Page:United States Statutes at Large Volume 122.djvu/2793

 12 2 STA T . 2 7 7 0PUBLIC LA W 110 – 2 89—J UL Y3 0, 2008 (B)bystrik i ng‘ ‘ o r ma y ,u n de rt h e dire c tion and contro l o f the A ttorney G eneral, bring such action ’ ’ .SEC.1 1 53 . R E MOVAL A NDP RO HIB I T ION A U THORIT Y . (a) IN G E NE RAL . —P art 1 of subtitle C of the F ederal H ousing E nter p rises Financial S afety and Soundness Act of 1 9 9 2 (12 U .S.C. 463 1etse q .) is amended— (1) by redesignating sections 13 7 7 through 1379B (12 U.S.C. 4637 – 4641) as sections 1379 through 1379 D , respec - ti v ely and (2) by inserting after section 1376 (12 U.S.C. 4636) the follo w ing

‘SEC. 13 7 7. REMOVAL AND PROHIBITION AUTHORITY. ‘‘(a) A UTHO R I T YT OI S SUE O R D ER.— ‘‘(1) IN G ENERAL.—The Director may serve upon a party described in paragraph (2), or any officer, director, or manage- ment of the Office of Finance a written notice of the intention of the Director to suspend or remove such party from office, or prohibit any further participation by such party, in any manner, in the conduct of the affairs of the regulated entity. ‘‘(2) A P PLI C A B ILITY.—A party described in this paragraph is an entity-affiliated party or any officer, director, or manage- ment of the Office of Finance, if the Director determines that— ‘‘(A) that party, officer, or director has, directly or indirectly— ‘‘(i) violated— ‘‘(I) any law or regulation; ‘‘(II) any cease and desist order which has become final; ‘‘(III) any condition imposed in writing by the Director in connection with the grant of any application or other request by such regulated entity; or ‘‘(I V ) any written agreement between such regulated entity and the Director; ‘‘(ii) engaged or participated in any unsafe or unsound practice in connection with any regulated entity or business institution; or ‘‘(iii) committed or engaged in any act, omission, or practice which constitutes a breach of such party’s fiduciary duty; ‘‘(B) by reason of the violation, practice, or breach described in subparagraph (A)— ‘‘(i) such regulated entity or business institution has suffered or will probably suffer financial loss or other damage; or ‘‘(ii) such party has received financial gain or other benefit; and ‘‘(C) the violation, practice, or breach described in subparagraph (A)— ‘‘(i) involves personal dishonesty on the part of such party; or ‘‘(ii) demonstrates willful or continuing disregard by such party for the safety or soundness of such regulated entity or business institution. ‘‘(b) SUSPENSION ORDER.— 12USC463 6 a.

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