12 U.S. Code § 505 - Civil money penalty
(1) First tier
Any member bank which, and any institution-affiliated party (within the meaning of section 1813 (u) of this title) with respect to such member bank who, violates any provision of this section, or any regulation issued pursuant thereto, shall forfeit and pay a civil penalty of not more than $5,000 for each day during which such violation continues.
(2) Second tier
Notwithstanding paragraph (1), any member bank which, and any institution-affiliated party (within the meaning of section 1813 (u) of this title) with respect to such member bank who—
(ii) recklessly engages in an unsafe or unsound practice in conducting the affairs of such member bank; or
(B) which violation, practice, or breach—
shall forfeit and pay a civil penalty of not more than $25,000 for each day during which such violation, practice, or breach continues.
(3) Third tier
Notwithstanding paragraphs (1) and (2), any member bank which, and any institution-affiliated party (within the meaning of section 1813 (u) of this title) with respect to such member bank who—
(B) knowingly or recklessly causes a substantial loss to such member bank or a substantial pecuniary gain or other benefit to such party by reason of such violation, practice, or breach,
shall forfeit and pay a civil penalty in an amount not to exceed the applicable maximum amount determined under paragraph (4) for each day during which such violation, practice, or breach continues.
(4) Maximum amounts of penalties for any violation described in paragraph (3)
The maximum daily amount of any civil penalty which may be assessed pursuant to paragraph (3) for any violation, practice, or breach described in such paragraph is—
(5) Assessment; etc.
Any penalty imposed under paragraph (1), (2), or (3) may be assessed and collected by the Board in the manner provided in subparagraphs (E), (F), (G), and (I) of section 1818 (i)(2) of this title for penalties imposed (under such section) and any such assessment shall be subject to the provisions of such section.
The member bank or other person against whom any penalty is assessed under this section shall be afforded an agency hearing if such member bank or person submits a request for such hearing within 20 days after the issuance of the notice of assessment. Section 1818 (h) of this title shall apply to any proceeding under this section.
All penalties collected under authority of this section shall be deposited into the Treasury.
(8) “Violate” defined
For purposes of this section, the term “violate” includes any action (alone or with another or others) for or toward causing, bringing about, participating in, counseling, or aiding or abetting a violation.
Source(Dec. 23, 1913, ch. 6, § 19(l), formerly § 19(j), as added Pub. L. 95–630, title I, § 102,Nov. 10, 1978, 92 Stat. 3642; renumbered § 19(l),Pub. L. 96–221, title I, § 105(f),Mar. 31, 1980, 94 Stat. 140; amended Pub. L. 97–320, title IV, § 424(a), (d)(2), (e),Oct. 15, 1982, 96 Stat. 1522, 1523; Pub. L. 101–73, title IX, § 907(h),Aug. 9, 1989, 103 Stat. 472.)
References in Text
This section, referred to in pars. (1) and (8), means section 19 of act Dec. 23, 1913, which is classified to sections 142, 371b, 371b–1, 374, 374a, 461, 463 to 466, 505, and 506 of this title.
1989—Pub. L. 101–73amended section generally, revising and restating as pars. (1) to (9) provisions of former pars. (1) to (7) which related to civil penalty respecting depository, reserve, etc., requirements; amount; hearing; review; action by Attorney General; and regulations.
1982—Par. (1). Pub. L. 97–320, § 424(a), (d)(2), inserted proviso giving Board discretionary authority to compromise, etc., any civil money penalty imposed under this section, and substituted “may be assessed” for “shall be assessed”.
Par. (4). Pub. L. 97–320, § 424(e), substituted “twenty days from the service” for “ten days from the date”.
Effective Date of 1989 Amendment
Amendment by Pub. L. 101–73applicable to conduct engaged in after Aug. 9, 1989, except that increased maximum penalties of $5,000 and $25,000 may apply to conduct engaged in before such date if such conduct is not already subject to a notice issued by the appropriate agency and occurred after completion of the last report of the examination of the institution by the appropriate agency occurring before Aug. 9, 1989, see section 907(l) ofPub. L. 101–73, set out as a note under section 93 of this title.
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