275
amination, a less-than-satisfactory rating for asset quality, 
management, earnings, or liquidity, the Director may (if 
the deficiency is not corrected) deem the regulated entity 
to be engaging in an unsafe or unsound practice for pur-
poses of this subsection.’’; 
(2) in subsection (c)(2), by striking ‘‘enterprise, 
executive officer, or director’’ and inserting ‘‘regu-
lated entity or regulated entity-affiliated party’’; and 
(3) in subsection (d)—
(A) in the matter preceding paragraph (1), 
by striking ‘‘enterprise, executive officer, or di-
rector’’ and inserting ‘‘regulated entity or regu-
lated entity-affiliated party’’; 
(B) in paragraph (1)—
(i) by striking ‘‘an executive officer or 
a director’’ and inserting ‘‘a regulated enti-
ty affiliated party’’; and 
(ii) by inserting ‘‘(including reim-
bursement of compensation under section 
1318)’’ after ‘‘reimbursement’’; 
(C) in paragraph (6), by striking ‘‘and’’ at 
the end; 
(D) by redesignating paragraph (7) as 
paragraph (8); and
276
(E) by inserting after paragraph (6) the 
following new paragraph: 
‘‘(7) to effect an attachment on a regulated en-
tity or regulated entity-affiliated party subject to an 
order under this section or section 1372; and’’. 
SEC. 162. TEMPORARY CEASE-AND-DESIST PROCEEDINGS. 
Section 1372 of the Housing and Community Devel-
opment Act of 1992 (12 U.S.C. 4632) is amended—
(1) by striking subsection (a) and inserting the 
following new subsection: 
‘‘(a) GROUNDS FOR ISSUANCE.—Whenever the Direc-
tor determines that the violation or threatened violation 
or the unsafe or unsound practice or practices specified 
in the notice of charges served upon the regulated entity 
or any regulated entity-affiliated party pursuant to section 
1371(a), or the continuation thereof, is likely to cause in-
solvency or significant dissipation of assets or earnings of 
the regulated entity, or is likely to weaken the condition 
of the regulated entity prior to the completion of the pro-
ceedings conducted pursuant to sections 1371 and 1373, 
the Director may issue a temporary order requiring the 
regulated entity or such party to cease and desist from 
any such violation or practice and to take affirmative ac-
tion to prevent or remedy such insolvency, dissipation, 
condition, or prejudice pending completion of such pro-
277
ceedings. Such order may include any requirement author-
ized under section 1371(d).’’; 
(2) in subsection (b), by striking ‘‘enterprise, 
executive officer, or director’’ and inserting ‘‘regu-
lated entity or regulated entity-affiliated party’’; 
(3) in subsection (d)—
(A) by striking ‘‘An enterprise, executive 
officer, or director’’ and inserting ‘‘A regulated 
entity or regulated entity-affiliated party’’; and 
(B) by striking ‘‘the enterprise, executive 
officer, or director’’ and inserting ‘‘the regu-
lated entity or regulated entity-affiliated party’’; 
and 
(4) by striking subsection (e) and in inserting 
the following new subsection: 
‘‘(e) ENFORCEMENT.—In the case of violation or 
threatened violation of, or failure to obey, a temporary 
cease-and-desist order issued pursuant to this section, the 
Director may apply to the United States District Court 
for the District of Columbia or the United States district 
court within the jurisdiction of which the headquarters of 
the regulated entity is located, for an injunction to enforce 
such order, and, if the court determines that there has 
been such violation or threatened violation or failure to
278
obey, it shall be the duty of the court to issue such injunc-
tion.’’. 
SEC. 163. PREJUDGMENT ATTACHMENT. 
The Housing and Community Development Act of 
1992 is amended by inserting after section 1375 (12 
U.S.C. 4635) the following new section: 
‘‘SEC. 1375A. PREJUDGMENT ATTACHMENT. 
