---
kind: "section"
citation: "12 U.S.C. § 4642"
title: "12"
title_heading: "Banks and Banking"
number: "4642"
heading: "Reporting of fraudulent loans"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/4642"
units:
  - "Chapter 46 — Government Sponsored Enterprises"
  - "Subchapter III — Enforcement Provisions"
---

# §4642. Reporting of fraudulent loans

- (a) **Requirement to report—** The [Director](/usc/12/4502.md?p=9) shall require a [regulated entity](/usc/12/4502.md?p=20) to submit to the [Director](/usc/12/4502.md?p=9) a timely report upon discovery by the [regulated entity](/usc/12/4502.md?p=20) that it has purchased or sold a fraudulent loan or financial instrument, or suspects a possible fraud relating to the purchase or sale of any loan or financial instrument. The [Director](/usc/12/4502.md?p=9) shall require each [regulated entity](/usc/12/4502.md?p=20) to establish and maintain procedures designed to discover any such transactions.
- (b) **Protection from liability for reports—** Any [regulated entity](/usc/12/4502.md?p=20) that, in good faith, makes a report pursuant to [subsection (a)](#a), and any [entity-affiliated party](/usc/12/4502.md?p=11), that, in good faith, makes or requires another to make any such report, shall not be liable to any [person](/usc/12/5481.md?p=19) under any provision of law or regulation, any constitution, law, or regulation of any [State](/usc/12/4502.md?p=22) or political subdivision of any [State](/usc/12/4502.md?p=22), or under any contract or other legally enforceable agreement (including any arbitration agreement) for such report or for any failure to provide notice of such report to the [person](/usc/12/5481.md?p=19) who is the subject of such report or any other [persons](/usc/12/5481.md?p=19) identified in the report.

## Source credit

(Pub. L. 102–550, title XIII, § 1379E, as added Pub. L. 110–289, div. A, title I, § 1115, July 30, 2008, 122 Stat. 2681.)