Page:United States Statutes at Large Volume 103 Part 2.djvu/1002

 103 STAT. 2012 PUBLIC LAW 101-235—DEC. 15, 1989 violation, as determined by the Secretary, each day shall con- stitute a separate violation. " Qai) VIOLATIONS FOR WHICH A PENALTY MAY BE IMPOSED.— "(1) VIOLATIONS. —The violations by an issuer or a custodicui for which the Secretary may impose a civil money penalty under subsection (a) are the following: "(A) Failure to make timely pa}mients of principal and interest to holders of securities guaranteed under section 306(g). "(B) Failure to segregate cashflowfrom pooled mortgages or to deposit either principal and interest funds or escrow funds into special accounts with a depository institution whose accounts are insured by the National Credit Union Administration or by the Federal Deposit Insurance Cor- poration through the Bank Insurance Fund for banks or through the Savings Association Insurance Fund for sav- ings associations. "(C) Use of escrow funds for any purpose other than that for which they were received. "(D) Transfer of servicing for a pool of mortgages to an issuer not approved under this title, unless expressly per- mitted by statute, regulation, or contract approved by the Secretary. "(E) Failure to maintain a minimum net worth in accord- ance with requirements prescribed by the Association; "(F) Failure to promptly notify the Association in writing of any changes that materially affect the business status of an issuer. "(G) Submission to the Association of false information in connection with any securities guaranteed, or mortgages pooled, under section 306(g). "(H) Hiring, or retaining in employment, an officer, direc- tor, principal, or employee whose duties involve, directly or indirectly, programs a^inistered by the Association while such person was under suspension or debarment l^ the Secretary. "(I) Submission to the Association of a false certification either on its own behalf or on behalf of another person or entity. "(J) Failure to comply with an agreement, certification, or condition of approval set forth on, or applicable to, the application for approval as an issuer of securities under section 306(g). "(K) Violation of any provisions of this title or any im- plementing regulation, handbook, or participant letter issued under authority of this title. "(2) NOTIFICATION TO ATTORNEY GENERAL. —Before taking action to impose a civil money penalty for a violation under paragraph (IXG) or paragraph (IXI), the Secretary shall inform the Attorney General of the u nited States. "(c) AGENCY PROCEDURES. — "(1) ESTABLISHMENT.— The Secretary shall establish standards and procedures governing the imposition of civil money pen- alties under subsection (a). The standards and procedures— "(A) shall provide for the Secretary to make the determination to impose the penalty;

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