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Title 12 — Banks and BankingRelease 119-73not60

§2262 Temporary Cease and Desist Orders

Title 12 › Chapter 23— FARM CREDIT SYSTEM › Subchapter V— FARM CREDIT ADMINISTRATION ORGANIZATION › Part C— Enforcement Powers of Farm Credit Administration › § 2262

Last updated Apr 3, 2026|Official source

Summary

The Farm Credit Administration can order a Farm Credit institution or people who run it to stop breaking rules or using unsafe business practices when those problems are likely to make the institution insolvent (unable to pay debts), use up a lot of its assets or earnings, seriously weaken it, or harm investors or shareholders before the agency finishes its formal case. That temporary order takes effect when it is served and stays in place while the agency’s proceedings continue, until the agency drops the charges, or until a final cease‑and‑desist order takes effect. Within 10 days after being served, the institution or any involved person can ask the U.S. district court for the district where the institution’s main office is located, or the U.S. District Court for the District of Columbia, to block, limit, or suspend the temporary order while the administrative process goes on. The court has the power to grant that request.

Full Legal Text

Title 12, §2262

Banks and Banking — Source: USLM XML via OLRC

(a)Whenever the Farm Credit Administration shall determine that the violation or threatened violation or the unsafe or unsound practice or practices, specified in the notice of charges served upon the institution or any director, officer, employee, agent, or other person participating in the conduct of the affairs of such institution under section 2261 of this title, or the continuation thereof, is likely to cause insolvency or substantial dissipation of assets or earnings of the institution, or is likely to seriously weaken the condition of the institution or otherwise seriously prejudice the interests of the investors in Farm Credit System obligations or shareholders in the institution prior to the completion of the proceedings conducted under section 2261 of this title, the Farm Credit Administration may issue a temporary order requiring the institution or such director, officer, employee, agent, or other person to cease and desist from any such violation or practice and to take affirmative action to prevent such insolvency, dissipation, condition, or prejudice pending completion of such proceedings. Such order shall become effective upon service upon the institution or such director, officer, employee, agent, or other person participating in the conduct of the affairs of such institution and, unless set aside, limited, or suspended by a court in proceedings authorized by subsection (b), shall remain effective and enforceable pending the completion of the administrative proceedings pursuant to such notice and until such time as the Farm Credit Administration shall dismiss the charges specified in such notice, or if a cease and desist order is issued against the institution or such director, officer, employee, agent, or other person, until effective date of such order.
(b)Within ten days after the institution concerned or any director, officer, employee, agent, or other person participating in the conduct of the affairs of such institution has been served with a temporary cease and desist order, the institution or such director, officer, employee, agent, or other person may apply to the United States district court for the judicial district in which the home office of the institution is located, or the United States district court for the District of Columbia, for an injunction setting aside, limiting, or suspending the enforcement, operation, or effectiveness of such order pending the completion of the administrative proceedings pursuant to the notice of charges served upon the institution or such director, officer, employee, agent, or other person under section 2261 of this title, and such court shall have jurisdiction to issue such injunction.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 5.26 of Pub. L. 92–181 was renumbered section 5.40 and is set out in part as notes under section 2001 of this title.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective thirty days after Dec. 23, 1985, see section 401 of Pub. L. 99–205, set out as an

Effective Date

of 1985 Amendment note under section 2001 of this title.

Reference

Citations & Metadata

Citation

12 U.S.C. § 2262

Title 12 — Banks and Banking

Last Updated

Apr 3, 2026

Release point: 119-73not60