[Code of Federal Regulations] [Title 12, Volume 5, Parts 500 to 599] [Revised as of January 1, 2001] From the U.S. Government Printing Office via GPO Access [CITE: 12CFR509.103] [Page 38-39] TITLE 12--BANKS AND BANKING CHAPTER V--OFFICE OF THRIFT SUPERVISION, DEPARTMENT OF THE TREASURY PART 509--RULES OF PRACTICE AND PROCEDURE IN ADJUDICATORY PROCEEDINGS--Table of Contents Subpart B--Local Rules Sec. 509.103 Civil money penalties. (a) Assessment. In the event of consent, or if upon the record developed at the hearing the Office finds that any of the grounds specified in the notice issued pursuant to Sec. 509.18 of this part have been established, the Office may serve an order of assessment of civil money penalty upon the party concerned. The assessment order shall be effective immediately upon service or upon such other date as may be specified therein and shall remain effective and enforceable until it is stayed, modified, terminated, or set aside by the Office or by a reviewing court. (b) Payment. (1) Civil penalties assessed pursuant to subpart A of this part and this subpart B are payable and to be collected within 60 days after the issuance of the notice of assessment, unless the Office fixes a different time for payment where it determines that the purpose of the civil money penalty would be better served thereby; however, if a party has made a timely request for a hearing to challenge the assessment of the penalty, the party may not be required to pay such penalty until the Office has issued a final order of assessment following the hearing. In such instances, the penalty shall be paid within 60 days of service of such order unless the Office fixes a different time for payment. Notwithstanding the foregoing, the Office may seek to attach the party's assets or to have a receiver appointed to secure payment of the potential civil money penalty or other obligation in advance of the hearing in accordance with section 8(i)(4) of the FDIA (12 U.S.C. 1818(i)(4)). (2) Checks in payment of civil penalties shall be made payable to the Treasurer of the United States and sent to the Controller's Division of the Office. Upon receipt, the Office shall forward the check to the Treasury of the United States. (c) Inflation adjustment. Under the Federal Civil Monetary Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note), OTS must adjust for inflation the civil monetary penalties in statutes that it administers. The following chart displays the adjusted civil money penalties. The amounts in this chart apply to violations that occur after October 17, 2000: ------------------------------------------------------------------------ New maximum U.S. Code citation CMP description amount ------------------------------------------------------------------------ 12 U.S.C. 1464(v)(4)............... Reports of $2,200 Condition--1st Tier. 12 U.S.C. 1464(v)(5)............... Reports of 22,000 Condition--2nd Tier. 12 U.S.C. 1464(v)(6)............... Reports of 1,175,000 Condition--3rd Tier. 12 U.S.C. 1467(d).................. Refusal to 5,500 Cooperate in Exam. 12 U.S.C. 1467a(i)(2).............. Holding Company 27,500 Act Violation. 12 U.S.C. 1467a(i)(3).............. Holding Company 27,500 Act Violation. 12 U.S.C. 1467a(r)(1).............. Late/Inaccurate 2,200 Reports--1st Tier. 12 U.S.C. 1467a(r)(2).............. Late/Inaccurate 22,000 Reports--2nd Tier. 12 U.S.C. 1467a(r)(3).............. Late/Inaccurate 1,175,000 Reports--3rd Tier. 12 U.S.C. 1817(j)(16)(A)........... Change in Control-- 5,500 1st Tier. 12 U.S.C. 1817(j)(16)(B)........... Change in Control-- 27,500 2nd Tier. 12 U.S.C. 1817(j)(16)(C)........... Change in Control-- 1,175,000 3rd Tier. 12 U.S.C. 1818(i)(2)(A)............ Violation of Law 5,500 or Unsafe or Unsound Practice-- 1st Tier. 12 U.S.C. 1818(i)(2)(B)............ Violation of Law 27,500 or Unsafe or Unsound Practice-- 2nd Tier. 12 U.S.C. 1818(i)(2)(C)............ Violation of Law 1,175,000 or Unsafe or Unsound Practice-- 3rd Tier. 12 U.S.C. 1884..................... Violation of 110 Security Rules. 12 U.S.C. 3349(b).................. Appraisals 5,500 Violation--1st Tier. 12 U.S.C. 3349(b).................. Appraisals 27,500 Violation--2nd Tier. 12 U.S.C. 3349(b).................. Appraisals 1,175,000 Violation--3rd Tier. [[Page 39]] 42 U.S.C. 4012a(f)................. Flood Insurance... 350/115,000 ------------------------------------------------------------------------ [56 FR 38306, Aug. 12, 1991, as amended at 65 FR 61262, Oct. 17, 2000]