
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 12USC4542]

 
                       TITLE 12--BANKS AND BANKING
 
              CHAPTER 46--GOVERNMENT SPONSORED ENTERPRISES
 
         SUBCHAPTER I--SUPERVISION AND REGULATION OF ENTERPRISES
 
                     Part B--Authority of Secretary
 
                      subpart 1--general authority
 
Sec. 4542. Prior approval authority for new programs


(a) Authority

    The Secretary shall require each enterprise to obtain the approval 
of the Secretary for any new program of the enterprise before 
implementing the program.

(b) Standard for approval

                       (1) Permanent standard

        Except as provided in paragraph (2), the Secretary shall approve 
    any new program of an enterprise for purposes of subsection (a) of 
    this section unless--
            (A) for a new program of the Federal National Mortgage 
        Association, the Secretary determines that the program is not 
        authorized under paragraph (2), (3), (4), or (5) of section 
        1717(b) of this title, or under section 1719 of this title;
            (B) for a new program of the Federal Home Loan Mortgage 
        Corporation, the Secretary determines that the program is not 
        authorized under section 1454(a)(1), (4), or (5) of this title; 
        or
            (C) the Secretary determines that the new program is not in 
        the public interest.

                       (2) Transition standard

        Before the date occurring 12 months after the date of the 
    effectiveness of the regulations under section 4611(e) of this title 
    establishing the risk-based capital test, the Secretary shall 
    approve any new program of an enterprise for purposes of subsection 
    (a) of this section unless--
            (A) The \1\ Secretary makes a determination as described in 
        paragraph (1)(A), (B), or (C); or
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    \1\ So in original. Probably should not be capitalized.
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            (B) the Director determines that the new program would risk 
        significant deterioration of the financial condition of the 
        enterprise.

(c) Procedure for approval

                      (1) Submission of request

        To obtain the approval of the Secretary for purposes of 
    subsection (a) of this section, an enterprise shall submit to the 
    Secretary a written request for approval of the new program that 
    describes the program.

                            (2) Response

        The Secretary shall, not later than the expiration of the 45-day 
    period beginning upon the submission of a request for approval, 
    approve the request or submit to the Committee on Banking, Finance 
    and Urban Affairs of the House of Representatives and the Committee 
    on Banking, Housing, and Urban Affairs of the Senate a report 
    explaining the reasons for not approving the request. The Secretary 
    may extend such period for a single additional 15-day period only if 
    the Secretary requests additional information from the enterprise.

                       (3) Failure to respond

        If the Secretary fails to approve the request or fails to submit 
    a report under paragraph (2) during the period under such paragraph, 
    the request shall be considered to have been approved.

                      (4) Review of disapproval

        (A) Unauthorized new programs

            If the Secretary submits a report under paragraph (2) of 
        this subsection disapproving a request for approval on the 
        grounds under subparagraph (A) or (B) of subsection (b)(1) of 
        this section, the Secretary shall provide the enterprise 
        submitting the request with a timely opportunity to review and 
        supplement the administrative record.

        (B) New programs not in public interest

            If the Secretary submits a report under paragraph (2) of 
        this subsection disapproving a request for approval on the 
        grounds under subsection (b)(1)(C) or (b)(2)(B) of this section, 
        the Secretary shall provide the enterprise submitting the 
        request notice of, and opportunity for, a hearing on the record 
        regarding such disapproval.

(Pub. L. 102-550, title XIII, Sec. 1322, Oct. 28, 1992, 106 Stat. 3953.)

                         Change of Name

    Committee on Banking, Finance and Urban Affairs of House of 
Representatives treated as referring to Committee on Banking and 
Financial Services of House of Representatives by section 1(a) of Pub. 
L. 104-14, set out as a note preceding section 21 of Title 2, The 
Congress. Committee on Banking and Financial Services of House of 
Representatives abolished and replaced by Committee on Financial 
Services of House of Representatives, and jurisdiction over matters 
relating to securities and exchanges and insurance generally transferred 
from Committee on Energy and Commerce of House of Representatives by 
House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001.

                  Section Referred to in Other Sections

    This section is referred to in sections 1454, 1717, 4617 of this 
title.
