under this section shall also be served upon the interested 
licensee. 
(f) PROCEDURAL PROVISIONS; JUDICIAL REVIEW.— 
(1) HEARING
VENUE.—Any hearing provided 
for in this section shall be— 
(A) held in the Federal judicial district or 
in the territory in which the principal office of 
the licensee is located, unless the party afforded 
the hearing consents to another place; and 
(B) conducted in accordance with the pro-
visions of chapter 5 of title 5, United States 
Code. 
(2) ISSUANCE
OF
ORDERS.—After a hearing 
provided for in this section, and not later than 90 
days after the Secretary has notified the parties that 
the case has been submitted for final decision, the 
Secretary shall render a decision in the matter 
(which shall include findings of fact upon which its 
decision is predicated), and shall issue and cause to 
be served upon each party to the proceeding an 
order or orders consistent with the provisions of this 
section. 
(3) AUTHORITY TO MODIFY ORDERS.—The Sec-
retary may modify, terminate, or set aside any order 
issued under this section— 
VerDate Sep 11 2014 
01:19 May 31, 2025
Jkt 059200
PO 00000
Frm 00076
Fmt 6652
Sfmt 6201
E:\BILLS\H3248.IH
H3248
ssavage on LAPJG3WLY3PROD with BILLS
(A) at any time, upon such notice, and in 
such manner as the Secretary deems proper, 
unless a petition for review is timely filed in a 
court of appeals of the United States, as pro-
vided in paragraph (4)(B), and thereafter until 
the record in the proceeding has been filed in 
accordance with paragraph (4)(C); and 
(B) upon such filing of the record, with 
permission of the court. 
(4) JUDICIAL REVIEW.— 
(A) IN GENERAL.—Judicial review of an 
order issued under this section shall be exclu-
sively as provided in this paragraph. 
(B) PETITION FOR REVIEW.—Any party to 
a hearing provided for in this section may ob-
tain a review of any order issued pursuant to 
paragraph (2) (other than an order issued with 
the consent of the management official con-
cerned, or an order issued under subsection 
(d)), by filing in the court of appeals of the 
United States for the circuit in which the prin-
cipal office of the licensee is located, or in the 
United States Court of Appeals for the District 
of Columbia Circuit, not later than 30 days 
after the date of service of such order, a written 
VerDate Sep 11 2014 
01:19 May 31, 2025
Jkt 059200
PO 00000
Frm 00077
Fmt 6652
Sfmt 6201
E:\BILLS\H3248.IH
H3248
ssavage on LAPJG3WLY3PROD with BILLS
petition praying that the order of the Secretary 
be modified, terminated, or set aside. 
(C) NOTIFICATION
TO
DEPARTMENT.—A 
copy of a petition filed under subparagraph (B) 
shall be forthwith transmitted by the clerk of 
the court to the Secretary, and thereupon the 
Secretary shall file in the court the record in 
the proceeding, as provided in section 2112 of 
title 28, United States Code. 
(D) COURT JURISDICTION.—Upon the fil-
ing of a petition under subparagraph (A)— 
(i) the court shall have jurisdiction, 
which, upon the filing of the record under 
subparagraph (C), shall be exclusive, to af-
firm, modify, terminate, or set aside, in 
whole or in part, the order of the Sec-
retary; 
(ii) review of such proceedings shall 
be had as provided in chapter 7 of title 5, 
United States Code; and 
(iii) the judgment and decree of the 
court shall be final, except that the judg-
ment and decree shall be subject to review 
by the Supreme Court of the United States 
VerDate Sep 11 2014 
01:19 May 31, 2025
Jkt 059200
PO 00000
Frm 00078
Fmt 6652
Sfmt 6201
E:\BILLS\H3248.IH
H3248
ssavage on LAPJG3WLY3PROD with BILLS
upon certiorari, as provided in section 
1254 of title 28, United States Code. 
(E) JUDICIAL REVIEW NOT A STAY.—The 
commencement of proceedings for judicial re-
view under this paragraph shall not, unless spe-
cifically ordered by the court, operate as a stay 
of any order issued by the Secretary under this 
section. 
SEC. 18. UNLAWFUL ACTS AND OMISSIONS BY OFFICERS, 
DIRECTORS, 
EMPLOYEES, 
OR 
AGENTS; 
BREACH OF FIDUCIARY DUTY. 
(a) IN GENERAL.—Wherever a licensee violates any 
provision of this Act or regulation issued thereunder by 
reason of the failure of the licensee to comply with the 
terms thereof or by reason of the licensee engaging in any 
act or practice which constitutes or will constitute a viola-
tion thereof, such violation shall be deemed to be also a 
violation and an unlawful act on the part of any person 
who, directly or indirectly, authorizes, orders, participates 
in, or causes, brings about, counsels, aids, or abets in the 
commission of any acts, practices, or transactions which 
constitute or will constitute, in whole or in part, such vio-
lation. 
