---
kind: "section"
citation: "12 U.S.C. § 4636"
title: "12"
title_heading: "Banks and Banking"
number: "4636"
heading: "Civil money penalties"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/4636"
units:
  - "Chapter 46 — Government Sponsored Enterprises"
  - "Subchapter III — Enforcement Provisions"
---

# §4636. Civil money penalties

- (a) **In general—** The [Director](/usc/12/4502.md?p=9) may impose a civil money penalty in accordance with this section on any [regulated entity](/usc/12/4502.md?p=20) or any [entity-affiliated party](/usc/12/4502.md?p=11). The [Director](/usc/12/4502.md?p=9) shall not impose a civil penalty in accordance with this section on any [regulated entity](/usc/12/4502.md?p=20) or any [entity-affiliated party](/usc/12/4502.md?p=11) for any [violation](/usc/12/4502.md?p=25) that is addressed under [section 4585(a) of this title](/usc/12/4585.md?p=a).
- (b) **Amount of penalty—**
  - (1) **First tier—** A [regulated entity](/usc/12/4502.md?p=20) or [entity-affiliated party](/usc/12/4502.md?p=11) shall forfeit and pay a civil penalty of not more than $10,000 for each day during which a [violation](/usc/12/4502.md?p=25) continues, if such [regulated entity](/usc/12/4502.md?p=20) or party—
    - (A) violates any provision of this chapter, the [authorizing statutes](/usc/12/4502.md?p=3), or any order, condition, rule, or regulation under this chapter or any authorizing statute;
    - (B) violates any final or temporary order or notice issued pursuant to this chapter;
    - (C) violates any condition imposed in writing by the [Director](/usc/12/4502.md?p=9) in connection with the grant of any application or other request by such [regulated entity](/usc/12/4502.md?p=20); or
    - (D) violates any written agreement between the [regulated entity](/usc/12/4502.md?p=20) and the [Director](/usc/12/4502.md?p=9).
  - (2) **Second tier—** Notwithstanding [paragraph (1)](#b-1), a [regulated entity](/usc/12/4502.md?p=20) or [entity-affiliated party](/usc/12/4502.md?p=11) shall forfeit and pay a civil penalty of not more than $50,000 for each day during which a [violation](/usc/12/4502.md?p=25), practice, or breach continues, if—
    - (A) the [regulated entity](/usc/12/4502.md?p=20) or [entity-affiliated party](/usc/12/4502.md?p=11), respectively—
      - (i) commits any [violation](/usc/12/4502.md?p=25) described in any subparagraph of [paragraph (1)](#b-1);
      - (ii) recklessly engages in an unsafe or unsound practice in conducting the affairs of the [regulated entity](/usc/12/4502.md?p=20); or
      - (iii) breaches any fiduciary duty; and
    - (B) the [violation](/usc/12/4502.md?p=25), practice, or breach—
      - (i) is part of a pattern of misconduct;
      - (ii) causes or is likely to cause more than a minimal loss to the [regulated entity](/usc/12/4502.md?p=20); or
      - (iii) results in pecuniary gain or other benefit to such party.
  - (3) **Third tier—** Notwithstanding paragraphs [(1)](#b-1) and [(2)](#b-2), any [regulated entity](/usc/12/4502.md?p=20) or [entity-affiliated party](/usc/12/4502.md?p=11) shall forfeit and pay a civil penalty in an amount not to exceed the applicable maximum amount determined under [paragraph (4)](#b-4) for each day during which such [violation](/usc/12/4502.md?p=25), practice, or breach continues, if such [regulated entity](/usc/12/4502.md?p=20) or [entity-affiliated party](/usc/12/4502.md?p=11)—
    - (A) knowingly—
      - (i) commits any [violation](/usc/12/4502.md?p=25) described in any subparagraph of [paragraph (1)](#b-1);
      - (ii) engages in any unsafe or unsound practice in conducting the affairs of the [regulated entity](/usc/12/4502.md?p=20); or
      - (iii) breaches any fiduciary duty; and
    - (B) knowingly or recklessly causes a substantial loss to the [regulated entity](/usc/12/4502.md?p=20) or a substantial pecuniary gain or other benefit to such party by reason of such [violation](/usc/12/4502.md?p=25), practice, or breach.
  - (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)](#b-3) for any [violation](/usc/12/4502.md?p=25), practice, or breach described in [paragraph (3)](#b-3) is—
    - (A) in the case of any [entity-affiliated party](/usc/12/4502.md?p=11), an amount not to exceed $2,000,000; and
    - (B) in the case of any [regulated entity](/usc/12/4502.md?p=20), $2,000,000.
- (c) **Procedures—**
  - (1) **Establishment—** The [Director](/usc/12/4502.md?p=9) shall establish standards and procedures governing the imposition of civil money penalties under subsections [(a)](#a) and [(b)](#b). Such standards and procedures—
    - (A) shall provide for the [Director](/usc/12/4502.md?p=9) to notify the [regulated entity](/usc/12/4502.md?p=20) or [entity-affiliated party](/usc/12/4502.md?p=11) in writing of the [Director](/usc/12/4502.md?p=9)’s determination to impose the penalty, which shall be made on the record;
    - (B) shall provide for the imposition of a penalty only after the [regulated entity](/usc/12/4502.md?p=20), [executive officer](/usc/12/4502.md?p=12), or [director](/usc/12/4502.md?p=9) or [entity-affiliated party](/usc/12/4502.md?p=11) has been given an opportunity for a hearing on the record pursuant to [section 4633 of this title](/usc/12/4633.md); and
    - (C) may provide for review by the [Director](/usc/12/4502.md?p=9) of any determination or order, or interlocutory ruling, arising from a hearing.
  - (2) **Factors in determining amount of penalty—** In determining the amount of a penalty under this section, the [Director](/usc/12/4502.md?p=9) shall give consideration to such factors as the gravity of the [violation](/usc/12/4502.md?p=25), any history of prior [violations](/usc/12/4502.md?p=25), the effect of the penalty on the safety and soundness of the [regulated entity](/usc/12/4502.md?p=20), any injury to the public, any benefits received, and deterrence of future [violations](/usc/12/4502.md?p=25), and any other factors the [Director](/usc/12/4502.md?p=9) may determine by regulation to be appropriate.
  - (3) **Review of imposition of penalty—** The order of the [Director](/usc/12/4502.md?p=9) imposing a penalty under this section shall not be subject to review, except as provided in [section 4634 of this title](/usc/12/4634.md).
- (d) **Action to collect penalty—** If a [regulated entity](/usc/12/4502.md?p=20), [executive officer](/usc/12/4502.md?p=12), [director](/usc/12/4502.md?p=9), or [entity-affiliated party](/usc/12/4502.md?p=11) fails to comply with an order of the [Director](/usc/12/4502.md?p=9) imposing a civil money penalty under this section, after the order is no longer subject to review as provided under [subsection (c)(1)](#c-1), the [Director](/usc/12/4502.md?p=9) may 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](/usc/12/4502.md?p=20) is located, to obtain a monetary judgment against the [regulated entity](/usc/12/4502.md?p=20), [executive officer](/usc/12/4502.md?p=12), [director](/usc/12/4502.md?p=9), or [entity-affiliated party](/usc/12/4502.md?p=11) and such other relief as may be available. The monetary judgment may, in the discretion of the court, include any attorneys fees and other expenses incurred by the United States in connection with the action. In an action under this subsection, the validity and appropriateness of the order of the [Director](/usc/12/4502.md?p=9) imposing the penalty shall not be subject to review.
- (e) **Settlement by Director—** The [Director](/usc/12/4502.md?p=9) may compromise, modify, or remit any civil money penalty which may be, or has been, imposed under this section.
- (f) **Availability of other remedies—** Any civil money penalty under this section shall be in addition to any other available civil remedy and may be imposed whether or not the [Director](/usc/12/4502.md?p=9) imposes other administrative sanctions.
- (g) **Prohibition of reimbursement or indemnification—** A [regulated entity](/usc/12/4502.md?p=20) may not reimburse or indemnify any individual for any penalty imposed under [subsection (b)(3)](#b-3).
- (h) **Deposit of penalties—** The [Director](/usc/12/4502.md?p=9) shall deposit any civil money penalties collected under this section into the general fund of the Treasury.
- (i) **Applicability—** A penalty under this section may be imposed only for conduct or [violations](/usc/12/4502.md?p=25) under [subsection (a)](#a) occurring after October 28, 1992.

