U.S. Code > Title 12 Banks and Banking > CHAPTER 46—GOVERNMENT SPONSORED ENTERPRISES (§§ 4501—4642) > SUBCHAPTER III—ENFORCEMENT PROVISIONS (§§ 4631—4642) > § 4632. Temporary cease-and-desist orders

§ 4632. Temporary cease-and-desist orders

(a) Grounds for issuance
(1) In general
If the Director determines that the actions specified in the notice of charges served upon a regulated entity or any entity-affiliated party pursuant to section 4631 (a) of this title, or the continuation thereof, is likely to cause insolvency or significant dissipation of assets or earnings of that entity, or is likely to weaken the condition of that entity prior to the completion of the proceedings conducted pursuant to sections 4631 and 4633 of this title, the Director may—
(A) issue a temporary order requiring that regulated entity or entity-affiliated party to cease and desist from any such violation or practice; and
(B) require that regulated entity or entity-affiliated party to take affirmative action to prevent or remedy such insolvency, dissipation, condition, or prejudice pending completion of such proceedings.
(2) Additional requirements
An order issued under paragraph (1) may include any requirement authorized under subsection 4631(d) of this title.
(b) Effective date
An order issued pursuant to subsection (a) of this section shall become effective upon service upon the regulated entity, executive officer, director, or entity-affiliated party and, unless set aside, limited, or suspended by a court in proceedings pursuant to subsection (d) of this section, shall remain in effect and enforceable pending the completion of the proceedings pursuant to such notice and shall remain effective until the Director dismisses the charges specified in the notice or until superseded by a cease-and-desist order issued pursuant to section 4631 of this title.
(c) Incomplete or inaccurate records
(1) Temporary order
If a notice of charges served under section 4631 (a) or (b) of this title specifies on the basis of particular facts and circumstances that the books and records of the regulated entity served are so incomplete or inaccurate that the Director is unable, through the normal supervisory process, to determine the financial condition of the regulated entity or the details or the purpose of any transaction or transactions that may have a material effect on the financial condition of that regulated entity, the Director may issue a temporary order requiring—
(A) the cessation of any activity or practice which gave rise, whether in whole or in part, to the incomplete or inaccurate state of the books or records; or
(B) affirmative action to restore the books or records to a complete and accurate state.
(2) Effective period
Any temporary order issued under paragraph (1)—
(A) shall become effective upon service; and
(B) unless set aside, limited, or suspended by a court in proceedings pursuant to subsection (d) of this section, shall remain in effect and enforceable until the earlier of—
(i) the completion of the proceeding initiated under section 4631 of this title in connection with the notice of charges; or
(ii) the date the Director determines, by examination or otherwise, that the books and records of the regulated entity are accurate and reflect the financial condition of the regulated entity.
(d) Judicial review
A regulated entity, executive officer, director, or entity-affiliated party that has been served with a temporary order pursuant to this section may apply to the United States District Court for the District of Columbia within 10 days after such service for an injunction setting aside, limiting, or suspending the enforcement, operation, or effectiveness of the order pending the completion of the administrative proceedings pursuant to the notice of charges served upon the enterprise, executive officer, director, or entity-affiliated party under section 4631 (a) or (b) of this title. Such court shall have jurisdiction to issue such injunction.
(e) Enforcement by Attorney General
In the case of violation or threatened violation of, or failure to obey, a temporary order issued pursuant to this section, the Director may bring an action in the United States District Court for the District of Columbia for an injunction to enforce such order. If the court finds any such violation, threatened violation, or failure to obey, the court shall issue such injunction.