‘‘(a) IN GENERAL.—In any action brought pursuant 
to this title, or in actions brought in aid of, or to enforce 
an order in, any administrative or other civil action for 
money damages, restitution, or civil money penalties 
brought pursuant to this title, the court may, upon appli-
cation of the Director or Attorney General, as applicable, 
issue a restraining order that—
‘‘(1) prohibits any person subject to the pro-
ceeding from withdrawing, transferring, removing, 
dissipating, or disposing of any funds, assets or 
other property; and 
‘‘(2) appoints a person on a temporary basis to 
administer the restraining order. 
‘‘(b) STANDARD.—
‘‘(1) SHOWING.—Rule 65 of the Federal Rules 
of Civil Procedure shall apply with respect to any 
proceeding under subsection (a) without regard to 
the requirement of such rule that the applicant show
279
that the injury, loss, or damage is irreparable and 
immediate. 
‘‘(2) STATE PROCEEDING.—If, in the case of 
any proceeding in a State court, the court deter-
mines that rules of civil procedure available under 
the laws of such State provide substantially similar 
protections to a party’s right to due process as Rule 
65 (as modified with respect to such proceeding by 
paragraph (1)), the relief sought under subsection 
(a) may be requested under the laws of such State.’’. 
SEC. 164. ENFORCEMENT AND JURISDICTION. 
Section 1375 of the Housing and Community Devel-
opment Act of 1992 (12 U.S.C. 4635) is amended—
(1) by striking subsection (a) and inserting the 
following new subsection: 
‘‘(a) ENFORCEMENT.—The Director may, in the dis-
cretion of the Director, apply to the United States District 
Court for the District of Columbia, or the United States 
district court within the jurisdiction of which the head-
quarters of the regulated entity is located, for the enforce-
ment of any effective and outstanding notice or order 
issued under this subtitle or subtitle B, or request that 
the Attorney General of the United States bring such an 
action. Such court shall have jurisdiction and power to
280
order and require compliance with such notice or order.’’; 
and 
(2) in subsection (b), by striking ‘‘or 1376’’ and 
inserting ‘‘1376, or 1377’’. 
SEC. 165. CIVIL MONEY PENALTIES. 
Section 1376 of the Housing and Community Devel-
opment Act of 1992 (12 U.S.C. 4636) is amended—
(1) in subsection (a)—
(A) in the matter preceding paragraph (1), 
by striking ‘‘, or any executive officer or direc-
tor’’ and inserting ‘‘or any regulated-entity af-
filiated party’’; and 
(B) in paragraph (1)—
(i) by striking ‘‘the Federal National 
Mortgage Association Charter Act, the 
Federal Home Loan Mortgage Corporation 
Act’’ and inserting ‘‘any provision of any 
of the authorizing statutes’’; 
(ii) by striking ‘‘or Act’’ and inserting 
‘‘or statute’’; 
(iii) by striking ‘‘or subsection’’ and 
inserting ‘‘, subsection’’; and 
(iv) by inserting ‘‘, or paragraph (5) 
or (12) of section 10(j) of the Federal
281
Home Loan Bank Act’’ before the semi-
colon at the end; 
(2) by striking subsection (b) and inserting the 
following new subsection: 
‘‘(b) AMOUNT OF PENALTY.—
‘‘(1) FIRST TIER.—Any regulated entity which, 
or any regulated entity-affiliated party who—
‘‘(A) violates any provision of this title, 
any provision of any of the authorizing statutes, 
or any order, condition, rule, or regulation 
under any such title or statute, except that the 
Director may not, pursuant to this section, en-
force compliance with any housing goal estab-
lished under subpart B of part 2 of subtitle A 
of this title, with section 1336 or 1337 of this 
title, with subsection (m) or (n) of section 309 
of the Federal National Mortgage Association 
Charter Act (12 U.S.C. 1723a(m), (n)), with 
subsection (e) or (f) of section 307 of the Fed-
eral Home Loan Mortgage Corporation Act (12 
U.S.C. 1456(e), (f)), or with paragraph (5) or 
(12) of section 10(j) of the Federal Home Loan 
Bank Act; 
‘‘(B) violates any final or temporary order 
or notice issued pursuant to this title;
282
‘‘(C) violates any condition imposed in 
writing by the Director in connection with the 
grant of any application or other request by 
such regulated entity; or 
‘‘(D) violates any written agreement be-
tween the regulated entity and the Director, 
shall forfeit and pay a civil money penalty of not 
more than $10,000 for each day during which such 
violation continues. 