(b) UNLAWFUL ACTS.— 
VerDate Sep 11 2014 
01:19 May 31, 2025
Jkt 059200
PO 00000
Frm 00079
Fmt 6652
Sfmt 6201
E:\BILLS\H3248.IH
H3248
ssavage on LAPJG3WLY3PROD with BILLS
(1) PROHIBITION.—It shall be unlawful for any 
officer, director, employee, agent, or other partici-
pant in the management or conduct of the affairs of 
a licensee to engage in any act or practice, or to 
omit any act, in breach of his fiduciary duty as such 
officer, director, employee, agent, or participant, if, 
as a result thereof, the licensee has suffered or is in 
imminent danger of suffering financial loss or other 
damage. 
(2) SPECIFIC
ACTS
AND
OMISSIONS.—Except 
with the written consent of the Secretary, it shall be 
unlawful— 
(A) for any person hereafter to take office 
as an officer, director, or employee of a licensee, 
or to become an agent or participant in the con-
duct of the affairs or management of a licensee, 
if— 
(i) the person has been convicted of a 
felony, or any other criminal offense in-
volving dishonesty or breach of trust; or 
(ii) the person has been found civilly 
liable in damages, or has been permanently 
or temporarily enjoined by an order, judg-
ment, or decree of a court of competent ju-
VerDate Sep 11 2014 
01:19 May 31, 2025
Jkt 059200
PO 00000
Frm 00080
Fmt 6652
Sfmt 6201
E:\BILLS\H3248.IH
H3248
ssavage on LAPJG3WLY3PROD with BILLS
risdiction, by reason of any act or practice 
involving fraud or breach of trust; or 
(B) for any person to continue to serve in 
any of the above described capacities, if— 
(i) the person is hereafter convicted of 
a felony, or any other criminal offense in-
volving dishonesty or breach of trust; or 
(ii) the person is hereafter found civ-
illy liable in damages or is permanently or 
temporarily enjoined by an order, judg-
ment, or decree of a court of competent ju-
risdiction, by reason of any act or practice 
involving fraud or breach of trust. 
SEC. 19. PENALTIES AND FORFEITURES. 
(a) PENALTIES.— 
(1) IN GENERAL.—Except as provided in sub-
section (b), a licensee that violates any regulation or 
written directive issued by the Secretary issued 
under this Act, requiring the filing of any regular or 
special report pursuant to section 12, shall forfeit 
and pay to the United States a civil penalty of not 
more than $100 for each day of the continuance of 
the failure by the licensee to file such report, unless 
it is shown that such failure is due to reasonable 
cause and not due to willful neglect. 
VerDate Sep 11 2014 
01:19 May 31, 2025
Jkt 059200
PO 00000
Frm 00081
Fmt 6652
Sfmt 6201
E:\BILLS\H3248.IH
H3248
ssavage on LAPJG3WLY3PROD with BILLS
(2) ACCRUAL.—Any civil penalty under para-
graph (1) shall accrue to the United States and may 
be recovered in a civil action brought by the Sec-
retary. 
(b) ENFORCEMENT.—The Secretary may— 
(1) by rules and regulations, or upon applica-
tion of an interested party, at any time previous to 
such failure, by order, after notice and opportunity 
for hearing, exempt in whole or in part, any licensee 
from the provisions of subsection (a) of this section, 
upon such terms and conditions and for such period 
of time as the Secretary deems necessary and appro-
priate, if the Secretary funds that such action is not 
inconsistent with the public interest or the protec-
tion of the Department; and 
(2) for the purposes of this section make any 
alternative requirements appropriate to the situa-
tion. 
SEC. 20. JURISDICTION AND SERVICE OF PROCESS. 
Any suit or action brought under section 13, 15, 17, 
19, or 23 by the Department at law or in equity to enforce 
any liability or duty created by, or to enjoin any violation 
of this Act, or any rule, regulation, or order promulgated 
thereunder, shall be brought in the district wherein the 
licensee maintains its principal office, and process in such 
VerDate Sep 11 2014 
01:19 May 31, 2025
Jkt 059200
PO 00000
Frm 00082
Fmt 6652
Sfmt 6201
E:\BILLS\H3248.IH
H3248
ssavage on LAPJG3WLY3PROD with BILLS
cases may be served in any district in which the defendant 
maintains its principal office or transacts business, or 
wherever the defendant may be found. 
SEC. 21. ISSUANCE AND GUARANTEE OF TRUST CERTIFI-
CATES. 
(a) AUTHORITY TO ISSUE TRUST CERTIFICATES.— 
The Secretary may issue trust certificates representing 
ownership of all or a fractional part of debentures issued 
by licensees and guaranteed by the Department under this 
Act, provided that the trust certificates shall be based on 
and backed by a trust or pool approved by the Secretary 
and composed solely of guaranteed debentures. 
