Sec. 302. Personal liability of executive officers and directors of the board for Federal consumer protection law violations
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/bill/115/hr/3937/ih/section-302·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
If an executive officer or director of the board of a national bank, Federal savings association, or federally insured State depository institution affiliated with a global systemically important bank holding company, or United States branch, agency, commercial lending company, or representative office of a foreign bank affiliated with a global systemically important bank holding company, knowingly violates any Federal consumer protection law (or directs any of the agents, officers, or directors of the institution to so violate or engage), such executive officer or director shall be liable in their personal and individual capacity for damages which the institution or any other person shall have sustained in consequence of such violation or engagement.
Any fines under this subsection shall not be deemed to limit the relevant Federal regulator or law enforcement entity’s authority to impose civil penalties, fines, or other appropriate consumer redress on the institution. Except as otherwise provided by law, a civil action arising under this section may not be commenced after the later of— 2 years after the discovery of the facts constituting the violation; or 5 years after such violation. Any executive officer or director of the board who knowingly causes a national bank, Federal savings association, or federally insured State depository institution affiliated with a global systemically important bank holding company, or United States branch, agency, or representative office of a foreign bank affiliated with a global systemically important bank holding company to violate any Federal consumer protection law (or who directs another agent, senior officer, or director of the institution to commit such a violation or engage in such acts that result in the director or officer being personally unjustly enriched and the institution being conducted in an unsafe and unsound manner) shall be— fined in an amount not to exceed 100 percent of the compensation (including stock options awarded as compensation) received by such officer or director from the institution— during the time period in which the violations occurred; or in the one to three year time period preceding the date on which the violations were discovered; and imprisoned for not more than 5 years.
If an executive officer or director of the board of a national bank, Federal savings association, or federally insured State depository institution affiliated with a global systemically important bank holding company, or United States branch, agency, commercial lending company, or representative office of a foreign bank affiliated with a global systemically important bank holding company commits a violation or engages in an act described under subsection
(a)or is convicted of a violation or of engaging in an act described under subsection (b), the Comptroller, the Corporation, or the Board of Governors, as applicable, shall notify within 24 hours the institution that such executive, director, or senior officer must be terminated from their position with the institution and be permanently prohibited from engaging in the operation and management of any other federally chartered or federally insured banking organization, pursuant to section 8(e) of the Federal Deposit Insurance Act ( 12 U.S.C. 1818(e) ).
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Sec. 302
Personal liability of executive officers and directors of the board for Federal consumer protection law violations
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