Page:United States Statutes at Large Volume 103 Part 1.djvu/545

 PUBLIC LAW 101-73 —AUG. 9, 1989 103 STAT. 517 take such further action, pursuant to written procedures, it deems necessary to carry out the purposes of this title. SEC. 1120. VIOLATIONS IN OBTAINING AND PERFORMING APPRAISALS IN 12 USC 3349. FEDERALLY RELATED TRANSACTIONS. (a) VIOLATIONS.— Except as authorized by the Appraisal Sub- committee in exercising its waiver authority pursuant to section 1119(b), it shall be a violation of this section— (1) for a financial institution to seek, obtain, or give money or any other thing of value in exchange for the performance of an appraisal by a person who the institution knows is not a State certified or licensed appraiser in connection with a federally related transaction; and (2) for the Federal National Mortgage Association, the Fed- eral Home Loan Mortgage Corporation, or the Resolution Trust Corporation to knowingly contract for the performance of any appraisal by a person who is not a State certified or licensed appraiser in connection with a real estate related financial transaction defined in section 1121(5) to which such association or corporation is a party. (b) PENALTIES.— A financial institution that violates subsection (a)(1) shall be subject to civil penalties under section 8(i)(2) of the Federal Deposit Insurance Act or section 206(k)(2) of the Federal Credit Union Act, as appropriate. (c) PROCEEDING. — A proceeding with respect to a violation of this section shall be an administrative proceeding which may be con- ducted by a Federal financial institutions regulatory agency in accordance with the procedures set forth in subchapter II of chapter 5 of title 5, United States (Dode. SEC. 1121. DEFINITIONS. 12 USC 3350. For purposes of this title: (1) STATE APPRAISER CERTIFYING AND LICENSING AGENCY. —The term "State appraiser certifying and licensing agency" means a State agency established in compliance with this title. (2) APPRAISAL SUBCOMMITTEE; SUBCOMMITTEE. —The terms "Appraisal Subcommittee" and "subcommittee" mean the Ap- praisal Subcommittee of the Federal Financial Institutions Examination Council. (3) COUNCIL.—The term "Council" means the Federal Finan- cial Institutions Examinations Clouncil. (4) FEDERALLY RELATED TRANSACTION. — The term "federally related transaction" means any real estate-related financial transaction which— (A) a federal financial institutions regulatory agency or the Resolution Trust (Dorporation engages in, contracts for, or regulates; and (B) requires the services of an appraiser. (5) REAL ESTATE RELATED FINANCIAL TRANSACTION. — The term "real estate-related financial transaction" means any trans- action involving— (A) the sale, lease, purchase, investment in or exchange of real property, including interests in property, or the financ- ing thereof; (B) the refinancing of real property or interests in real property; and

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