264 
include 
any 
requirement 
authorized 
under 
section 
1371(d).’’; 
(2) in subsection (b), by striking ‘‘enterprise, ex-
ecutive officer, or director’’ and inserting ‘‘regulated 
entity or regulated entity-affiliated party’’; 
(3) in subsection (d)— 
(A) by striking ‘‘An enterprise, executive of-
ficer, or director’’ and inserting ‘‘A regulated en-
tity or regulated entity-affiliated party’’; and 
(B) by striking ‘‘the enterprise, executive of-
ficer, or director’’ and inserting ‘‘the regulated 
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 reg-
ulated 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 obey, it shall 
be the duty of the court to issue such injunction.’’. 
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265 
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 applica-
tion 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 pro-
ceeding under subsection (a) without regard to the re-
quirement of such rule that the applicant show that 
the injury, loss, or damage is irreparable and imme-
diate. 
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266 
‘‘(2) STATE PROCEEDING.—If, in the case of any 
proceeding in a State court, the court determines 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 modi-
fied with respect to such proceeding by paragraph 
(1)), the relief sought under subsection (a) may be re-
quested under the laws of such State.’’. 
SEC. 164. ENFORCEMENT AND JURISDICTION. 
Section 1375 of the Housing and Community Develop-
ment 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 order and require 
compliance with such notice or order.’’; and 
(2) in subsection (b), by striking ‘‘or 1376’’ and 
inserting ‘‘1376, or 1377’’. 
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267 
SEC. 165. CIVIL MONEY PENALTIES. 
Section 1376 of the Housing and Community Develop-
ment 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 Fed-
eral 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 Home 
Loan Bank Act’’ before the semicolon at the 
end; 
(2) by striking subsection (b) and inserting the 
following new subsection: 
‘‘(b) AMOUNT OF PENALTY.— 
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‘‘(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, enforce com-
pliance with any housing goal established under 
subpart B of part 2 of subtitle A of this title, 
with section 1336 or 1337 of this title, with sub-
section (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 Federal Home Loan Mort-
gage 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; 
‘‘(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, 
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269 
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 paragraph 
(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 affairs 
of such regulated entity; or 
‘‘(iii) breaches any fiduciary duty; and 
‘‘(B) the violation, practice, or breach— 
‘‘(i) is part of a pattern of misconduct; 
‘‘(ii) causes or is likely to cause more 
than a minimal loss to such regulated enti-
ty; or 
‘‘(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. 
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270 
‘‘(3) THIRD TIER.—Notwithstanding paragraphs 
(1) and (2), any regulated entity which, or any regu-
lated 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 unsound 
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-
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 max-
imum daily amount of any civil penalty which may 
be assessed pursuant to paragraph (3) for any viola-
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271 
tion, 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 enti-
ty or regulated entity-affiliated party fails to comply 
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 subsection (c)(1) 
and section 1374, the Director may, in the discretion 
of the Director, bring an action in 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 lo-
cated, to obtain a monetary judgment against the reg-
ulated entity or regulated entity affiliated party and 
such other relief as may be available, or request that 
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272 
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 authorized 
by the Director by rule, regulation, or order’’. 
SEC. 166. REMOVAL AND PROHIBITION AUTHORITY. 
(a) IN GENERAL.—Subtitle C of title XIII of the Hous-
ing and Community Development Act of 1992 is amend-
ed— 
(1) by redesignating sections 1377, 1378, 1379, 
1379A, and 1379B (12 U.S.C. 4637–41) as sections 
1379, 1379A, 1379B, 1379C, and 1379D, respectively; 
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— 
‘‘(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; 
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273 
‘‘(iii) any condition imposed in writ-
ing 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 
‘‘(B) such party has received financial gain 
or other benefit by reason of such violation, prac-
tice, or breach; and 
‘‘(3) such violation, practice, or breach— 
‘‘(A) involves personal dishonesty on the 
part of such party; or 
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274 
‘‘(B) demonstrates willful or continuing dis-
regard by such party for the safety or soundness 
of such regulated entity, the Director may serve 
upon such party a written notice of the Direc-
tor’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 af-
fairs of any regulated entity. 
‘‘(b) SUSPENSION ORDER.— 
‘‘(1) SUSPENSION
OR
PROHIBITION
AUTHOR-
ITY.—If the Director serves written notice under sub-
section (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 pro-
hibit such party from further participation in 
any manner in the conduct of the affairs of the 
regulated entity, if the Director— 
‘‘(i) determines that such action is nec-
essary for the protection of the regulated en-
tity; 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-af-
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275 
filiated 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 em-
ployment 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 
‘‘(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 in-
tention to remove a regulated entity-affiliated party from 
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276 
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 ac-
tion, and shall fix a time and place at which a hearing 
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 Attorney Gen-
eral of the United States. Unless such party shall appear 
at the hearing in person or by a duly authorized representa-
tive, 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 record made at any 
such hearing the Director shall find that any of the grounds 
specified in such notice have been established, the Director 
may issue such orders of suspension or removal from office, 
or prohibition from participation in the conduct of the af-
fairs of the regulated entity, as it may deem appropriate, 
together with an order prohibiting compensation described 
in subsection (b)(1)(B). Any such order shall become effec-
tive at the expiration of 30 days after service upon such 
regulated entity and such party (except in the case of an 
order issued upon consent, which shall become effective at 
the time specified therein). Such order shall remain effective 
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277 
and enforceable except to such extent as it is stayed, modi-
fied, terminated, or set aside by action of the Director or 
a reviewing court. 
