12 U.S.C. § 2268: Penalty

Summary

Farms and people who run Farm Credit System institutions can be fined for breaking rules. If someone breaks a final enforcement order, the fine can be up to $1,000 for each day the break continues. For other violations of this chapter or its rules, the fine can be up to $500 per day. The Farm Credit Administration (FCA) can lower, change, or cancel fines. FCA will notify the institution or person about the alleged violations, ask for their views, and consider things like the size of the institution, good faith, how serious the violation was, and past problems when setting the amount. The fined party can ask for a hearing within 10 days of the penalty notice. If no hearing is asked for, the penalty becomes final and cannot be appealed. After a hearing, the penalty can be appealed to the U.S. court of appeals that covers the institution’s home office or to the D.C. Circuit by filing a notice within 20 days and sending a copy to FCA. If the final penalty is not paid, the Attorney General will sue in federal district court to collect it. FCA must make rules to carry out these steps, and all collected penalties go into the U.S. Treasury. Some FCA directives are treated like final orders for these rules.

Title 12, §2268

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(a)Forfeiture and payment; compromise, modification, or remitting by Farm Credit Administration; assessment and collection by written notice

Any institution in the System that violates or any officer, director, employee, agent, or other person participating in the conduct of the affairs of such an institution who violates the terms of any order that has become final and was issued under section 2261 or 2262 of this title, shall forfeit and pay a civil penalty of not more than $1,000 per day for each day during which such violation continues. Any such institution or person who violates any provision of this chapter or any regulation issued under this chapter shall forfeit and pay a civil penalty of not more than $500 per day for each day during which such violation continues. Notwithstanding the preceding sentences, the Farm Credit Administration may, in its discretion, compromise, modify, or remit any civil money penalty that is subject to imposition or has been imposed under such authority. The penalty may be assessed and collected by the Farm Credit Administration by written notice.

(b)Factors determining amount

Before determining whether to assess a civil money penalty and determining the amount of such penalty, the Farm Credit Administration shall notify the institution or person to be assessed of the violation or violations alleged to have occurred or to be occurring, and shall solicit the views of the institution or person regarding the imposition of such penalty. In determining the amount of the penalty, the Farm Credit Administration shall take into account the appropriateness of the penalty with respect to the size of financial resources and good faith of the System institution or person charged, the gravity of the violation, the history of previous violations, and such other matters as justice may require.

(c)Notice and hearing; final orders

The System institution or person assessed shall be afforded an opportunity for a hearing by the Farm Credit Administration, upon request made within ten days after issuance of the notice of assessment. In such hearing all issues shall be determined on the record pursuant to section 554 of title 5. The Farm Credit Administration determination shall be made by final order which may be reviewed only as provided in subsection (d). If no hearing is requested as herein provided, the assessment shall constitute a final and unappealable order.

(d)Judicial review

Any System institution or person against whom an order imposing a civil money penalty has been entered after a Farm Credit Administration hearing under this section may obtain review by the United States court of appeals for the circuit in which the home office of the System institution is located, or the United States Court of Appeals for the District of Columbia Circuit, by filing a notice of appeal in such court within twenty days after the service of such order, and simultaneously sending a copy of such notice by registered or certified mail to the Farm Credit Administration. The Farm Credit Administration shall promptly certify and file in such Court the record upon which the penalty was imposed, as provided in section 2112 of title 28. Final orders of the Farm Credit Administration issued under subsection (c) shall be reviewable under chapter 7 of title 5.

(e)Action by Attorney General to recover amount assessed

If any System institution or person fails to pay an assessment after it has become a final and unappealable order, or after the court of appeals has entered final judgment in favor of the Farm Credit Administration, the Farm Credit Administration shall refer the matter to the Attorney General, who shall recover the amount assessed by action in the appropriate United States district court. In such action, the validity and appropriateness of the final order imposing the penalty shall not be subject to review.

(f)Rules and regulations

The Farm Credit Administration shall promulgate regulations establishing procedures necessary to implement section 2267 of this title and this section.

(g)Payment into Treasury

All penalties collected under authority of this section shall be covered into the Treasury of the United States.

(h)Directives as final orders

For purposes of this section, any directive issued under section 2154(b)(2), 2154a(e), or 2202a(h) of this title shall be treated as an order that has become final and was issued under section 2261 of this title.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2018—Subsec. (h). Pub. L. 115–334 substituted “2202a(h)” for “2202a(i)”. 1988—Subsec. (a). Pub. L. 100–233, § 423(a), substituted “continues. Any such institution or person who violates any provision of this chapter or any regulation issued under this chapter shall forfeit and pay a civil penalty of not more than $500 per day for each day during which such violation continues. Notwithstanding the preceding sentences,” for “continues, but”. Subsec. (b). Pub. L. 100–233, § 423(b), inserted “Before determining whether to assess a civil money penalty and determining the amount of such penalty, the Farm Credit Administration shall notify the institution or person to be assessed of the violation or violations alleged to have occurred or to be occurring, and shall solicit the views of the institution or person regarding the imposition of such penalty.” Subsec. (d). Pub. L. 100–233, § 423(c), substituted “Final orders of the Farm Credit Administration issued under subsection (c) shall be reviewable under chapter 7 of title 5” for “The findings of the Farm Credit Administration shall be set aside if found to be unsupported by substantial evidence as provided by section 706(2)(E) of title 5”. Subsec. (f). Pub. L. 100–233, § 805(dd), substituted “section 2267 of this title and this section” for “section 2267 and 2268 of this title”. Subsec. (h). Pub. L. 100–233, § 804(a)(2), added subsec. (h).

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.

§2268 Penalty

Summary

Title 12, §2268

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata