section 4563 of this title, and the central cities, rural areas,

and other underserved areas housing goal under section 4564 of this

title, each enterprise shall -

(1) design programs and products that facilitate the use of

assistance provided by the Federal Government and State and local

governments;

(2) develop relationships with nonprofit and for-profit

organizations that develop and finance housing and with State and

local governments, including housing finance agencies;

(3) take affirmative steps to -

(A) assist primary lenders to make housing credit available

in areas with concentrations of low-income and minority

families, and

(B) assist insured depository institutions to meet their

obligations under the Community Reinvestment Act of 1977 (12

U.S.C. 2901 et seq.),

which shall include developing appropriate and prudent

underwriting standards, business practices, repurchase

requirements, pricing, fees, and procedures;

(4) develop the institutional capacity to help finance low- and

moderate-income housing, including housing for first-time

homebuyers; and

(5) assist in maintaining the affordability of assisted units

in eligible multifamily housing projects with expiring contracts,

as defined under the Multifamily Assisted Housing Reform and

Affordability Act of 1997.

(b) Affordable housing goals

Actions taken under subsection (a)(5) of this section shall

constitute part of the contribution of each entity in meeting its

affordable housing goals under sections 4562, 4563, and 4564 of

this title for any fiscal year, as determined by the Secretary.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1335, Oct. 28, 1992, 106 Stat.

3961; Pub. L. 105-65, title V, Sec. 517(c), Oct. 27, 1997, 111

Stat. 1403.)

-REFTEXT-

REFERENCES IN TEXT

The Community Reinvestment Act of 1977, referred to in subsec.

(a)(3)(B), is title VIII of Pub. L. 95-128, Oct. 12, 1977, 91 Stat.

1147, as amended, which is classified generally to chapter 30 (Sec.

2901 et seq.) of this title. For complete classification of this

Act to the Code, see Short Title note set out under section 2901 of

this title and Tables.

The Multifamily Assisted Housing Reform and Affordability Act of

1997, referred to in subsec. (a)(5), is title V of Pub. L. 105-65,

Oct. 27, 1997, 111 Stat. 1384. For complete classification of this

Act to the Code, see Short Title of 1997 Amendment note set out

under section 1701 of this title and Tables.

-MISC2-

AMENDMENTS

1997 - Subsec. (a). Pub. L. 105-65, Sec. 517(c)(3), designated

existing provisions as subsec. (a) and inserted heading.

Subsec. (a)(5). Pub. L. 105-65, Sec. 517(c)(1), (2), (4), added

par. (5).

Subsec. (b). Pub. L. 105-65, Sec. 517(c)(4), added subsec. (b).

-CITE-

12 USC Sec. 4566 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 2 - housing goals

-HEAD-

Sec. 4566. Monitoring and enforcing compliance with housing goals

-STATUTE-

(a) In general

(1) Authority

The Secretary shall monitor and enforce compliance with the

housing goals established under sections 4562, 4563, and 4564 of

this title, as provided in this section.

(2) Guidelines

The Secretary shall establish guidelines to measure the extent

of compliance with the housing goals, which may assign full

credit, partial credit, or no credit toward achievement of the

housing goals to different categories of mortgage purchase

activities of the enterprises, based on such criteria as the

Secretary deems appropriate.

(3) Extent of compliance

In determining compliance with the housing goals established

under this subpart, the Secretary -

(A) shall consider any single mortgage purchased by an

enterprise as contributing to the achievement of each housing

goal for which such mortgage purchase qualifies; and

(B) may take into consideration the number of housing units

financed by any mortgage on housing purchased by an enterprise.

(b) Notice and determination of failure to meet goals

(1) Notice

If the Secretary determines that an enterprise has failed, or

that there is a substantial probability that an enterprise will

fail, to meet any housing goal established under section 4562,

4563, or 4564 of this title, the Secretary shall provide written

notice to the enterprise of such a determination, the reasons for

such determination, the requirement to submit a housing plan

under subsection (c) of this section, and the information on

which the Secretary based the determination or imposed such

requirement.

(2) Response period

(A) In general

During the 30-day period beginning on the date that an

enterprise is provided notice under paragraph (1), the

enterprise may submit to the Secretary any written information

that the enterprise considers appropriate for consideration by

the Secretary in determining whether such failure has occurred

or whether the achievement of such goal was or is feasible.

(B) Extended period

The Secretary may extend the period under subparagraph (A)

for good cause for not more than 30 additional days.

(C) Shortened period

The Secretary may shorten the period under subparagraph (A)

for good cause.

(D) Failure to respond

The failure of an enterprise to provide information during

the 30-day period under this paragraph (as extended or

shortened) shall waive any right of the enterprise to comment

on the proposed determination or action of the Secretary.

(3) Consideration of information and determination

(A) In general

After the expiration of the response period under paragraph

(2) or upon receipt of information provided during such period

by the enterprise, whichever occurs earlier, the Secretary

shall determine (i) whether the enterprise has failed, or there

is a substantial probability that the enterprise will fail, to

meet the housing goal, and (ii) whether (taking into

consideration market and economic conditions and the financial

condition of the enterprise) the achievement of the housing

goal was or is feasible.

(B) Considerations

In making such determinations, the Secretary shall take into

consideration any relevant information submitted by the

enterprise during the response period.

(C) Notice

The Secretary shall provide written notice to the enterprise,

the Committee on Banking, Finance and Urban Affairs of the

House of Representatives, and the Committee on Banking,

Housing, and Urban Affairs of the Senate, of -

(i) each determination that an enterprise has failed, or

that there is a substantial probability that the enterprise

will fail, to meet a housing goal;

(ii) each determination that the achievement of a housing

goal was or is feasible; and

(iii) the reasons for each such determination.

Such notice shall respond to any information submitted during

the response period.

(c) Housing plans

(1) Requirement

If the Secretary finds pursuant to subsection (b) of this

section, that an enterprise has failed, or that there is a

substantial probability that an enterprise will fail, to meet any

housing goal established under section 4562, 4563, or 4564 of

this title, and that the achievement of the housing goal was or

is feasible, the Secretary shall require the enterprise to submit

a housing plan under this subsection for approval by the

Secretary.

(2) Contents

Each housing plan shall be a feasible plan describing the

specific actions the enterprise will take -

(A) to achieve the goal for the next calendar year; or

(B) if the Secretary determines that there is a substantial

probability that the enterprise will fail to meet a goal in the

current year, to make such improvements as are reasonable in

the remainder of such year.

The plan shall be sufficiently specific to enable the Secretary

to monitor compliance periodically.

(3) Deadline for submission

The Secretary shall, by regulation, establish a deadline for an

enterprise to submit a housing plan to the Secretary, which may

not be more than 45 days after the enterprise is provided notice

under subsection (b)(3) of this section that a housing plan is

required. The regulations shall provide that the Secretary may

extend the deadline to the extent that the Secretary determines

necessary. Any extension of the deadline shall be in writing and

for a time certain.

(4) Approval

The Secretary shall review each housing plan submitted under

this subsection and, not later than 30 days after submission of

the plan, approve or disapprove the plan. The Secretary may

extend the period for approval or disapproval for a single

additional 30-day period if the Secretary determines it

necessary. The Secretary shall approve any plan that the

Secretary determines is likely to succeed, and conforms with the

Federal National Mortgage Association Charter Act (12 U.S.C. 1716

et seq.) or the Federal Home Loan Mortgage Corporation Act (12

U.S.C. 1451 et seq.) (as applicable), this chapter, and any other

applicable laws and regulations.

(5) Notice of approval and disapproval

The Secretary shall provide written notice to any enterprise

submitting a housing 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.

(6) Resubmission

If the initial housing plan submitted by an enterprise is

disapproved, the enterprise shall submit an amended plan

acceptable to the Secretary within 30 days or such longer period

that the Secretary determines is in the public interest.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1336, Oct. 28, 1992, 106 Stat.

3962.)

-REFTEXT-

REFERENCES IN TEXT

The Federal National Mortgage Association Charter Act, referred

to in subsec. (c)(4), is title III of act June 27, 1934, ch. 847,

48 Stat. 1252, as amended, which is classified generally to

subchapter III (Sec. 1716 et seq.) of chapter 13 of this title.

For complete classification of this Act to the Code, see Short

Title note set out under section 1716 of this title and Tables.

The Federal Home Loan Mortgage Corporation Act, referred to in

subsec. (c)(4), is title III of Pub. L. 91-351, July 24, 1970, 84

Stat. 451, as amended, which is classified generally to chapter 11A

(Sec. 1451 et seq.) of this title. For complete classification of

this Act to the Code, see Short Title and Statement of Purpose note

set out under section 1451 of this title and Tables.

This chapter, referred to in subsec. (c)(4), 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 complete classification of title XIII to the Code,

see Short Title note set out under section 4501 of this title and

Tables.

-CHANGE-

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of

Representatives treated as referring to Committee 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 Congress. Committee on Banking and Financial Services of House

of Representatives abolished and replaced by Committee on Financial

Services of House of Representatives, and jurisdiction over matters

relating to securities and exchanges and insurance generally

transferred from Committee on Energy and Commerce of House of

Representatives by House Resolution No. 5, One Hundred Seventh

Congress, Jan. 3, 2001.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4562, 4563, 4564, 4581,

4585, 4631, 4636 of this title.

-CITE-

12 USC Sec. 4567 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 2 - housing goals

-HEAD-

Sec. 4567. Reports during transition

-STATUTE-

Each enterprise shall submit to the Secretary, the Committee on

Banking, Finance and Urban Affairs of the House of Representatives,

and the Committee on Banking, Housing, and Urban Affairs of the

Senate, a report for each transitional housing goal for the

enterprise under section 4562(d), 4563(d), or 4564(d) of this

title, describing the actions the enterprise plans to take to meet

such goal. Each such report shall be submitted within 45 days

after the establishment of the goal for which the report is

submitted.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1337, Oct. 28, 1992, 106 Stat.

3964.)

-CHANGE-

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of

Representatives treated as referring to Committee 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 Congress. Committee on Banking and Financial Services of House

of Representatives abolished and replaced by Committee on Financial

Services of House of Representatives, and jurisdiction over matters

relating to securities and exchanges and insurance generally

transferred from Committee on Energy and Commerce of House of

Representatives by House Resolution No. 5, One Hundred Seventh

Congress, Jan. 3, 2001.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4581, 4585, 4631, 4636 of

this title.

-CITE-

12 USC subpart 3 - enforcement of housing goals 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 3 - enforcement of housing goals

.

-HEAD-

subpart 3 - enforcement of housing goals

-CITE-

12 USC Sec. 4581 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 3 - enforcement of housing goals

-HEAD-

Sec. 4581. Cease-and-desist proceedings

-STATUTE-

(a) Grounds for issuance

The Secretary may issue and serve a notice of charges under this

section upon an enterprise if, in the determination of the

Secretary -

(1) the enterprise has failed to submit a housing plan that

substantially complies with section 4566(c) of this title within

the applicable period;

(2) the enterprise is engaging or has engaged, or the Secretary

has reasonable cause to believe that the enterprise is about to

engage, in any failure to make a good faith effort to comply with

a housing plan for the enterprise submitted and approved under

section 4566(c) of this title; or

(3) the enterprise has failed to submit the information

required under subsection (m) or (n) of section 1723a of this

title, subsection (e) or (f) of section 1456 of this title, or

section 4567 of this title.

(b) Procedure

(1) Notice of charges

Each notice of charges shall contain a statement of the facts

constituting the alleged conduct and shall fix a time and place

at which a hearing will be held to determine on the record

whether an order to cease and desist from such conduct should

issue.

(2) Issuance of order

If the Secretary finds on the record made at such hearing that

any conduct specified in the notice of charges has been

established (or the enterprise consents pursuant to section

4582(a)(4) of this title), the Secretary may issue and serve upon

the enterprise an order requiring the enterprise to (A) submit a

housing plan in compliance with section 4566(c) of this title,

(B) comply with the housing plan, or (C) provide the information

required under subsection (m) or (n) of section 1723a of this

title, subsection (e) or (f) of section 1456 of this title, or

section 4567 of this title.

(c) Effective date

An order under this section shall become effective upon the

expiration of the 30-day period beginning on the service of the

order upon the enterprise (except in the case of an order issued

upon consent, which shall become effective at the time specified

therein), and shall remain effective and enforceable as provided in

the order, except to the extent that the order is stayed, modified,

terminated, or set aside by action of the Secretary or otherwise,

as provided in this subpart.

(d) Transition period limitation

The Secretary may not impose any cease-and-desist order under

this section for any failure by an enterprise, during the 2-year

period beginning on the (FOOTNOTE 1) January 1, 1993, to comply

with an approved housing plan, unless the Secretary determines that

the enterprise has intentionally failed to make a good faith effort

to comply with the approved plan.

(FOOTNOTE 1) So in original.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1341, Oct. 28, 1992, 106 Stat.

3964.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4582, 4583, 4584 of this

title.

-CITE-

12 USC Sec. 4582 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 3 - enforcement of housing goals

-HEAD-

Sec. 4582. Hearings

-STATUTE-

(a) Requirements

(1) Venue and record

Any hearing under section 4581 or 4585 of this title shall be

held on the record and in the District of Columbia.

(2) Timing

Any such hearing shall be fixed for a date not earlier than 30

days nor later than 60 days after service of the notice of

charges under section 4581(b)(1) of this title or determination

to impose a penalty under section 4585(c)(1) of this title,

unless an earlier or a later date is set by the hearing officer

at the request of the enterprise served.

(3) Procedure

Any such hearing shall be conducted in accordance with chapter

5 of title 5.

(4) Failure to appear

If the enterprise served fails to appear at the hearing through

a duly authorized representative, such enterprise shall be deemed

to have consented to the issuance of the cease-and-desist order

or the imposition of the penalty for which the hearing is held.

(b) Issuance of order

(1) In general

After any such hearing, and within 90 days after the enterprise

has been notified that the case has been submitted to the

Secretary for final decision, the Secretary shall render the

decision (which shall include findings of fact upon which the

decision is predicated) and shall issue and serve upon the

enterprise an order or orders consistent with the provisions of

this subpart.

(2) Modification

Judicial review of any such order shall be exclusively as

provided in section 4583 of this title. Unless such a petition

for review is timely filed as provided in section 4583 of this

title, and thereafter until the record in the proceeding has been

filed as so provided, the Secretary may at any time, modify,

terminate, or set aside any such order, upon such notice and in

such manner as the Secretary considers proper. Upon such filing

of the record, the Secretary may modify, terminate, or set aside

any such order with permission of the court.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1342, Oct. 28, 1992, 106 Stat.

3965.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4581, 4583, 4585, 4586 of

this title.

-CITE-

12 USC Sec. 4583 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 3 - enforcement of housing goals

-HEAD-

Sec. 4583. Judicial review

-STATUTE-

(a) Commencement

An enterprise that is a party to a proceeding under section 4581

or 4585 of this title may obtain review of any final order issued

under such section by filing in the United States Court of Appeals

for the District of Columbia Circuit, within 30 days after the date

of service of such order, a written petition praying that the order

of the Secretary be modified, terminated, or set aside. The clerk

of the court shall transmit a copy of the petition to the

Secretary.

(b) Filing of record

Upon receiving a copy of a petition, the Secretary shall file in

the court the record in the proceeding, as provided in section 2112

of title 28.

(c) Jurisdiction

Upon the filing of a petition, such court shall have

jurisdiction, which upon the filing of the record by the Secretary

shall (except as provided in the last sentence of section

4582(b)(2) of this title) be exclusive, to affirm, modify,

terminate, or set aside, in whole or in part, the order of the

Secretary.

(d) Review

Review of such proceedings shall be governed by chapter 7 of

title 5.

(e) Order to pay penalty

Such court shall have the authority in any such review to order

payment of any penalty imposed by the Secretary under this subpart.

(f) No automatic stay

The commencement of proceedings for judicial review under this

section shall not, unless specifically ordered by the court,

operate as a stay of any order issued by the Secretary.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1343, Oct. 28, 1992, 106 Stat.

3966.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4582, 4585, 4586 of this

title.

-CITE-

12 USC Sec. 4584 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 3 - enforcement of housing goals

-HEAD-

Sec. 4584. Enforcement and jurisdiction

-STATUTE-

(a) Enforcement

The Secretary may request the Attorney General of the United

States to bring an action in the United States District Court for

the District of Columbia for the enforcement of any effective

notice or order issued under section 4581 or 4585 of this title.

Such court shall have jurisdiction and power to order and require

compliance herewith.

(b) Limitation on jurisdiction

Except as otherwise provided in this subpart, no court shall have

jurisdiction to affect, by injunction or otherwise, the issuance or

enforcement of any notice or order under section 4581 or 4585 of

this title, or to review, modify, suspend, terminate, or set aside

any such notice or order.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1344, Oct. 28, 1992, 106 Stat.

3966.)

-CITE-

12 USC Sec. 4585 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 3 - enforcement of housing goals

-HEAD-

Sec. 4585. Civil money penalties

-STATUTE-

(a) Authority

The Secretary may impose a civil money penalty, in accordance

with the provisions of this section, on any enterprise that has

failed -

(1) to submit a housing plan that substantially complies with

section 4566(c) of this title within the applicable period;

(2) to make a good faith effort to comply with a housing plan

for the enterprise submitted and approved under section 4566(c)

of this title; or

(3) to submit the information required under subsection (m) or

(n) of section 1723a of this title, subsection (e) or (f) of

section 1456 of this title, or section 4567 of this title.

(b) Amount of penalty

The amount of the penalty, as determined by the Secretary, may

not exceed -

(1) for any failure described in subsection (a)(1) of this

section, $25,000 for each day that the failure occurs; and

(2) for any failure described in subsection (a)(2) or (3) of

this section, $10,000 for each day that the failure occurs.

(c) Procedures

(1) Establishment

The Secretary shall establish standards and procedures

governing the imposition of civil money penalties under this

section. Such standards and procedures -

(A) shall provide for the Secretary to notify the enterprise

in writing of the Secretary's determination to impose the

penalty, which shall be made on the record;

(B) shall provide for the imposition of a penalty only after

the enterprise has been given an opportunity for a hearing on

the record pursuant to section 4582 of this title; and

(C) may provide for review by the Director for any

determination or order, or interlocutory ruling, arising from a

hearing.

(2) Factors in determining amount of penalty

In determining the amount of a penalty under this section, the

Secretary shall give consideration to such factors as the gravity

of the offense, any history of prior offenses, ability to pay the

penalty, injury to the public, benefits received, deterrence of

future violations, and such other factors as the Secretary may

determine, by regulation, to be appropriate.

(d) Action to collect penalty

If an enterprise fails to comply with an order by the Secretary

imposing a civil money penalty under this section, after the order

is no longer subject to review as provided by sections 4582 and

4583 of this title, the Secretary may request the Attorney General

of the United States to bring an action in the United States

District Court for the District of Columbia to obtain a monetary

judgment against the enterprise and such other relief as may be

available. The monetary judgment may, in the court's discretion,

include the attorneys fees and other expenses incurred by the

United States in connection with the action. In an action under

this subsection, the validity and appropriateness of the order

imposing the penalty shall not be subject to review.

(e) Settlement by Secretary

The Secretary may compromise, modify, or remit any civil money

penalty which may be, or has been, imposed under this section.

(f) Transition period limitation

The Secretary may not impose any civil money penalty under this

section for any failure by an enterprise, during the 2-year period

beginning on January 1, 1993, to comply with an approved housing

plan, unless the Secretary determines that the enterprise has

intentionally failed to make a good faith effort to comply with an

approved plan.

(g) Deposit of penalties

The Secretary shall deposit any civil money penalties collected

under this section into the general fund of the Treasury.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1345, Oct. 28, 1992, 106 Stat.

3966.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4582, 4583, 4584 of this

title.

-CITE-

12 USC Sec. 4586 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 3 - enforcement of housing goals

-HEAD-

Sec. 4586. Public disclosure of final orders and agreements

-STATUTE-

(a) In general

The Secretary shall make available to the public -

(1) any written agreement or other written statement for which

a violation may be redressed by the Secretary or any modification

to or termination thereof, unless the Secretary, in the

Secretary's discretion, determines that public disclosure would

be contrary to the public interest or determines under subsection

(c) of this section that public disclosure would seriously

threaten the financial health or security of the enterprise;

(2) any order that is issued with respect to any administrative

enforcement proceeding initiated by the Secretary under this

subpart and that has become final in accordance with sections

4582 and 4583 of this title; and

(3) any modification to or termination of any final order made

public pursuant to this subsection.

(b) Hearings

All hearings with respect to any notice of charges issued by the

Secretary shall be open to the public, unless the Secretary, in the

Secretary's discretion, determines that holding an open hearing

would be contrary to the public interest.

(c) Delay of public disclosure under exceptional circumstances

If the Secretary makes a determination in writing that the public

disclosure of any final order pursuant to subsection (a) of this

section would seriously threaten the financial soundness of the

enterprise, the Secretary may delay the public disclosure of such

order for a reasonable time.

(d) Documents filed under seal in public enforcement hearings

The Secretary may file any document or part thereof under seal in

any hearing under this subpart if the Secretary determines in

writing that disclosure thereof would be contrary to the public

interest.

(e) Retention of documents

The Secretary shall keep and maintain a record, for not less than

6 years, of all documents described in subsection (a) of this

section and all enforcement agreements and other supervisory

actions and supporting documents issued with respect to or in

connection with any enforcement proceeding initiated by the

Secretary under this subpart.

(f) Disclosures to Congress

This section may not be construed to authorize the withholding,

or to prohibit the disclosure, of any information to the Congress

or any committee or subcommittee thereof.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1346, Oct. 28, 1992, 106 Stat.

3968.)

-CITE-

12 USC Sec. 4587 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 3 - enforcement of housing goals

-HEAD-

Sec. 4587. Notice of service

-STATUTE-

Any service required or authorized to be made by the Secretary

under this subpart may be made by registered mail or in such other

manner reasonably calculated to give actual notice, as the

Secretary may by regulation or otherwise provide.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1347, Oct. 28, 1992, 106 Stat.

3968.)

-CITE-

12 USC Sec. 4588 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 3 - enforcement of housing goals

-HEAD-

Sec. 4588. Subpoena authority

-STATUTE-

(a) In general

In the course of or in connection with any administrative

proceeding under this subpart, the Secretary shall have the

authority -

(1) to administer oaths and affirmations;

(2) to take and preserve testimony under oath;

(3) to issue subpoenas and subpoenas duces tecum; and

(4) to revoke, quash, or modify subpoenas and subpoenas duces

tecum issued by the Secretary.

(b) Witnesses and documents

The attendance of witnesses and the production of documents

provided for in this section may be required from any place in any

State at any designated place where such proceeding is being

conducted.

(c) Enforcement

The Secretary may request the Attorney General of the United

States to bring an action in the United States district court for

the judicial district in which such proceeding is being conducted,

or where the witness resides or conducts business, or the United

States District Court for the District of Columbia, for enforcement

of any subpoena or subpoena duces tecum issued pursuant to this

section. Such courts shall have jurisdiction and power to order

and require compliance therewith.

(d) Fees and expenses

Witnesses subpoenaed under this section shall be paid the same

fees and mileage that are paid witnesses in the district courts of

the United States. Any court having jurisdiction of any proceeding

instituted under this section by an enterprise may allow to any

such party such reasonable expenses and attorneys fees as the court

deems just and proper. Such expenses and fees shall be paid by the

enterprise or from its assets.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1348, Oct. 28, 1992, 106 Stat.