‘‘(d) PROHIBITION
OF CERTAIN SPECIFIC ACTIVI-
TIES.—Any person subject to an order issued under this sec-
tion shall not— 
‘‘(1) participate in any manner in the conduct 
of the affairs of any regulated entity; 
‘‘(2) solicit, procure, transfer, attempt to trans-
fer, vote, or attempt to vote any proxy, consent, or au-
thorization with respect to any voting rights in any 
regulated entity; 
‘‘(3) violate any voting agreement previously ap-
proved by the Director; or 
‘‘(4) vote for a director, or serve or act as a regu-
lated entity-affiliated party. 
‘‘(e) INDUSTRY-WIDE PROHIBITION.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), any person who, pursuant to an order 
issued under this section, has been removed or sus-
pended from office in a regulated entity or prohibited 
from participating in the conduct of the affairs of a 
regulated entity may not, while such order is in effect, 
continue or commence to hold any office in, or par-
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278 
ticipate in any manner in the conduct of the affairs 
of, any regulated entity. 
‘‘(2) EXCEPTION IF DIRECTOR PROVIDES WRIT-
TEN CONSENT.—If, on or after the date an order is 
issued under this section which removes or suspends 
from office any regulated entity-affiliated party or 
prohibits such party from participating in the con-
duct of the affairs of a regulated entity, such party 
receives the written consent of the Director, the order 
shall, to the extent of such consent, cease to apply to 
such party with respect to the regulated entity de-
scribed in the written consent. If the Director grants 
such a written consent, it shall publicly disclose such 
consent. 
‘‘(3) VIOLATION OF PARAGRAPH (1) TREATED AS 
VIOLATION OF ORDER.—Any violation of paragraph 
(1) by any person who is subject to an order described 
in such subsection shall be treated as a violation of 
the order. 
‘‘(f) APPLICABILITY.—This section shall only apply to 
a person who is an individual, unless the Director specifi-
cally finds that it should apply to a corporation, firm, or 
other business enterprise. 
‘‘(g) STAY OF SUSPENSION AND PROHIBITION OF REG-
ULATED ENTITY-AFFILIATED PARTY.—Within 10 days 
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after any regulated entity-affiliated party has been sus-
pended from office and/or prohibited from participation in 
the conduct of the affairs of a regulated entity under this 
section, such party may apply to the United States District 
Court for the District of Columbia, or the United States 
district court for the judicial district in which the head-
quarters of the regulated entity is located, for a stay of such 
suspension and/or prohibition and any prohibition under 
subsection (b)(1)(B) pending the completion of the adminis-
trative proceedings pursuant to the notice served upon such 
party under this section, and such court shall have jurisdic-
tion to stay such suspension and/or prohibition. 
‘‘(h) SUSPENSION OR REMOVAL OF REGULATED ENTI-
TY-AFFILIATED PARTY CHARGED WITH FELONY.— 
‘‘(1) SUSPENSION OR PROHIBITION.— 
‘‘(A) IN
GENERAL.—Whenever any regu-
lated entity-affiliated party is charged in any 
information, indictment, or complaint, with the 
commission of or participation in a crime in-
volving dishonesty or breach of trust which is 
punishable by imprisonment for a term exceed-
ing one year under State or Federal law, the Di-
rector may, if continued service or participation 
by such party may pose a threat to the regulated 
entity or impair public confidence in the regu-
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280 
lated entity, by written notice served upon such 
party— 
‘‘(i) suspend such party from office or 
prohibit such party from further participa-
tion in any manner in the conduct of the 
affairs of any regulated entity; and 
‘‘(ii) prohibit the regulated entity from 
releasing to or on behalf of the regulated en-
tity-affiliated party any compensation or 
other payment of money or other thing of 
current or potential value in connection 
with the period of any such suspension or 
with any resignation, removal, retirement, 
or other termination of employment or of-
fice of the party. 
‘‘(B) PROVISIONS
APPLICABLE
TO
NO-
TICE.— 
‘‘(i) COPY.—A copy of any notice 
under paragraph (1)(A) shall also be served 
upon the regulated entity. 
‘‘(ii) EFFECTIVE PERIOD.—A suspen-
sion or prohibition under subparagraph (A) 
shall remain in effect until the information, 
indictment, or complaint referred to in such 
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