‘‘(2) SECOND
TIER.—Notwithstanding para-
graph (1)—
‘‘(A) if a regulated entity, or a regulated 
entity-affiliated party—
‘‘(i) commits any violation described 
in any subparagraph of paragraph (1); 
‘‘(ii) recklessly engages in an unsafe 
or unsound practice in conducting the af-
fairs of such regulated entity; or 
‘‘(iii) breaches any fiduciary duty; and 
‘‘(B) the violation, practice, or breach—
‘‘(i) is part of a pattern of mis-
conduct; 
‘‘(ii) causes or is likely to cause more 
than a minimal loss to such regulated enti-
ty; or
283
‘‘(iii) results in pecuniary gain or 
other benefit to such party, 
the regulated entity or regulated entity-affiliated 
party shall forfeit and pay a civil penalty of not 
more than $50,000 for each day during which such 
violation, practice, or breach continues. 
‘‘(3) 
THIRD
TIER.—Notwithstanding 
para-
graphs (1) and (2), any regulated entity which, or 
any regulated entity-affiliated party who—
‘‘(A) knowingly—
‘‘(i) commits any violation or engages 
in any conduct described in any subpara-
graph of paragraph (1); 
‘‘(ii) engages in any unsafe or un-
sound practice in conducting the affairs of 
such regulated entity; or 
‘‘(iii) breaches any fiduciary duty; and 
‘‘(B) knowingly or recklessly causes a sub-
stantial loss to such regulated entity or a sub-
stantial pecuniary gain or other benefit to such 
party by reason of such violation, practice, or 
breach, 
shall forfeit and pay a civil penalty in an amount not 
to exceed the applicable maximum amount deter-
284
mined under paragraph (4) for each day during 
which such violation, practice, or breach continues. 
‘‘(4) MAXIMUM AMOUNTS OF PENALTIES FOR 
ANY VIOLATION DESCRIBED IN PARAGRAPH (3).—
The maximum daily amount of any civil penalty 
which may be assessed pursuant to paragraph (3) 
for any violation, practice, or breach described in 
such paragraph is—
‘‘(A) in the case of any person other than 
a regulated entity, an amount not to exceed 
$2,000,000; and 
‘‘(B) in the case of any regulated entity, 
$2,000,000.’’; 
(3) in subsection (c)(1)(B), by striking ‘‘enter-
prise, executive officer, or director’’ and inserting 
‘‘regulated 
entity 
or 
regulated 
entity-affiliated 
party’’; 
(4) in subsection (d), by striking the first sen-
tence and inserting the following: ‘‘If a regulated en-
tity or regulated entity-affiliated party fails to com-
ply with an order of the Director imposing a civil 
money penalty under this section, after the order is 
no longer subject to review as provided under sub-
section (c)(1) and section 1374, the Director may, in 
the discretion of the Director, bring an action in the
285
United States District Court for the District of Co-
lumbia, or the United States district court within 
the jurisdiction of which the headquarters of the reg-
ulated entity is located, to obtain a monetary judg-
ment against the regulated entity or regulated entity 
affiliated party and such other relief as may be 
available, or request that the Attorney General of 
the United States bring such an action.’’; and 
(5) in subsection (g), by striking ‘‘subsection 
(b)(3)’’ and inserting ‘‘this section, unless author-
ized by the Director by rule, regulation, or order’’. 
SEC. 166. REMOVAL AND PROHIBITION AUTHORITY. 
(a) IN GENERAL.—Subtitle C of title XIII of the 
Housing and Community Development Act of 1992 is 
amended—
(1) by redesignating sections 1377, 1378, 1379, 
1379A, and 1379B (12 U.S.C. 4637–41) as sections 
1379, 1379A, 1379B, 1379C, and 1379D, respec-
tively; and 
(2) by inserting after section 1376 (12 U.S.C. 
