Page:United States Statutes at Large Volume 122.djvu/2701

 12 2 STA T . 2 678PUBLIC LA W 11 0– 28 9—J UL Y3 0, 2008 SEC.1 11 3 . PROHIB I T IO NA N DW ITHHO L DIN G O F E X EC U TI V ECO M- PENSATION. (a)INGE NE RAL.—Section13 1 8 o f t h e F e d e r a lH o us in gE nter -p rises Financial Safet y and Soundness A ctof1 9 9 2 (12 U .S. C . 45 18) isa m ended— (1) in the section heading ,b y stri k ing ‘ ‘ OFEXC E S S IV E ’ ’ and inserting ‘‘ ANDW I TH HO L DIN G OF EXEC U TIVE’’ (2) in subsection (a)— (A) by striking ‘‘enterprise’’ and inserting ‘‘regulated entity’’; and ( B ) by striking ‘‘enterprises’’ and inserting ‘‘regulated entities’’; (3) by redesignating subsection (b) as subsection (d); and (4) by inserting after subsection (a) the follo w ing

‘‘(b) FA CTO R S .—In making any determination under subsection (a), the D irector may take into consideration any factors the Director considers rele v ant, including any wrongdoing on the part of the e x ecutive officer, and such wrongdoing shall include any fraudulent act or omission, breach of trust or fiduciary duty, violation of law, rule, regulation, order, or written agreement, and insider abuse with respect to the regulated entity. T he approval of an agreement or contract pursuant to section 3 0 9(d)(3)(B) of the Federal N ational M ortgage Association Charter Act (12 U.S.C. 1 7 23a(d)(3)(B)) or section 303(h)(2) of the Federal Home L oan Mortgage Corporation Act (12 U.S.C. 1452(h)(2)) shall not preclude the Director from making any subse q uent determination under subsection (a). ‘‘(c) WI T H HOL D IN G O F CO MP ENSATION.—In carrying out sub- section (a), the Director may require a regulated entity to withhold any payment, transfer, or disbursement of compensation to an executive officer, or to place such compensation in an escrow account, during the review of the reasonableness and comparability of compensation.’’. (b) CONFORMING AMENDMENTS.— (1) FANNIE MAE.—Section 309(d) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1723a(d)) is amended by adding at the end the following new paragraph: ‘‘(4) Notwithstanding any other provision of this section, the corporation shall not transfer, disburse, or pay compensation to any executive officer, or enter into an agreement with such executive officer, without the approval of the Director, for matters being reviewed under section 1318 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4518).’’. (2) FREDDIE MAC.—Section 303(h) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1452(h)) is amended by adding at the end the following new paragraph: ‘‘(4) Notwithstanding any other provision of this section, the Corporation shall not transfer, disburse, or pay compensation to any executive officer, or enter into an agreement with such executive officer, without the approval of the Director, for matters being reviewed under section 1318 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4518).’’. (3) FEDERAL HOME LOAN B AN K S.—Section 7 of the Federal Home Loan Bank Act (12 U.S.C. 1427) is amended by adding at the end the following new subsection: ‘‘(l) WITHHOLDING OF COMPENSATION.—Notwithstanding any other provision of this section, a Federal Home Loan Bank shall not transfer, disburse, or pay compensation to any executive officer,

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