§2268 — Title 12 Banks and Banking | U.S. Code

Summary

If a Farm Credit System institution or anyone running it breaks a final order issued under sections 2261 or 2262, they must pay up to $1,000 for each day the break continues. If they break any other rule in this chapter or a regulation under it, they must pay up to $500 per day. The Farm Credit Administration (FCA) can reduce, change, or wipe out these penalties and will send a written notice to assess them. Before deciding a penalty, the FCA must tell the institution or person what violations are alleged and ask for their side. The FCA will consider the size of the institution’s resources, whether it acted in good faith, how serious the violation was, past violations, and other fair factors. The institution or person has 10 days after the notice to ask for a hearing. After a hearing, they can appeal to the U.S. Court of Appeals for the circuit of the institution’s home office or the D.C. Circuit by filing a notice within 20 days and mailing a copy to the FCA. If a final order is not paid, the FCA will ask the Attorney General to sue to collect the penalty. The FCA must make rules to carry this out, and all collected penalties go to the U.S. Treasury. Certain directives listed in the law count as final orders for the $1,000 daily penalty.

Title 12, §2268

Banks and Banking — Source: USLM XML via OLRC

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

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

(h)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