3968.)

-CITE-

12 USC Sec. 4589 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part B - Authority of Secretary

subpart 3 - enforcement of housing goals

-HEAD-

Sec. 4589. Regulations

-STATUTE-

The Secretary shall issue any final regulations necessary to

implement the provisions of this part (not including the provisions

of sections 4562(d), 4563(d), and 4564(d) of this title, relating

to transition housing goals) not later than the expiration of the

18-month period beginning on October 28, 1992. Such regulations

shall be issued after notice and opportunity for public comment

pursuant to the provisions of section 553 of title 5.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1349, Oct. 28, 1992, 106 Stat.

3969.)

-CITE-

12 USC Part C - Miscellaneous Provisions 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part C - Miscellaneous Provisions

.

-HEAD-

Part C - Miscellaneous Provisions

-CITE-

12 USC Sec. 4601 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part C - Miscellaneous Provisions

-HEAD-

Sec. 4601. Review of underwriting guidelines

-STATUTE-

(a) Study

Each of the enterprises shall conduct a study to review the

underwriting guidelines of the enterprise. The studies shall

examine -

(1) the extent to which the underwriting guidelines prevent or

inhibit the purchase or securitization of mortgages for housing

located in mixed-use, urban center, and predominantly minority

neighborhoods and for housing for low- and moderate-income

families;

(2) the standards employed by private mortgage insurers and the

extent to which such standards inhibit the purchase and

securitization by the enterprises of mortgages described in

paragraph (1); and

(3) the implications of implementing underwriting standards

that -

(A) establish a downpayment requirement for mortgagors of 5

percent or less;

(B) allow the use of cash on hand as a source for

downpayments; and

(C) approve borrowers who have a credit history of

delinquencies if the borrower can demonstrate a satisfactory

credit history for at least the 12-month period ending on the

date of the application for the mortgage.

(b) Report

Not later than the expiration of the 1-year period beginning on

October 28, 1992, each enterprise shall submit to the Secretary,

the Committee on Banking, Finance and Urban Affairs of the House of

Representatives, and the Committee on Banking, Housing, and Urban

Affairs of the Senate a report regarding the study conducted by the

enterprise under subsection (a) of this section. Each report shall

include any recommendations of the enterprise for better meeting

the housing needs of low- and moderate-income families.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1354, Oct. 28, 1992, 106 Stat.

3970.)

-CHANGE-

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of

Representatives treated as referring to Committee 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 Congress. Committee on Banking and Financial Services of House

of Representatives abolished and replaced by Committee on Financial

Services of House of Representatives, and jurisdiction over matters

relating to securities and exchanges and insurance generally

transferred from Committee on Energy and Commerce of House of

Representatives by House Resolution No. 5, One Hundred Seventh

Congress, Jan. 3, 2001.

-CITE-

12 USC Sec. 4602 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part C - Miscellaneous Provisions

-HEAD-

Sec. 4602. Studies of effects of privatization of FNMA and FHLMC

-STATUTE-

(a) In general

The Comptroller General of the United States, the Secretary of

Housing and Urban Development, the Secretary of the Treasury, and

the Director of the Congressional Budget Office shall each conduct

and submit to the Committee on Banking, Finance and Urban Affairs

of the House of Representatives and the Committee on Banking,

Housing, and Urban Affairs of the Senate, not later than the

expiration of the 2-year period beginning on October 28, 1992, a

study regarding the desirability and feasibility of repealing the

Federal charters of the Federal National Mortgage Association and

the Federal Home Loan Mortgage Corporation, eliminating any Federal

sponsorship of the enterprises, and allowing the enterprises to

continue to operate as fully private entities.

(b) Requirements

Each study shall particularly examine the effects of such

privatization on -

(1) the requirements applicable to the Federal National

Mortgage Association and the Federal Home Loan Mortgage

Corporation under Federal law and the costs to the enterprises;

(2) the cost of capital to the enterprises;

(3) housing affordability and availability and the cost of

homeownership;

(4) the level of secondary mortgage market competition

subsequently available in the private sector;

(5) whether increased amounts of capital would be necessary for

the enterprises to continue operation;

(6) the secondary market for residential loans and the

liquidity of such loans; and

(7) any other factors that the Comptroller General, the

Secretary of Housing and Urban Development, the Secretary of the

Treasury, or the Director of the Congressional Budget Office

deems appropriate to enable the Congress to evaluate the

desirability and feasibility of privatization of the enterprises.

(c) Information

The Federal National Mortgage Association and the Federal Home

Loan Mortgage Corporation shall provide full and prompt access to

the Comptroller General, the Secretary of Housing and Urban

Development, the Secretary of the Treasury, and the Director of the

Congressional Budget Office to any books, records, and other

information requested for the purposes of conducting the studies

under this section.

(d) Views of FNMA and FHLMC

(1) Consideration in studies

In conducting the studies under this section, the Comptroller

General, the Secretary of Housing and Urban Development, the

Secretary of the Treasury, and the Director of the Congressional

Budget Office shall each consider the views of the Federal

National Mortgage Association and the Federal Home Loan Mortgage

Corporation.

(2) Direct report

The Federal National Mortgage Association and the Federal Home

Loan Mortgage Corporation may each report directly to the

Committee on Banking, Finance and Urban Affairs of the House of

Representatives and the Committee on Banking, Housing, and Urban

Affairs of the Senate on its own analysis of the desirability and

feasibility of repealing the Federal charters of the enterprises,

eliminating any Federal sponsorship, and allowing the enterprises

to continue to operate as fully private entities.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1355, Oct. 28, 1992, 106 Stat.

3970.)

-CHANGE-

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of

Representatives treated as referring to Committee 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 Congress. Committee on Banking and Financial Services of House

of Representatives abolished and replaced by Committee on Financial

Services of House of Representatives, and jurisdiction over matters

relating to securities and exchanges and insurance generally

transferred from Committee on Energy and Commerce of House of

Representatives by House Resolution No. 5, One Hundred Seventh

Congress, Jan. 3, 2001.

-CITE-

12 USC Sec. 4603 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER I - SUPERVISION AND REGULATION OF ENTERPRISES

Part C - Miscellaneous Provisions

-HEAD-

Sec. 4603. Transition

-STATUTE-

Before the expiration of the period ending 18 months after the

appointment of the Director under section 4512 of this title, any

rules and regulations promulgated before October 28, 1992, by the

Secretary pursuant to the Federal National Mortgage Association

Charter Act (12 U.S.C. 1716 et seq.) or the Federal Home Loan

Mortgage Corporation Act (12 U.S.C. 1451 et seq.) shall remain in

effect unless modified, terminated, superseded, or revoked by

operation of law or in accordance with law. Such rules and

regulations shall terminate, effective upon the expiration of such

period.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1356, Oct. 28, 1992, 106 Stat.

3971.)

-REFTEXT-

REFERENCES IN TEXT

The Federal National Mortgage Association Charter Act, referred

to in text, is title III of act June 27, 1934, ch. 847, 48 Stat.

1252, as amended, which is classified generally to subchapter III

(Sec. 1716 et seq.) of chapter 13 of this title. For complete

classification of this Act to the Code, see Short Title note set

out under section 1716 of this title and Tables.

The Federal Home Loan Mortgage Corporation Act, referred to in

text, is title III of Pub. L. 91-351, July 24, 1970, 84 Stat. 451,

as amended, which is classified generally to chapter 11A (Sec. 1451

et seq.) of this title. For complete classification of this Act to

the Code, see Short Title and Statement of Purpose note set out

under section 1451 of this title and Tables.

-CITE-

12 USC SUBCHAPTER II - REQUIRED CAPITAL LEVELS FOR

ENTERPRISES AND SPECIAL ENFORCEMENT POWERS 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER II - REQUIRED CAPITAL LEVELS FOR ENTERPRISES AND SPECIAL

ENFORCEMENT POWERS

.

-HEAD-

SUBCHAPTER II - REQUIRED CAPITAL LEVELS FOR ENTERPRISES AND SPECIAL

ENFORCEMENT POWERS

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 4513, 4516, 4631, 4635

of this title.

-CITE-

12 USC Sec. 4611 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER II - REQUIRED CAPITAL LEVELS FOR ENTERPRISES AND SPECIAL

ENFORCEMENT POWERS

-HEAD-

Sec. 4611. Risk-based capital levels

-STATUTE-

(a) Risk-based capital test

The Director shall, by regulation, establish a risk-based capital

test under this section for the enterprises. When applied to an

enterprise, the risk-based capital test shall determine the amount

of total capital for the enterprise that is sufficient for the

enterprise to maintain positive capital during a 10-year period in

which the following circumstances occur (in this section referred

to as the ''stress period''):

(1) Credit risk

With respect to mortgages owned or guaranteed by the enterprise

and other obligations of the enterprise, losses occur throughout

the United States at a rate of default and severity (based on any

measurements of default reasonably related to prevailing practice

for that industry in determining capital adequacy) reasonably

related to the rate and severity that occurred in contiguous

areas of the United States containing an aggregate of not less

than 5 percent of the total population of the United States that,

for a period of not less than 2 years, experienced the highest

rates of default and severity of mortgage losses, in comparison

with such rates of default and severity of mortgage losses in

other such areas for any period of such duration.

(2) Interest rate risk

(A) In general

Interest rates decrease as described in subparagraph (B) or

increase as described in subparagraph (C), whichever would

require more capital for the enterprise.

(B) Decreases

The 10-year constant maturity Treasury yield decreases during

the first year of the stress period and will remain at the new

level for the remainder of the stress period. The yield

decreases to the lesser of -

(i) 600 basis points below the average yield during the

preceding 9 months, or

(ii) 60 percent of the average yield during the preceding 3

years,

but in no case to a yield less than 50 percent of the average

yield during the preceding 9 months.

(C) Increases

The 10-year constant maturity Treasury yield increases during

the first year of the stress period and will remain at the new

level for the remainder of the stress period. The yield

increases to the greater of -

(i) 600 basis points above the average yield during the

preceding 9 months, or

(ii) 160 percent of the average yield during the preceding

3 years,

but in no case to a yield greater than 175 percent of the

average yield during the preceding 9 months.

(D) Different terms to maturity

Yields of Treasury instruments with other terms to maturity

will change relative to the 10-year constant maturity Treasury

yield in patterns and for durations that are reasonably related

to historical experience and are judged reasonable by the

Director.

(E) Large increases in yields

If the 10-year constant maturity Treasury yield is assumed to

increase by more than 50 percent over the average yield during

the preceding 9 months, the Director shall adjust the losses in

paragraphs (1) and (3) to reflect a correspondingly higher rate

of general price inflation.

(3) New business

(A) In general

Any contractual commitments of the enterprise to purchase

mortgages or issue securities will be fulfilled. The

characteristics of resulting mortgage purchases, securities

issued, and other financing will be consistent with the

contractual terms of such commitments, recent experience, and

the economic characteristics of the stress period. No other

purchases of mortgages shall be assumed, except as provided in

subparagraph (B).

(B) Additional new business

The Director may, after consideration of each of the studies

required by subparagraph (C), assume that the enterprise

conducts additional new business during the stress period

consistent with the following -

(i) Amount and product types

The amount and types of mortgages purchased and their

financing will be reasonably related to recent experience and

the economic characteristics of the stress period.

(ii) Losses

Default and loss severity characteristics of mortgages

purchased will be reasonably related to historical

experience.

(iii) Pricing

Prices charged by the enterprise in purchasing new

mortgages will be reasonably related to recent experience and

the economic characteristics of the stress period. The

Director may assume that a reasonable period of time would

lapse before the enterprise would recognize and react to the

characteristics of the stress period.

(iv) Interest rate risk

Interest rate risk on new mortgages purchased will occur to

an extent reasonably related to historical experience.

(v) Reserves

The enterprise must maintain reserves during and at the end

of the stress period on new business conducted during the

first 5 years of the stress period reasonably related to the

expected future losses on such business, consistent with

generally accepted accounting principles and industry

accounting practice.

(C) Studies

Within 1 year after regulations are first issued under

subsection (e) of this section, the Director of the

Congressional Budget Office, and the Comptroller General of the

United States shall each submit to the Committee on Banking,

Housing, and Urban Affairs of the Senate and the Committee on

Banking, Finance and Urban Affairs of the House of

Representatives a study of the advisability and appropriate

form of any new business assumptions under subparagraph (B).

(D) Effective date

The provisions of subparagraph (B) shall become effective 4

years after regulations are first issued under subsection (e)

of this section.

(4) Other activities

Losses or gains on other activities, including interest rate

and foreign exchange hedging activities, shall be determined by

the Director, on the basis of available information, to be

consistent with the stress period.

(b) Considerations

(1) In general

In establishing the risk-based capital test under subsection

(a) of this section, the Director shall take into account

appropriate distinctions among types of mortgage products,

differences in seasoning of mortgages, and any other factors the

Director considers appropriate.

(2) Consistency

Characteristics of the stress period other than those

specifically set forth in subsection (a) of this section, such as

prepayment experience and dividend policies, will be those

determined by the Director, on the basis of available

information, to be most consistent with the stress period.

(c) Risk-based capital level

For purposes of this subchapter, the risk-based capital level for

an enterprise shall be equal to the sum of the following amounts:

(1) Credit and interest rate risk

The amount of total capital determined by applying the

risk-based capital test under subsection (a) of this section to

the enterprise.

(2) Management and operations risk

To provide for management and operations risk, 30 percent of

the amount of total capital determined by applying the risk-based

capital test under subsection (a) of this section to the

enterprise.

(d) Definitions

For purposes of this section:

(1) Seasoning

The term ''seasoning'' means the change over time in the ratio

of the unpaid principal balance of a mortgage to the value of the

property by which such mortgage loan is secured, determined on an

annual basis by region, in accordance with the Constant Quality

Home Price Index published by the Secretary of Commerce (or any

index of similar quality, authority, and public availability that

is regularly used by the Federal Government).

(2) Type of mortgage product

The term ''type of mortgage product'' means a classification of

one or more mortgage products, as established by the Director,

which have similar characteristics from each set of

characteristics under the following subparagraphs:

(A) The property securing the mortgage is -

(i) a residential property consisting of 1 to 4 dwelling

units; or

(ii) a residential property consisting of more than 4

dwelling units.

(B) The interest rate on the mortgage is -

(i) fixed; or

(ii) adjustable.

(C) The priority of the lien securing the mortgage is -

(i) first; or

(ii) second or other.

(D) The term of the mortgage is -

(i) 1 to 15 years;

(ii) 16 to 30 years; or

(iii) more than 30 years.

(E) The owner of the property is -

(i) an owner-occupant; or

(ii) an investor.

(F) The unpaid principal balance of the mortgage -

(i) will amortize completely over the term of the mortgage

and will not increase significantly at any time during the

term of the mortgage;

(ii) will not amortize completely over the term of the

mortgage and will not increase significantly at any time

during the term of the mortgage; or

(iii) may increase significantly at some time during the

term of the mortgage.

(G) Any other characteristics of the mortgage, as the

Director may determine.

(e) Regulations

(1) Issuance

The Director shall issue final regulations establishing the

risk-based capital test under this section not later than the

expiration of the 18-month period beginning on the date of the

appointment of the Director. Such regulations shall be issued

after notice and opportunity for public comment pursuant to the

provisions of section 553 of title 5 and shall take effect upon

issuance.

(2) Contents

The regulations under this subsection shall contain specific

requirements, definitions, methods, variables, and parameters

used under the risk-based capital test and in implementing the

test (such as loan loss severity, float income, loan-to-value

ratios, taxes, yield curve slopes, default experience, and

prepayment rates). The regulations shall be sufficiently

specific to permit an individual other than the Director to apply

the test in the same manner as the Director.

(3) Confidentiality of information

Any person that receives any book, record, or information from

the Director or an enterprise to enable the risk-based capital

test to be applied shall -

(A) maintain the confidentiality of the book, record, or

information in a manner that is generally consistent with the

level of confidentiality established for the material by the

Director or the enterprise; and

(B) be exempt from section 552 of title 5 with respect to the

book, record, or information.

(f) Availability of model

The Director shall provide copies of the statistical model or

models used to implement the risk-based capital test under this

section to the Secretary, the Board of Governors of the Federal

Reserve System, the Director of the Office of Management and

Budget, the Comptroller General of the United States, and the

Director of the Congressional Budget Office. The Director shall

make copies of such model or models available for public

acquisition and may charge a reasonable fee for such copies.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1361, Oct. 28, 1992, 106 Stat.

3972.)

-CHANGE-

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of

Representatives treated as referring to Committee 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 Congress. Committee on Banking and Financial Services of House

of Representatives abolished and replaced by Committee on Financial

Services of House of Representatives, and jurisdiction over matters

relating to securities and exchanges and insurance generally

transferred from Committee on Energy and Commerce of House of

Representatives by House Resolution No. 5, One Hundred Seventh

Congress, Jan. 3, 2001.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1426, 1452, 1718, 4542,

4614, 4615 of this title.

-CITE-

12 USC Sec. 4612 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER II - REQUIRED CAPITAL LEVELS FOR ENTERPRISES AND SPECIAL

ENFORCEMENT POWERS

-HEAD-

Sec. 4612. Minimum capital levels

-STATUTE-

(a) In general

For purposes of this subchapter, the minimum capital level for

each enterprise shall be the sum of -

(1) 2.50 percent of the aggregate on-balance sheet assets of

the enterprise, as determined in accordance with generally

accepted accounting principles;

(2) 0.45 percent of the unpaid principal balance of outstanding

mortgage-backed securities and substantially equivalent

instruments issued or guaranteed by the enterprise that are not

included in paragraph (1); and

(3) 0.45 percent of other off-balance sheet obligations of the

enterprise not included in paragraph (2) (excluding commitments

in excess of 50 percent of the average dollar amount of the

commitments outstanding each quarter over the preceding 4

quarters), except that the Director shall adjust such percentage

to reflect differences in the credit risk of such obligations in

relation to the instruments included in paragraph (2).

(b) Transition

Notwithstanding subsection (a) of this section, during the

18-month period beginning upon October 28, 1992, the minimum

capital level for each enterprise shall be the sum of -

(1) 2.25 percent of the aggregate on-balance sheet assets of

the enterprise, as determined in accordance with generally

accepted accounting principles;

(2) 0.40 percent of the unpaid principal balance of outstanding

mortgage-backed securities and substantially equivalent

instruments issued or guaranteed by the enterprise that are not

included in paragraph (1); and

(3) 0.40 percent of other off-balance sheet obligations of the

enterprise not included in paragraph (2) (excluding commitments

in excess of 50 percent of the average dollar amount of the

commitments outstanding each quarter over the preceding 4

quarters), except that the Director shall adjust such percentage

to reflect differences in the credit risk of such obligations in

relation to the instruments included in paragraph (2).

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1362, Oct. 28, 1992, 106 Stat.

3975.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1452, 1718, 4614, 4616,

4619 of this title.

-CITE-

12 USC Sec. 4613 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER II - REQUIRED CAPITAL LEVELS FOR ENTERPRISES AND SPECIAL

ENFORCEMENT POWERS

-HEAD-

Sec. 4613. Critical capital levels

-STATUTE-

For purposes of this subchapter, the critical capital level for

each enterprise shall be the sum of -

(1) 1.25 percent of the aggregate on-balance sheet assets of

the enterprise, as determined in accordance with generally

accepted accounting principles;

(2) 0.25 percent of the unpaid principal balance of outstanding

mortgage-backed securities and substantially equivalent

instruments issued or guaranteed by the enterprise that are not

included in paragraph (1); and

(3) 0.25 percent of other off-balance sheet obligations of the

enterprise not included in paragraph (2) (excluding commitments

in excess of 50 percent of the average dollar amount of the

commitments outstanding each quarter over the preceding 4

quarters), except that the Director shall adjust such percentage

to reflect differences in the credit risk of such obligations in

relation to the instruments included in paragraph (2).

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1363, Oct. 28, 1992, 106 Stat.

3976.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4614 of this title.

-CITE-

12 USC Sec. 4614 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER II - REQUIRED CAPITAL LEVELS FOR ENTERPRISES AND SPECIAL

ENFORCEMENT POWERS

-HEAD-

Sec. 4614. Capital classifications

-STATUTE-

(a) In general

For purposes of this subchapter, the Director shall classify the

enterprises according to the following capital classifications:

(1) Adequately capitalized

An enterprise shall be classified as adequately capitalized if

the enterprise -

(A) maintains an amount of total capital that is equal to or

exceeds the risk-based capital level established for the

enterprise under section 4611 of this title; and

(B) maintains an amount of core capital that is equal to or

exceeds the minimum capital level established for the

enterprise under section 4612 of this title.

(2) Undercapitalized

An enterprise shall be classified as undercapitalized if -

(A) the enterprise -

(i) does not maintain an amount of total capital that is

equal to or exceeds the risk-based capital level established

for the enterprise; and

(ii) maintains an amount of core capital that is equal to

or exceeds the minimum capital level established for the

enterprise; or

(B) the enterprise is otherwise classified as

undercapitalized under subsection (b)(1) of this section.

(3) Significantly undercapitalized

An enterprise shall be classified as significantly

undercapitalized if -

(A) the enterprise -

(i) does not maintain an amount of total capital that is

equal to or exceeds the risk-based capital level established

for the enterprise;

(ii) does not maintain an amount of core capital that is

equal to or exceeds the minimum capital level established for

the enterprise; and

(iii) maintains an amount of core capital that is equal to

or exceeds the critical capital level established for the

enterprise under section 4613 of this title; or

(B) the enterprise is otherwise classified as significantly

undercapitalized under subsection (b)(2) of this section or

section 4615(b) of this title.

(4) Critically undercapitalized

An enterprise shall be classified as critically

undercapitalized if -

(A) the enterprise -

(i) does not maintain an amount of total capital that is

equal to or exceeds the risk-based capital level established

for the enterprise; and

(ii) does not maintain an amount of core capital that is

equal to or exceeds the critical capital level for the

enterprise; or

(B) is otherwise classified as critically undercapitalized

under subsection (b)(3) of this section or section 4616(b)(5)

of this title.

(b) Discretionary classification

If at any time the Director determines in writing that an

enterprise is engaging in conduct not approved by the Director that

could result in a rapid depletion of core capital or that the value

of the property subject to mortgages held or securitized by the

enterprise has decreased significantly, the Director may classify

the enterprise -

(1) as undercapitalized, if the enterprise is otherwise

classified as adequately capitalized;

(2) as significantly undercapitalized, if the enterprise is

otherwise classified as undercapitalized; and

(3) as critically undercapitalized, if the enterprise is

otherwise classified as significantly undercapitalized.

(c) Quarterly determination

The Director shall determine the capital classification of the

enterprises for purposes of this subchapter on not less than a

quarterly basis (and as appropriate under subsection (b) of this

section). The first such determination shall be made during the

3-month period beginning on the appointment of the Director.

(d) Implementation

Notwithstanding any other provision of this section, during the

period beginning on October 28, 1992, and ending upon the effective

date of section 4615 of this title (as provided in section 4615(c)

of this title), an enterprise shall be classified as adequately

capitalized if the enterprise maintains an amount of core capital

that is equal to or exceeds the minimum capital level for the

enterprise under section 4612 of this title.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1364, Oct. 28, 1992, 106 Stat.