## Source credit

(Pub. L. 102–550, title XIII, § 1376, Oct. 28, 1992, 106 Stat. 3991; Pub. L. 110–289, div. A, title I, § 1155, July 30, 2008, 122 Stat. 2775.)

## Notes

### Editorial Notes

### References in Text

This chapter, referred to in subsec. (b)(1)(A), (B), was in the original “this title”, meaning title XIII of Pub. L. 102–550, Oct. 28, 1992, 106 Stat. 3941, which is classified principally to this chapter. For complete classification of title XIII to the Code, see Short Title note set out under section 4501 of this title and Tables.

### Amendments

2008—Subsec. (a). Pub. L. 110–289, § 1155(1), added subsec. (a) and struck out former subsec. (a) which related to violations or conduct for which the Director could impose a civil money penalty in accordance with this section.

Subsec. (b). Pub. L. 110–289, § 1155(2), added subsec. (b) and struck out former subsec. (b) which related to the amount of penalty the Director could impose for violations or conduct described in former subsection (a).

Subsec. (c)(1)(A). Pub. L. 110–289, § 1155(3)(A), (B), substituted “regulated entity” for “enterprise” and inserted “or entity-affiliated party” before “in writing”.

Subsec. (c)(1)(B). Pub. L. 110–289, § 1155(3)(A), (C), substituted “regulated entity” for “enterprise” and inserted “or entity-affiliated party” before “has been given”.

Subsec. (c)(2). Pub. L. 110–289, § 1155(3)(A), substituted “regulated entity” for “enterprise”.

Subsec. (d). Pub. L. 110–289, § 1155(4)(G), struck out “and section 4634 of this title” after “subsection (c)(1)”.

Pub. L. 110–289, § 1155(4)(F), which directed the striking out of “, or may, under the direction and control of the Attorney General of the United States, bring such an action”, was executed by striking out “, or may, under the direction and control of the Attorney General, bring such an action” after “may be available”, to reflect the probable intent of Congress.

Pub. L. 110–289, § 1155(4)(A)–(E), substituted “director, or entity-affiliated party” for “or director” in two places, “a regulated entity” for “an enterprise”, and “the regulated entity” for “the enterprise”, inserted “, or the United States district court within the jurisdiction of which the headquarters of the regulated entity is located,” after “District of Columbia”, and struck out “request the Attorney General of the United States to” after “Director may”.

Subsec. (g). Pub. L. 110–289, § 1155(5), substituted “A regulated entity” for “An enterprise”.