(b) GUARANTEE AUTHORITY.— 
(1) IN
GENERAL.—The Secretary may, upon 
such terms and conditions as are deemed appro-
priate, to guarantee the timely payment of the prin-
cipal of and interest on trust certificates issued by 
the Department or its agent for purposes of this sec-
tion. 
(2) LIMITATION.—Such guarantee shall be lim-
ited to the extent of principal and interest on the 
guaranteed debentures which compose the trust or 
pool. 
(3) REDUCTION OF GUARANTEE.—In the event 
that a debenture in such trust or pool is prepaid, ei-
VerDate Sep 11 2014 
01:19 May 31, 2025
Jkt 059200
PO 00000
Frm 00083
Fmt 6652
Sfmt 6201
E:\BILLS\H3248.IH
H3248
ssavage on LAPJG3WLY3PROD with BILLS
ther voluntarily or involuntarily, or in the event of 
default of a debenture, the guarantee of timely pay-
ment of principal and interest on the trust certifi-
cates shall be reduced in proportion to the amount 
of principal and interest such prepaid debenture and 
priority payments represent in the trust or pool. 
(4) INTEREST.—Interest on prepaid or de-
faulted debentures shall accrue and be guaranteed 
by the Department only through the date of pay-
ment on the guarantee. 
(5) REDEMPTION.—During the term of the 
trust certificate, it may be called for redemption due 
to prepayment or default of all debentures. 
(c) FULL FAITH AND CREDIT.—The full faith and 
credit of the United States is pledged to the payment of 
all amounts that may be required to be paid under any 
guarantee of such trust certificates issued by the Sec-
retary pursuant to this section. 
(d) FEES.—The Secretary may not collect a fee for 
any guarantee under this section, provided that nothing 
herein shall preclude any agent of the Department from 
collecting a fee approved by the Department for the func-
tions described in subsection (f)(2). 
(e) RIGHTS OF THE DEPARTMENT.— 
VerDate Sep 11 2014 
01:19 May 31, 2025
Jkt 059200
PO 00000
Frm 00084
Fmt 6652
Sfmt 6201
E:\BILLS\H3248.IH
H3248
ssavage on LAPJG3WLY3PROD with BILLS
(1) SUBROGATION.—In the event the Secretary 
pays a claim under a guarantee issued under this 
section, it shall be subrogated fully to the rights sat-
isfied by such payment. 
(2) OWNERSHIP
RIGHTS.—No State or local 
law, and no Federal law, shall preclude or limit the 
exercise by the Secretary of the ownership rights of 
the Secretary in the debentures residing in a trust 
or pool against which trust certificates are issued. 
(f) RESPONSIBILITIES.— 
(1) REGISTRATION.—The Secretary shall pro-
vide for a central registration of all trust certificates 
sold pursuant to this section. 
(2) CONTRACTS.—The Secretary shall contract 
with an agent or agents to carry out, on behalf of 
the Department, the pooling and the central reg-
istration functions of this section including, notwith-
standing any other provision of law, maintenance on 
behalf of and under the direction of the Department, 
such commercial bank accounts or investments in 
obligations of the United States as may be necessary 
to facilitate trusts or pools backed by guaranteed 
under this Act, and the issuance of trust certificates 
to facilitate such poolings. Such agent or agents 
shall provide a fidelity bond or insurance in such 
VerDate Sep 11 2014 
01:19 May 31, 2025
Jkt 059200
PO 00000
Frm 00085
Fmt 6652
Sfmt 6201
E:\BILLS\H3248.IH
H3248
ssavage on LAPJG3WLY3PROD with BILLS
amounts as the Secretary determines to be necessary 
to fully protect the interests of the Government. 
(3) DISCLOSURES.—Before any sale of a trust 
certificate, the Secretary shall require the seller to 
disclose to a purchaser of a trust certificate issued 
pursuant to this section, information on the terms, 
conditions, and yield of such instrument. 
(4) REGULATION
OF
BROKERS
AND
DEAL-
ERS.—The Secretary is authorized to regulate bro-
kers and dealers in trust certificates sold pursuant 
to this section. 
(5) RULE OF CONSTRUCTION.—Nothing in this 
subsection shall prohibit the use of a book entry or 
other electronic form of registration for trust certifi-
cates. 
SEC. 22. PERIODIC ISSUANCE OF GUARANTEES AND TRUST 
CERTIFICATES. 
The Secretary shall issue guarantees under section 
7 and trust certificates under section 21 at periodic inter-
vals of not less than every 12 months and shall do so at 
such shorter intervals as the Secretary deems appropriate, 
taking into consideration the amount and number of such 
guarantees or trust certificates. 
VerDate Sep 11 2014 
01:19 May 31, 2025
Jkt 059200
PO 00000
Frm 00086
Fmt 6652
Sfmt 6201
E:\BILLS\H3248.IH
H3248
ssavage on LAPJG3WLY3PROD with BILLS