3976.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4616, 4617, 4618, 4623 of

this title.

-CITE-

12 USC Sec. 4615 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER II - REQUIRED CAPITAL LEVELS FOR ENTERPRISES AND SPECIAL

ENFORCEMENT POWERS

-HEAD-

Sec. 4615. Supervisory actions applicable to undercapitalized

enterprises

-STATUTE-

(a) Mandatory actions

(1) Capital restoration plan

An enterprise that is classified as undercapitalized shall,

within the time period provided in section 4622(b) and (d) of

this title, submit to the Director a capital restoration plan

that complies with section 4622 of this title and carry out the

plan after approval.

(2) Restriction on capital distributions

An enterprise that is classified as undercapitalized may not

make any capital distribution that would result in the enterprise

being reclassified as significantly undercapitalized or

critically undercapitalized.

(b) Discretionary reclassification from undercapitalized to

significantly undercapitalized

The Director may reclassify as significantly undercapitalized an

enterprise that is classified as undercapitalized (and the

enterprise shall be subject to the provisions of section 4616 of

this title) if -

(1) the enterprise does not submit a capital restoration plan

that is substantially in compliance with section 4622 of this

title within the applicable period or the Director does not

approve the capital restoration plan submitted by the enterprise;

or

(2) the Director determines that the enterprise has failed to

make, in good faith, reasonable efforts necessary to comply with

the capital restoration plan and fulfill the schedule for the

plan approved by the Director.

(c) Effective date

This section shall take effect upon the expiration of the 1-year

period beginning on the date of the effectiveness of the

regulations issued under section 4611(e) of this title establishing

the risk-based capital test.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1365, Oct. 28, 1992, 106 Stat.

3978.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4614, 4617, 4618, 4636 of

this title.

-CITE-

12 USC Sec. 4616 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER II - REQUIRED CAPITAL LEVELS FOR ENTERPRISES AND SPECIAL

ENFORCEMENT POWERS

-HEAD-

Sec. 4616. Supervisory actions applicable to significantly

undercapitalized enterprises

-STATUTE-

(a) Mandatory supervisory actions

(1) Capital restoration plan

An enterprise that is classified as significantly

undercapitalized shall, within the time period under section

4622(b) and (d) of this title, submit to the Director a capital

restoration plan that complies with section 4622 of this title

and carry out the plan after approval.

(2) Restrictions on capital distributions

(A) Prior approval

An enterprise that is classified as significantly

undercapitalized may not make any capital distribution that

would result in the enterprise being reclassified as critically

undercapitalized. An enterprise that is classified as

significantly undercapitalized enterprise (FOOTNOTE 1) may not

make any other capital distribution unless the Director

approves the distribution.

(FOOTNOTE 1) So in original. The word ''enterprise'' probably

should not appear.

(B) Standard for approval

The Director may approve a capital distribution by an

enterprise classified as significantly undercapitalized only if

the Director determines that the distribution (i) will enhance

the ability of the enterprise to meet the risk-based capital

level and the minimum capital level for the enterprise

promptly, (ii) will contribute to the long-term financial

safety and soundness of the enterprise, or (iii) is otherwise

in the public interest.

(b) Discretionary supervisory actions

In addition to any other actions taken by the Director (including

actions under subsection (a) of this section), the Director may, at

any time, take any of the following actions with respect to an

enterprise that is classified as significantly undercapitalized:

(1) Limitation on increase in obligations

Limit any increase in, or order the reduction of, any

obligations of the enterprise, including off-balance sheet

obligations.

(2) Limitation on growth

Limit or prohibit the growth of the assets of the enterprise or

require contraction of the assets of the enterprise.

(3) Acquisition of new capital

Require the enterprise to acquire new capital in a form and

amount determined by the Director.

(4) Restriction of activities

Require the enterprise to terminate, reduce, or modify any

activity that the Director determines creates excessive risk to

the enterprise.

(5) Reclassification from significantly to critically

undercapitalized

The Director may reclassify as critically undercapitalized an

enterprise that is classified as significantly undercapitalized

(and the enterprise shall be subject to the provisions of section

4617 of this title) if -

(A) the enterprise does not submit a capital restoration plan

that is substantially in compliance with section 4622 of this

title within the applicable period or the Director does not

approve the capital restoration plan submitted by the

enterprise; or

(B) the Director determines that the enterprise has failed to

make, in good faith, reasonable efforts necessary to comply

with the capital restoration plan and fulfill the schedule for

the plan approved by the Director.

(6) Conservatorship

Appoint a conservator for the enterprise in accordance with the

provisions of section 4619 of this title (excluding subsection

(a)(1) and (2)), but only if the Director determines -

(A) that the amount of core capital of the enterprise is less

than the minimum capital level established for the enterprise

under section 4612 of this title; and

(B) that alternative remedies available to the Director under

this chapter are not satisfactory.

(c) Effective date

This section shall take effect upon the first classification of

the enterprises within capital classifications that occurs under

section 4614 of this title.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1366, Oct. 28, 1992, 106 Stat.

3978.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in subsec. (b)(6)(B), 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 complete classification of title XIII to the

Code, see Short Title note set out under section 4501 of this title

and Tables.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4614, 4615, 4617, 4618,

4619, 4620, 4623, 4636 of this title.

-CITE-

12 USC Sec. 4617 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER II - REQUIRED CAPITAL LEVELS FOR ENTERPRISES AND SPECIAL

ENFORCEMENT POWERS

-HEAD-

Sec. 4617. Appointment of conservators for critically

undercapitalized enterprises

-STATUTE-

(a) Appointment

(1) In general

Upon a determination and notice under section 4618(d) of this

title that an enterprise is critically undercapitalized and not

later than 30 days after providing notice under section

4619(a)(3) of this title, the Director shall appoint a

conservator for the enterprise in accordance with the provisions

of section 4619 of this title (excluding subsections (FOOTNOTE 1)

(a)(1) and (2)).

(FOOTNOTE 1) So in original. Probably should be ''subsection''.

(2) Exception

Notwithstanding paragraph (1), the Director may determine not

to appoint a conservator for an enterprise classified as

critically undercapitalized, but only pursuant to a written

finding by the Director, with the written concurrence of the

Secretary of the Treasury, that -

(A) the appointment of a conservator would have serious

adverse effects on economic conditions of national financial

markets or on the financial stability of the housing finance

market; and

(B) the public interest would be better served by taking some

other enforcement action authorized under this chapter.

(b) Authority

The Director shall have the authority to take any actions under

sections 4615 and 4616 of this title with respect to an enterprise

under conservatorship.

(c) Approval of activities

(1) Conservator

The conservator of any enterprise classified as critically

undercapitalized may undertake an activity subject to the

approval of the Secretary under section 4542 of this title only

with the additional approval of the Director.

(2) No conservator

If the Director determines under subsection (a)(2) of this

section not to appoint a conservator for an enterprise classified

as critically undercapitalized, the provisions of section 4616 of

this title shall apply with respect to the enterprise.

(d) Effective date

This section shall take effect upon the first classification of

the enterprises within capital classifications that occurs under

section 4614 of this title.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1367, Oct. 28, 1992, 106 Stat.

3980.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in subsec. (a)(2)(B), 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 complete classification of title XIII to the

Code, see Short Title note set out under section 4501 of this title

and Tables.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4616, 4619, 4620, 4623 of

this title.

-CITE-

12 USC Sec. 4618 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER II - REQUIRED CAPITAL LEVELS FOR ENTERPRISES AND SPECIAL

ENFORCEMENT POWERS

-HEAD-

Sec. 4618. Notice of classification and enforcement action

-STATUTE-

(a) Notice

Before taking any action referred to in subsection (b) of this

section, the Director shall provide to the enterprise written

notice of the proposed action, which states the reasons for the

proposed action and the information on which the proposed action is

based.

(b) Applicability

The requirements of subsection (a) of this section shall apply to

the following actions:

(1) Classification or reclassification of an enterprise within

a particular capital classification under section 4614 of this

title.

(2) Any discretionary supervisory action pursuant to section

4615 of this title.

(3) Any discretionary supervisory action pursuant to section

4616 of this title except a decision to appoint a conservator

under section 4616(b)(6) 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) of this section.

(c) Response period

(1) In general

During the 30-day period beginning on the date that an

enterprise is provided notice under subsection (a) of this

section of a proposed action, the enterprise may submit to the

Director any information relevant to the action that the

enterprise 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 enterprise so

requires or the enterprise consents.

(4) Failure to respond

The failure of an enterprise to provide information during the

response period under this subsection (as extended or shortened)

shall waive any right of the enterprise to comment on the

proposed action of the Director.

(d) Consideration of information and determination

After the expiration of the response period under subsection (c)

of this section or upon receipt of information provided during such

period by the enterprise, whichever occurs earlier, the Director

shall determine whether to take the action proposed, taking into

consideration any relevant information submitted by the enterprise

during the response period. The Director shall provide written

notice of a determination to take action and the reasons for such

determination to the enterprise, the Committee on Banking, Finance

and Urban Affairs of the House of Representatives, and the

Committee on Banking, Housing, and Urban Affairs of the Senate.

Such notice shall respond to any information submitted during the

response period.

(e) Effective date of actions

An action referred to in subsection (b) of this section shall

take effect upon receipt by the enterprise of notice of the

determination of the Director under subsection (d) of this section,

unless otherwise provided in such notice.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1368, Oct. 28, 1992, 106 Stat.

3980.)

-CHANGE-

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of

Representatives treated as referring to Committee 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 Congress. Committee on Banking and Financial Services of House

of Representatives abolished and replaced by Committee on Financial

Services of House of Representatives, and jurisdiction over matters

relating to securities and exchanges and insurance generally

transferred from Committee on Energy and Commerce of House of

Representatives by House Resolution No. 5, One Hundred Seventh

Congress, Jan. 3, 2001.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4617 of this title.

-CITE-

12 USC Sec. 4619 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER II - REQUIRED CAPITAL LEVELS FOR ENTERPRISES AND SPECIAL

ENFORCEMENT POWERS

-HEAD-

Sec. 4619. Appointment of conservators

-STATUTE-

(a) Appointment

(1) Discretionary authority

The Director may, after providing notice under paragraph (3),

appoint a conservator for an enterprise upon a determination in

writing -

(A) that alternative remedies available to the Director under

this chapter are not satisfactory; and

(B) that -

(i) the enterprise is not likely to pay its obligations in

the normal course of business;

(ii) the enterprise has incurred or is reasonably likely to

incur losses that would deplete substantially all of its core

capital and it is unlikely that the enterprise will replenish

its core capital within a reasonable period;

(iii) the enterprise has concealed or is concealing books,

papers, records, or assets of the enterprise that are

material to the discharge of the Director's responsibilities

under this subchapter, or has refused or is refusing to

submit such books, papers, records, or information regarding

the affairs of the enterprise for inspection to the Director

upon request; or

(iv) the enterprise has willfully violated, or is willfully

violating, a final cease-and-desist order under section 4631

of this title.

(2) Consent of enterprise

Notwithstanding paragraph (1), the Director may appoint a

conservator for an enterprise if the enterprise, by an

affirmative vote of a majority of the members of its board of

directors or by an affirmative vote of a majority of its

shareholders, consents to such appointment.

(3) Notice

Upon making a determination under paragraph (1) of this

subsection or under section 4616 or 4617 of this title to appoint

a conservator for an enterprise, or upon consent of the

enterprise under paragraph (2) to such an appointment, the

Director shall provide written notice to the enterprise, the

Committee on Banking, Finance and Urban Affairs of the House of

Representatives, and the Committee on Banking, Housing, and Urban

Affairs of the Senate -

(A) that a conservator will be appointed for the enterprise;

(B) stating the reasons for the appointment of the

conservator; and

(C) identifying the person or governmental agency that the

Director intends to appoint as conservator.