4636) the following new section: 
‘‘SEC. 1377. REMOVAL AND PROHIBITION AUTHORITY. 
‘‘(a) AUTHORITY TO ISSUE ORDER.—Whenever the 
Director determines that—
286
‘‘(1) any regulated entity-affiliated party has, 
directly or indirectly—
‘‘(A) 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 
‘‘(iv) any written agreement between 
such regulated entity and the Director; 
‘‘(B) engaged or participated in any unsafe 
or unsound practice in connection with any reg-
ulated entity; or 
‘‘(C) committed or engaged in any act, 
omission, or practice which constitutes a breach 
of such party’s fiduciary duty; 
‘‘(2) by reason of the violation, practice, or 
breach described in any subparagraph of paragraph 
(1)—
‘‘(A) such regulated entity has suffered or 
will probably suffer financial loss or other dam-
age; or
287
‘‘(B) such party has received financial gain 
or other benefit by reason of such violation, 
practice, or breach; and 
‘‘(3) such violation, practice, or breach—
‘‘(A) involves personal dishonesty on the 
part of such party; or 
‘‘(B) demonstrates willful or continuing 
disregard by such party for the safety or sound-
ness of such regulated entity, the Director may 
serve upon such party a written notice of the 
Director’s intention to remove such party from 
office or to prohibit any further participation by 
such party, in any manner, in the conduct of 
the affairs of any regulated entity. 
‘‘(b) SUSPENSION ORDER.—
‘‘(1) SUSPENSION
OR
PROHIBITION
AUTHOR-
ITY.—If the Director serves written notice under 
subsection (a) to any regulated entity-affiliated party 
of the Director’s intention to issue an order under 
such subsection, the Director may—
‘‘(A) suspend such party from office or 
prohibit such party from further participation 
in any manner in the conduct of the affairs of 
the regulated entity, if the Director—
288
‘‘(i) determines that such action is 
necessary for the protection of the regu-
lated entity; and 
‘‘(ii) serves such party with written 
notice of the suspension order; and 
‘‘(B) prohibit the regulated entity from re-
leasing to or on behalf of the regulated entity-
affiliated party any compensation or other pay-
ment of money or other thing of current or po-
tential value in connection with any resignation, 
removal, retirement, or other termination of 
employment or office of the party. 
‘‘(2) EFFECTIVE
PERIOD.—Any suspension 
order issued under this subsection—
‘‘(A) shall become effective upon service; 
and 
‘‘(B) unless a court issues a stay of such 
order under subsection (g) of this section, shall 
remain in effect and enforceable until—
‘‘(i) the date the Director dismisses 
the charges contained in the notice served 
under subsection (a) with respect to such 
party; or
289
‘‘(ii) the effective date of an order 
issued by the Director to such party under 
subsection (a). 
‘‘(3) COPY OF ORDER.—If the Director issues a 
suspension order under this subsection to any regu-
lated entity-affiliated party, the Director shall serve 
a copy of such order on any regulated entity with 
which such party is affiliated at the time such order 
is issued. 
‘‘(c) NOTICE, HEARING, AND ORDER.—A notice of 
intention to remove a regulated entity-affiliated party 
from office or to prohibit such party from participating 
in the conduct of the affairs of a regulated entity shall 
contain a statement of the facts constituting grounds for 
such action, and shall fix a time and place at which a hear-
ing will be held on such action. Such hearing shall be fixed 
for a date not earlier than 30 days nor later than 60 days 
after the date of service of such notice, unless an earlier 
or a later date is set by the Director at the request of 
(1) such party, and for good cause shown, or (2) the At-
torney General of the United States. Unless such party 
shall appear at the hearing in person or by a duly author-
ized representative, such party shall be deemed to have 
consented to the issuance of an order of such removal or 
prohibition. In the event of such consent, or if upon the