Page:United States Statutes at Large Volume 103 Part 1.djvu/500

 103 STAT. 472 PUBLIC LAW 101-73—AUG. 9, 1989 imposed (under such section) and any such assessment shall be subject to the provisions of such section. "(f) HEARING.— 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 8(h) of the Federal Deposit Insurance Act shall apply to any proceeding under this section, "(g) DISBURSEMENT. — All penalties collected under authority of this paragraph shall be deposited into the Treasury. "(h) 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. "(i) REGULATIONS.— The Comptroller of the Currency and the Board shall prescribe regulations establishing such procedures as may be necessary to carry out this section.". (h) MEMBER BANK.— Section 19(1) of the Federal Reserve Act (12 U.S.C. 505(1)) is amended to read as follows: "(1) CIVIL MONEY PENALTY. — "(1) FIRST TIER.—Any member bank which, and any institu- tion-affiliated party (within the meaning of section 3(u) of the Federal Deposit Insurance Act) with respect to such member bank who, violates any provision of this section, or any regula- tion issued pursuant thereto, shall forfeit and pay a civil pen- alty 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 3(u) of the Federal Deposit Insurance Act) with respect to such member bank who— "(A)(i) commits any violation described in paragraph (1); "(ii) recklessly engages in an unsafe or unsound practice in conducting the affairs of such member bank; or "(iii) breaches any fiduciary duty; "(B) which violation, practice, or breach—

"(i) is part of a pattern of misconduct; "(ii) causes or is likely to cause more than a minimal loss to such member bank; or "(iii) results in pecuniary gain or other benefit to such party, shall forfeit and pay a civil penalty of not more than $25,000 for each day during which such violation, practice, J 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 3(u) of the Federal Deposit Insurance Act) with respect to such member bank >r who— "(A) knowingly— "(i) commits any violation described in paragraph (1); ( "(ii) engages in any unsafe or unsound practice in conducting the affairs of such member bank; or "(iii) breaches any fiduciary duty; and "(B) knowingly or recklessly causes a substantial loss to such member bank or a substantial pecuniary gain or other

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