(4) Qualifications

The conservator shall be -

(A) the Director or any other governmental agency; or

(B) any person that -

(i) has no claim against, or financial interest in, the

enterprise or other basis for a conflict of interest; and

(ii) has the financial and management expertise necessary

to direct the operations and affairs of the enterprise.

(b) Judicial review

(1) Timing and jurisdiction

Except as provided in paragraph (2), an enterprise for which a

conservator is appointed (pursuant to this section or section

4616 or 4617 of this title) may bring an action in the United

States District Court for the District of Columbia for an order

requiring the Director to terminate the appointment of the

conservator. The court, upon the merits, shall dismiss such

action or shall direct the Director to terminate the appointment

of the conservator. Such an action may be commenced only during

the 20-day period beginning upon the appointment of the

conservator.

(2) Consensual appointments

Appointment of a conservator pursuant to consent of the

enterprise under subsection (a)(2) of this section shall not be

subject to judicial review under this subsection.

(3) Standard of review

A decision of the Director to appoint a conservator may be set

aside under this subsection only if the court finds that the

decision was arbitrary, capricious, an abuse of discretion, or

otherwise not in accordance with applicable laws.

(4) Limitation on jurisdiction

Except as otherwise provided in this subsection, no court may

take any action regarding the removal of a conservator or

otherwise restrain or affect the exercise of powers or functions

of a conservator.

(c) Replacement

The Director may, without notice or hearing, replace a

conservator with another conservator. Such replacement shall not

affect the right of the enterprise under subsection (b) of this

section to obtain judicial review of the decision of the Director

to appoint a conservator.

(d) Examinations

The Director may examine and supervise any enterprise in

conservatorship during the period in which the enterprise continues

to operate as a going concern.

(e) Termination

(1) Discretionary

At any time the Director determines that termination of a

conservatorship pursuant to an appointment under subsection (a)

of this section is in the public interest and may safely be

accomplished, the Director may terminate the conservatorship and

permit the enterprise to resume the transaction of its business

subject to such terms, conditions, and limitations as the

Director may prescribe.

(2) Mandatory

The Director shall terminate a conservatorship initiated

pursuant to section 4616 or 4617 of this title upon a

determination by the Director that the enterprise has maintained

an amount of core capital that is equal to or exceeds the minimum

capital level for the enterprise established under section 4612

of this title, and may by written order prescribe such terms,

conditions, and limitations on the enterprise as the Director

considers appropriate.

(3) Terms

Any terms, conditions, and limitations imposed by the Director

upon termination of a conservatorship shall be enforceable and

reviewable under the provisions of sections 4634 and 4635 of this

title, to the same extent as any cease-and-desist order issued

pursuant to subchapter III of this chapter.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1369, Oct. 28, 1992, 106 Stat.

3981.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in subsec. (a)(1)(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 complete classification of title XIII to the

Code, see Short Title note set out under section 4501 of this title

and Tables.

-CHANGE-

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of

Representatives treated as referring to Committee 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 Congress. Committee on Banking and Financial Services of House

of Representatives abolished and replaced by Committee on Financial

Services of House of Representatives, and jurisdiction over matters

relating to securities and exchanges and insurance generally

transferred from Committee on Energy and Commerce of House of

Representatives by House Resolution No. 5, One Hundred Seventh

Congress, Jan. 3, 2001.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4616, 4617, 4620, 4623,

4635 of this title.

-CITE-

12 USC Sec. 4620 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER II - REQUIRED CAPITAL LEVELS FOR ENTERPRISES AND SPECIAL

ENFORCEMENT POWERS

-HEAD-

Sec. 4620. Powers of conservators

-STATUTE-

(a) General powers

A conservator shall have all the powers of the shareholders,

directors, and officers of the enterprise under conservatorship and

may operate the enterprise in the name of the enterprise, unless

the Director provides otherwise.

(b) Additional power

A conservator may avoid any security interest taken by a creditor

with the intent to hinder, delay, or defraud the enterprise or the

creditors of the enterprise.

(c) Limitations by Director

A conservator shall be subject to any rules, regulations, and

orders issued from time to time by the Director and, except as

otherwise specifically provided in such rules, regulations, or

orders or in section 4621 of this title, shall have the same rights

and privileges and be subject to the same duties, restrictions,

penalties, conditions, and limitations applicable to directors,

officers, or employees of the enterprise.

(d) Enforcement of contracts

(1) In general

A conservator may enforce any contract described in paragraph

(2), notwithstanding any provision of the contract providing for

the termination, default, acceleration, or other exercise of

rights upon, or solely by reason of, the insolvency of the

enterprise or the appointment of a conservator.

(2) Enforceable contracts

Any contract that is within a class of contracts shall be

enforceable under paragraph (1) if the Director -

(A) determines that the continued enforceability of such

class of contracts is necessary to achieve the purpose of the

conservatorship; and

(B) specifically provides for the enforceability of such

class of contracts in a regulation or order, issued for the

purpose of this subsection, which describes such class.

(3) Applicability

This subsection and any regulation or order issued under this

subsection shall apply only to contracts entered into, modified,

extended, or renewed after the effective date of the regulation

or order.

(e) Stays

(1) In general

Not later than 45 days after appointment pursuant to section

4616, 4617, or 4619 of this title, or 45 days after receipt of

actual notice of an action or proceeding that is pending at the

time of appointment, a conservator may request that any judicial

action or proceeding to which the conservator or the enterprise

is or may become a party be stayed for a period not exceeding 45

days after the request. Upon petition, the court shall grant

such stay as to all parties.

(2) Federal agency as conservator

In any case in which the conservator appointed for an

enterprise is a Federal agency or an officer or employee of the

Federal Government, the conservator may make a request for a stay

under paragraph (1) only with the prior consent of the Attorney

General and subject to the direction and control of the Attorney

General.

(f) Payment of creditors

The Director may require a conservator to set aside and make

available for payment to creditors any amounts that the Director

determines may safely be used for such purpose. All creditors who

are similarly situated shall be treated in a similar manner.

(g) Compensation of conservator and employees

A conservator and professional employees (other than Federal

employees) appointed to represent or assist the conservator may be

compensated for activities conducted as conservator. Compensation

may not be provided in amounts greater than the compensation paid

to employees of the Federal Government for similar services, except

that the Director may provide for compensation at higher rates (but

not in excess of rates prevailing in the private sector), if the

Director determines that compensation at higher rates is necessary

in order to recruit and retain competent personnel.

(h) Expenses

All expenses of a conservatorship pursuant to this section

(including compensation pursuant to subsection (f) of this section)

shall be paid by the enterprise under conservatorship and shall be

secured by a lien on the enterprise, which shall have priority over

any other lien.

(i) Conflicts of interest and financial disclosure

A conservator shall be subject to any laws and regulations

relating to conflicts of interest and financial disclosure that

apply to employees of the Office.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1369A, Oct. 28, 1992, 106 Stat.

3983.)

-CITE-

12 USC Sec. 4621 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER II - REQUIRED CAPITAL LEVELS FOR ENTERPRISES AND SPECIAL

ENFORCEMENT POWERS

-HEAD-

Sec. 4621. Liability protection for conservators

-STATUTE-

(a) Federal agencies and employees

In any case in which a conservator appointed under this

subchapter is a Federal agency or an officer or employee of the

Federal Government, the provisions of chapters 161 and 171 of title

28 shall apply with respect to the liability of the conservator for

acts or omissions performed pursuant to and in the course of the

duties and responsibilities of the conservatorship.

(b) Other conservators

In any case where the conservator is not a conservator described

in subsection (a) of this section, the conservator shall not be

personally liable for damages in tort or otherwise for acts or

omissions performed pursuant to and in the course of the duties and

responsibilities of the conservatorship, unless such acts or

omissions constitute gross negligence or any form of intentional

tortious conduct or criminal conduct.

(c) Indemnification

The Director, with the approval of the Attorney General, may

indemnify the conservator on such terms as the Director considers

appropriate.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1369B, Oct. 28, 1992, 106 Stat.

3984.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4620 of this title.

-CITE-

12 USC Sec. 4622 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER II - REQUIRED CAPITAL LEVELS FOR ENTERPRISES AND SPECIAL

ENFORCEMENT POWERS

-HEAD-

Sec. 4622. Capital restoration plans

-STATUTE-

(a) Contents

Each capital restoration plan submitted under this subchapter

shall set forth a feasible plan for restoring the core capital of

the enterprise subject to the plan to an amount not less than the

minimum capital level for the enterprise and for restoring the

total capital of the enterprise to an amount not less than the

risk-based capital level for the enterprise. Each capital

restoration plan shall -

(1) specify the level of capital the enterprise will achieve

and maintain;

(2) describe the actions that the enterprise will take to

become classified as adequately 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 enterprise will engage

during the term of the plan; and

(5) describe the actions that the enterprise will take to

comply with any mandatory 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 enterprise 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 necessary. Any extension of the deadline shall be in writing

and for a time certain.

(c) Approval

The Director shall review each capital restoration 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 disapproval for any plan for a single

additional 30-day period if the Director determines it necessary.

The Director shall provide written notice to any enterprise

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 enterprise, the enterprise 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.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1369C, Oct. 28, 1992, 106 Stat.

3985.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4615, 4616 of this title.

-CITE-

12 USC Sec. 4623 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER II - REQUIRED CAPITAL LEVELS FOR ENTERPRISES AND SPECIAL

ENFORCEMENT POWERS

-HEAD-

Sec. 4623. Judicial review of Director action

-STATUTE-

(a) Jurisdiction

(1) Filing of petition

An enterprise that is not classified as critically

undercapitalized and is the subject of a classification under

section 4614 of this title or a discretionary supervisory action

taken under this subchapter by the Director (other than action to

appoint a conservator under section 4616 or 4617 of this title or

action under section 4619 of this title) may obtain review of the

classification or action by filing, within 10 days after

receiving written notice of the Director's action, a written

petition requesting that the classification or action of the

Director be modified, terminated, or set aside.

(2) Place for filing

A petition filed pursuant to this subsection shall be filed in

the United States Court of Appeals for the District of Columbia

Circuit.

(b) Scope of review

The Court (FOOTNOTE 1) may modify, terminate, or set aside an

action taken by the Director and reviewed by the Court (FOOTNOTE 1)

pursuant to this section only if the court finds, on the record on

which the Director acted, that the action of the Director was

arbitrary, capricious, an abuse of discretion, or otherwise not in

accordance with applicable laws.

(FOOTNOTE 1) So in original. Probably should not be

capitalized.

(c) Unavailability of stay

The commencement of proceedings for judicial review pursuant to

this section shall not operate as a stay of any action taken by the

Director. Pending judicial review of the action, the court shall

not have jurisdiction to stay, enjoin, or otherwise delay any

supervisory action taken by the Director with respect to an

enterprise that is classified as significantly or critically

undercapitalized or any action of the Director that results in the

classification of an enterprise as significantly or critically

undercapitalized.

(d) Limitation on jurisdiction

Except as provided in this section, no court shall have

jurisdiction to affect, by injunction or otherwise, the issuance or

effectiveness of any classification or action of the Director under

this subchapter (other than appointment of a conservator under

section 4616 or 4617 of this title or action under section 4619 of

this title) or to review, modify, suspend, terminate, or set aside

such classification or action.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1369D, Oct. 28, 1992, 106 Stat.

3985.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4635 of this title.

-CITE-

12 USC SUBCHAPTER III - ENFORCEMENT PROVISIONS 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER III - ENFORCEMENT PROVISIONS

.

-HEAD-

SUBCHAPTER III - ENFORCEMENT PROVISIONS

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 1422b, 4513, 4521,

4522, 4619 of this title.

-CITE-

12 USC Sec. 4631 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER III - ENFORCEMENT PROVISIONS

-HEAD-

Sec. 4631. Cease-and-desist proceedings

-STATUTE-

(a) Grounds for issuance against adequately capitalized enterprises

The Director may issue and serve a notice of charges under this

section upon an enterprise that is classified (for purposes of

subchapter II of this chapter) as adequately capitalized or upon

any executive officer or director of such an enterprise, if in the

determination of the Director, the enterprise, executive officer,

or director is engaging or has engaged, or the Director has

reasonable cause to believe that the enterprise, executive officer,

or director is about to engage, in -

(1) any conduct that threatens to cause a significant depletion

of the core capital of the enterprise;

(2) any conduct or violation that may result in the issuance of

an order described in subsection (d)(1) of this section; or

(3) any conduct that violates -

(A) any provision of this chapter, the Federal National

Mortgage Association Charter Act (12 U.S.C. 1716 et seq.), the

Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451 et

seq.), or any order, rule, or regulation under any such chapter

or Act, except that the Director may not enforce compliance

with any housing goal established under subpart 2 of part B of

subchapter I of this chapter, with section 4566 or 4567 of this

title, or with subsection (m) or (n) of section 309 of the

Federal National Mortgage Association Charter Act (12 U.S.C.

1723a(m), (n)) or subsection (e) or (f) of section 307 of the

Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1456(e),

(f)); or

(B) any written agreement entered into by the enterprise with

the Director.

(b) Grounds for issuance against undercapitalized, significantly

undercapitalized, and critically undercapitalized enterprises

The Director may issue and serve a notice of charges under this

section upon an enterprise classified (for purposes of subchapter

II of this chapter) as undercapitalized, significantly

undercapitalized, or critically undercapitalized, or any executive

officer or director of any such enterprise, if in the determination

of the Director the enterprise, executive officer, or director is

engaging or has engaged, or the Director has reasonable cause to

believe that the enterprise, executive officer, or director is

about to engage, in -

(1) any conduct likely to result in a material depletion of the

core capital of the enterprise, or

(2) any conduct or violation described in paragraph (2) or (3)

of subsection (a) of this section,

except that the Director may not enforce compliance with any

housing goal established under subpart 2 of part B of subchapter I

of this chapter, with section 4566 or 4567 of this title, or with

subsection (m) or (n) of section 309 of the Federal National

Mortgage Association Charter Act (12 U.S.C. 1723a(m), (n)) or

subsection (e) or (f) of section 307 of the Federal Home Loan

Mortgage Corporation Act (12 U.S.C. 1456(e), (f)).

(c) Procedure

(1) Notice of charges

Each notice of charges under this section shall contain a

statement of the facts constituting the alleged conduct or

violation and shall fix a time and place at which a hearing will

be held to determine on the record whether an order to cease and

desist from such conduct or violation should issue.

(2) Issuance of order

If the Director finds on the record made at such hearing that

any conduct or violation specified in the notice of charges has

been established (or the enterprise consents pursuant to section

4633(a)(4) of this title), the Director may issue and serve upon

the enterprise, executive officer, or director an order requiring

such party to cease and desist from any such conduct or violation

and to take affirmative action to correct or remedy the

conditions resulting from any such conduct or violation.

(d) Affirmative action to correct conditions resulting from

violations or activities

The authority under this section and section 4632 of this title

to issue any order requiring an enterprise, executive officer, or

director to take affirmative action to correct or remedy any

condition resulting from any conduct or violation with respect to

which such order is issued includes the authority -

(1) to require an executive officer or a director to make

restitution to, or provide reimbursement, indemnification, or

guarantee against loss to the enterprise to the extent that such

person -

(A) was unjustly enriched in connection with such conduct or

violation; or

(B) engaged in conduct or a violation that would subject such

person to a civil penalty pursuant to section 4636(b)(3) of

this title;

(2) to require an enterprise to seek restitution, or to obtain

reimbursement, indemnification, or guarantee against loss;

(3) to restrict the growth of the enterprise;

(4) to require the enterprise to dispose of any asset involved;

(5) to require the enterprise to rescind agreements or

contracts;

(6) to require the enterprise to employ qualified officers or

employees (who may be subject to approval by the Director at the

direction of the Director); and

(7) to require the enterprise to take such other action as the

Director determines appropriate.

(e) Authority to limit activities

The authority to issue an order under this section or section

4632 of this title includes the authority to place limitations on

the activities or functions of the enterprise or any executive

officer or director of the enterprise.

(f) Effective date

An order under this section shall become effective upon the

expiration of the 30-day period beginning on the service of the

order upon the enterprise, executive officer, or director concerned

(except in the case of an order issued upon consent, which shall

become effective at the time specified therein), and shall remain

effective and enforceable as provided in the order, except to the

extent that the order is stayed, modified, terminated, or set aside

by action of the Director or otherwise, as provided in this

subchapter.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1371, Oct. 28, 1992, 106 Stat.

3986.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in subsec. (a)(3)(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 complete classification of title XIII to the

Code, see Short Title note set out under section 4501 of this title

and Tables.

The Federal Home Loan Mortgage Corporation Act, referred to in

subsec. (a)(3)(A), is title III of Pub. L. 91-351, July 24, 1970,

84 Stat. 451, as amended, which is classified generally to chapter

11A (Sec. 1451 et seq.) of this title. For complete classification

of this Act to the Code, see Short Title and Statement of Purpose

note set out under section 1451 of this title and Tables.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1422b, 4619, 4632, 4633,

4634, 4635, 4636 of this title.

-CITE-

12 USC Sec. 4632 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER III - ENFORCEMENT PROVISIONS

-HEAD-

Sec. 4632. Temporary cease-and-desist orders

-STATUTE-

(a) Grounds for issuance and scope

Whenever the Director determines that any conduct or violation,

or threatened conduct or violation, specified in the notice of

charges served upon the enterprise, executive officer, or director

pursuant to section 4631(a) or (b) of this title, or the

continuation thereof, is likely -

(1) to cause insolvency,

(2) to cause a significant depletion of the core capital of the

enterprise, or

(3) otherwise to cause irreparable harm to the enterprise,

prior to the completion of the proceedings conducted pursuant to

section 4631(c) of this title, the Director may issue a temporary

order requiring the enterprise, executive officer, or director to

cease and desist from any such conduct or violation and to take

affirmative action to prevent or remedy such insolvency, depletion,

or harm pending completion of such proceedings. Such order may

include any requirement authorized under section 4631(d) of this

title.

(b) Effective date

An order issued pursuant to subsection (a) of this section shall

become effective upon service upon the enterprise, executive

officer, or director and, unless set aside, limited, or suspended

by a court in proceedings pursuant to subsection (d) of this

section, shall remain in effect and enforceable pending the

completion of the proceedings pursuant to such notice and shall

remain effective until the Director dismisses the charges specified

in the notice or until superseded by a cease-and-desist order

issued pursuant to section 4631 of this title.

(c) Incomplete or inaccurate records

(1) Temporary order

If a notice of charges served under section 4631(a) or (b) of

this title specifies on the basis of particular facts and

circumstances that the books and records of the enterprise served

are so incomplete or inaccurate that the Director is unable,

through the normal supervisory process, to determine the

financial condition of the enterprise or the details or the

purpose of any transaction or transactions that may have a

material effect on the financial condition of that enterprise,

the Director may issue a temporary order requiring -

(A) the cessation of any activity or practice which gave

rise, whether in whole or in part, to the incomplete or

inaccurate state of the books or records; or

(B) affirmative action to restore the books or records to a

complete and accurate state.

(2) Effective period

Any temporary order issued under paragraph (1) -

(A) shall become effective upon service; and

(B) unless set aside, limited, or suspended by a court in

proceedings pursuant to subsection (d) of this section, shall

remain in effect and enforceable until the earlier of -

(i) the completion of the proceeding initiated under

section 4631 of this title in connection with the notice of

charges; or

(ii) the date the Director determines, by examination or

otherwise, that the books and records of the enterprise are

accurate and reflect the financial condition of the

enterprise.

(d) Judicial review

An enterprise, executive officer, or director that has been

served with a temporary order pursuant to this section may apply to

the United States District Court for the District of Columbia

within 10 days after such service for an injunction setting aside,

limiting, or suspending the enforcement, operation, or

effectiveness of the order pending the completion of the

administrative proceedings pursuant to the notice of charges served

upon the enterprise, executive officer, or director under section

4631(a) or (b) of this title. Such court shall have jurisdiction

to issue such injunction.

(e) Enforcement by Attorney General

In the case of violation or threatened violation of, or failure

to obey, a temporary order issued pursuant to this section, the

Director may request the Attorney General of the United States to

bring an action in the United States District Court for the

District of Columbia for an injunction to enforce such order or

may, under the direction and control of the Attorney General, bring

such an action. If the court finds any such violation, threatened

violation, or failure to obey, the court shall issue such

injunction.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1372, Oct. 28, 1992, 106 Stat.

3988.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4631, 4635, 4636 of this

title.

-CITE-

12 USC Sec. 4633 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER III - ENFORCEMENT PROVISIONS

-HEAD-

Sec. 4633. Hearings

-STATUTE-

(a) Requirements

(1) Venue and record

Any hearing under section 4631 or 4636(c) of this title shall

be held on the record and in the District of Columbia.

(2) Timing

Any such hearing shall be fixed for a date not earlier than 30

days nor later than 60 days after service of the notice of

charges under section 4631 of this title or determination to

impose a penalty under section 4636 of this title, unless an

earlier or a later date is set by the hearing officer at the

request of the party served.

(3) Procedure

Any such hearing shall be conducted in accordance with chapter

5 of title 5.

(4) Failure to appear

If the party served fails to appear at the hearing through a

duly authorized representative, such party shall be deemed to

have consented to the issuance of the cease-and-desist order or

the imposition of the penalty for which the hearing is held.

(b) Issuance of order

(1) In general

After any such hearing, and within 90 days after the parties

have been notified that the case has been submitted to the

Director for final decision, the Director shall render the

decision (which shall include findings of fact upon which the

decision is predicated) and shall issue and serve upon each party

to the proceeding an order or orders consistent with the

provisions of this subchapter.

(2) Modification

Judicial review of any such order shall be exclusively as

provided in section 4634 of this title. Unless such a petition

for review is timely filed as provided in section 4634 of this

title, and thereafter until the record in the proceeding has been

filed as so provided, the Director may at any time, modify,

terminate, or set aside any such order, upon such notice and in

such manner as the Director considers proper. Upon such filing

of the record, the Director may modify, terminate, or set aside

any such order with permission of the court.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1373, Oct. 28, 1992, 106 Stat.

3989.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4631, 4634, 4636, 4639 of

this title.

-CITE-

12 USC Sec. 4634 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER III - ENFORCEMENT PROVISIONS

-HEAD-

Sec. 4634. Judicial review

-STATUTE-

(a) Commencement

Any party to a proceeding under section 4631 or 4636 of this

title may obtain review of any final order issued under such

section by filing in the United States Court of Appeals for the

District of Columbia Circuit, within 30 days after the date of

service of such order, a written petition praying that the order of

the Director be modified, terminated, or set aside. The clerk of

the court shall transmit a copy of the petition to the Director.

(b) Filing of record

Upon receiving a copy of a petition, the Director shall file in

the court the record in the proceeding, as provided in section 2112

of title 28.

(c) Jurisdiction

Upon the filing of a petition, such court shall have

jurisdiction, which upon the filing of the record by the Director

shall (except as provided in the last sentence of section

4633(b)(2) of this title) be exclusive, to affirm, modify,

terminate, or set aside, in whole or in part, the order of the

Director.

(d) Review

Review of such proceedings shall be governed by chapter 7 of

title 5.

(e) Order to pay penalty

Such court shall have the authority in any such review to order

payment of any penalty imposed by the Director under this

subchapter.

(f) No automatic stay

The commencement of proceedings for judicial review under this

section shall not, unless specifically ordered by the court,

operate as a stay of any order issued by the Director.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1374, Oct. 28, 1992, 106 Stat.

3990.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4619, 4633, 4636, 4639 of

this title.

-CITE-

12 USC Sec. 4635 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER III - ENFORCEMENT PROVISIONS

-HEAD-

Sec. 4635. Enforcement and jurisdiction

-STATUTE-

(a) Enforcement

The Director may request the Attorney General of the United

States to bring an action in the United States District Court for

the District of Columbia for the enforcement of any effective

notice or order issued under this subchapter or subchapter II of

this chapter or may, under the direction and control of the

Attorney General, bring such an action. Such court shall have

jurisdiction and power to order and require compliance herewith.

(b) Limitation on jurisdiction

Except as otherwise provided in this subchapter and sections 4619

and 4623 of this title, no court shall have jurisdiction to affect,

by injunction or otherwise, the issuance or enforcement of any

notice or order under section 4631, 4632, or 4636 of this title, or

subchapter II of this chapter, or to review, modify, suspend,

terminate, or set aside any such notice or order.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1375, Oct. 28, 1992, 106 Stat.

3990.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4619 of this title.

-CITE-

12 USC Sec. 4636 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER III - ENFORCEMENT PROVISIONS

-HEAD-

Sec. 4636. Civil money penalties

-STATUTE-

(a) In general

The Director may impose a civil money penalty in accordance with

this section on any enterprise, or any executive officer or

director of any enterprise, that -

(1) violates any provision of this chapter, the Federal

National Mortgage Association Charter Act (12 U.S.C. 1716 et

seq.), the Federal Home Loan Mortgage Corporation Act (12 U.S.C.

1451 et seq.), or any order, rule, or regulation under any such

chapter or Act, except that the Director may not enforce

compliance with any housing goal established under subpart 2 of

part B of subchapter I of this chapter, with section 4566 or 4567

of this title, or with subsection (m) or (n) of section 309 of

the Federal National Mortgage Association Charter Act (12 U.S.C.

1723a(m), (n)) or subsection (e) or (f) of section 307 of the

Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1456(e),

(f));

(2) violates any final or temporary order issued pursuant to

section 4615, 4616, 4631, or 4632 of this title;

(3) violates any written agreement between the enterprise and

the Director; or

(4) engages in any conduct that causes or is likely to cause a

loss to the enterprise.

(b) Amount of penalty

(1) First tier

The Director may impose a penalty on an enterprise for any

violation described in paragraphs (1) through (3) of subsection

(a) of this section. The amount of a penalty under this

paragraph shall not exceed $5,000 for each day that a violation

continues.

(2) Second tier

The Director may impose a penalty on an executive officer or

director in an amount not to exceed $10,000, or on an enterprise

in an amount not to exceed $25,000, for each day that a violation

or conduct described in subsection (a) of this section continues,

if the Director finds that the violation or conduct -

(A) is part of a pattern of misconduct; or

(B) involved recklessness and caused or would be likely to

cause a material loss to the enterprise.

(3) Third tier

The Director may impose a penalty on an executive officer or

director in an amount not to exceed $100,000, or on an enterprise

in an amount not to exceed $1,000,000, for each day that a

violation or conduct described in subsection (a) of this section

continues, if the Director finds that the violation or conduct

was knowing and caused or would be likely to cause a substantial

loss to the enterprise.

(c) Procedures

(1) Establishment

The Director shall establish standards and procedures governing

the imposition of civil money penalties under subsections (a) and

(b) of this section. Such standards and procedures -

(A) shall provide for the Director to notify the enterprise

in writing of the Director's determination to impose the

penalty, which shall be made on the record;

(B) shall provide for the imposition of a penalty only after

the enterprise, executive officer, or director has been given

an opportunity for a hearing on the record pursuant to section

4633 of this title; and

(C) may provide for review by the Director of any

determination or order, or interlocutory ruling, arising from a

hearing.

(2) Factors in determining amount of penalty

In determining the amount of a penalty under this section, the

Director shall give consideration to such factors as the gravity

of the violation, any history of prior violations, the effect of

the penalty on the safety and soundness of the enterprise, any

injury to the public, any benefits received, and deterrence of

future violations, and any other factors the Director may

determine by regulation to be appropriate.

(3) Review of imposition of penalty

The order of the Director imposing a penalty under this section

shall not be subject to review, except as provided in section

4634 of this title.

(d) Action to collect penalty

If an enterprise, executive officer, or director fails to comply

with an order of the Director imposing a civil money penalty under

this section, after the order is no longer subject to review as

provided under subsection (c)(1) of this section and section 4634

of this title, the Director may request the Attorney General of the

United States to bring an action in the United States District

Court for the District of Columbia to obtain a monetary judgment

against the enterprise, executive officer, or director and such

other relief as may be available, or may, under the direction and

control of the Attorney General, bring such an action. The

monetary judgment may, in the discretion of the court, include any

attorneys fees and other expenses incurred by the United States in

connection with the action. In an action under this subsection,

the validity and appropriateness of the order of the Director

imposing the penalty shall not be subject to review.

(e) Settlement by Director

The Director may compromise, modify, or remit any civil money

penalty which may be, or has been, imposed under this section.

(f) Availability of other remedies

Any civil money penalty under this section shall be in addition

to any other available civil remedy and may be imposed whether or

not the Director imposes other administrative sanctions.

(g) Prohibition of reimbursement or indemnification

An enterprise may not reimburse or indemnify any individual for

any penalty imposed under subsection (b)(3) of this section.

(h) Deposit of penalties

The Director shall deposit any civil money penalties collected

under this section into the general fund of the Treasury.

(i) Applicability

A penalty under this section may be imposed only for conduct or

violations under subsection (a) of this section occurring after

October 28, 1992.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1376, Oct. 28, 1992, 106 Stat.

3991.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in subsec. (a)(1), 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 complete classification of title XIII to the Code,

see Short Title note set out under section 4501 of this title and

Tables.

The Federal National Mortgage Association Charter Act, referred

to in subsec. (a)(1), is title III of act June 27, 1934, ch. 847,

48 Stat. 1252, as amended, which is classified generally to

subchapter III (Sec. 1716 et seq.) of chapter 13 of this title.

For complete classification of this Act to the Code, see Short

Title note set out under section 1716 of this title and Tables.

The Federal Home Loan Mortgage Corporation Act, referred to in

subsec. (a)(1), is title III of Pub. L. 91-351, July 24, 1970, 84

Stat. 451, as amended, which is classified generally to chapter 11A

(Sec. 1451 et seq.) of this title. For complete classification of

this Act to the Code, see Short Title and Statement of Purpose note

set out under section 1451 of this title and Tables.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4631, 4633, 4634, 4635 of

this title.

-CITE-

12 USC Sec. 4637 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER III - ENFORCEMENT PROVISIONS

-HEAD-

Sec. 4637. Notice after separation from service

-STATUTE-

The resignation, termination of employment or participation, or

separation of a director or executive officer of an enterprise

shall not affect the jurisdiction and authority of the Director to

issue any notice and proceed under this subchapter against any such

director or executive officer, if such notice is served before the

end of the 2-year period beginning on the date such director or

executive officer ceases to be associated with the enterprise.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1377, Oct. 28, 1992, 106 Stat.

3992.)

-CITE-

12 USC Sec. 4638 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER III - ENFORCEMENT PROVISIONS

-HEAD-

Sec. 4638. Private rights of action

-STATUTE-

This chapter shall not create any private right of action on

behalf of any person against an enterprise, or any director or

executive officer of an enterprise, or impair any existing private

right of action under other applicable law.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1378, Oct. 28, 1992, 106 Stat.

3993.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in text, was in the original ''this

title and the amendments made by this title'', meaning title XIII

of Pub. L. 102-550, Oct. 28, 1992, 106 Stat. 3941, which is

classified principally to this chapter. For complete

classification of title XIII to the Code, see Short Title note set

out under section 4501 of this title and Tables.

-CITE-

12 USC Sec. 4639 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER III - ENFORCEMENT PROVISIONS

-HEAD-

Sec. 4639. Public disclosure of final orders and agreements

-STATUTE-

(a) In general

The Director shall make available to the public -

(1) any written agreement or other written statement for which

a violation may be redressed by the Director or any modification

to or termination thereof, unless the Director, in the Director's

discretion, determines that public disclosure would be contrary

to the public interest;

(2) any order that is issued with respect to any administrative

enforcement proceeding initiated by the Director under this

subchapter and that has become final in accordance with sections

4633 and 4634 of this title; and

(3) any modification to or termination of any final order made

public pursuant to this subsection.

(b) Hearings

All hearings on the record with respect to any notice of charges

issued by the Director shall be open to the public, unless the

Director, in the Director's discretion, determines that holding an

open hearing would be contrary to the public interest.

(c) Delay of public disclosure under exceptional circumstances

If the Director makes a determination in writing that the public

disclosure of any final order pursuant to subsection (a) of this

section would seriously threaten the financial health or security

of the enterprise, the Director may delay the public disclosure of

such order for a reasonable time.

(d) Documents filed under seal in public enforcement hearings

The Director may file any document or part thereof under seal in

any hearing commenced by the Director if the Director determines in

writing that disclosure thereof would be contrary to the public

interest.

(e) Retention of documents

The Director shall keep and maintain a record, for not less than

6 years, of all documents described in subsection (a) of this

section and all enforcement agreements and other supervisory

actions and supporting documents issued with respect to or in

connection with any enforcement proceeding initiated by the

Director under this subchapter or any other law.

(f) Disclosures to Congress

This section may not be construed to authorize the withholding,

or to prohibit the disclosure, of any information to the Congress

or any committee or subcommittee thereof.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1379, Oct. 28, 1992, 106 Stat.

3993.)

-CITE-

12 USC Sec. 4640 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER III - ENFORCEMENT PROVISIONS

-HEAD-

Sec. 4640. Notice of service

-STATUTE-

Any service required or authorized to be made by the Director

under this subchapter may be made by registered mail, or in such

other manner reasonably calculated to give actual notice as the

Director may by regulation or otherwise provide.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1379A, Oct. 28, 1992, 106 Stat.

3993.)

-CITE-

12 USC Sec. 4641 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES

SUBCHAPTER III - ENFORCEMENT PROVISIONS

-HEAD-

Sec. 4641. Subpoena authority

-STATUTE-

(a) In general

In the course of or in connection with any administrative

proceeding under this subchapter, the Director shall have the

authority -

(1) to administer oaths and affirmations;

(2) to take and preserve testimony under oath;

(3) to issue subpoenas and subpoenas duces tecum; and

(4) to revoke, quash, or modify subpoenas and subpoenas duces

tecum issued by the Director.

(b) Witnesses and documents

The attendance of witnesses and the production of documents

provided for in this section may be required from any place in any

State at any designated place where such proceeding is being

conducted.

(c) Enforcement

The Director may request the Attorney General of the United

States to bring an action in the United States district court for

the judicial district in which such proceeding is being conducted,

or where the witness resides or conducts business, or the United

States District Court for the District of Columbia, for enforcement

of any subpoena or subpoena duces tecum issued pursuant to this

section or may, under the direction and control of the Attorney

General, bring such an action. Such courts shall have jurisdiction

and power to order and require compliance therewith.

(d) Fees and expenses

Witnesses subpoenaed under this section shall be paid the same

fees and mileage that are paid witnesses in the district courts of

the United States. Any court having jurisdiction of any proceeding

instituted under this section by an enterprise may allow to any

such party such reasonable expenses and attorneys fees as the court

deems just and proper. Such expenses and fees shall be paid by the

enterprise or from its assets.

-SOURCE-

(Pub. L. 102-550, title XIII, Sec. 1379B, Oct. 28, 1992, 106 Stat.

3994.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4517 of this title.

-CITE-