12 U.S.C. § 2271: Definitions

Summary

Defines key words used in this part. "Cease and desist order that has become final" and "order which has become final" mean an order from the Farm Credit Administration that is final because the institution or person agreed to it, no appeal was filed and perfected in a court of appeals as specified in section 2266(b), the court’s action cannot be reviewed further by the Supreme Court under section 2266(b), or it is an order issued under section 2265. "Violation" includes any act, alone or with others, to cause, help, take part in, advise, or assist a breach. "Institution in the System," "System institution," and "institution" mean the entities named in section 2002, any service organization chartered under part E of subchapter IV, and the Financial Assistance Corporation. "Institution-affiliated party" means a director, officer, employee, shareholder, or agent of a System institution; an independent contractor (for example, an attorney, appraiser, or accountant) who knowingly or recklessly joins in a law violation tied to System operations, breaches a fiduciary duty, or commits an unsafe act likely to cause more than a minimum loss or a significant adverse effect; and any other person the Farm Credit Administration says takes part in running a System institution. "Unsafe or unsound practice" means what the Farm Credit Administration defines by rule, and also any significant failure by a System institution to follow a term or condition set by the Farm Credit System Insurance Corporation under section 2277a–10.

Title 12, §2271

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As used in this part—

(1)the terms “cease and desist order that has become final” and “order which has become final” mean a cease and desist order, or an order, issued by the Farm Credit Administration with the consent of the System institution or the director or officer or other person concerned, or with respect to which no petition for review of the action of the Farm Credit Administration has been filed and perfected in a court of appeals as specified in section 2266(b) of this title, or with respect to which the action of the court in which such petition is so filed is not subject to further review by the Supreme Court of the United States in proceedings provided for in section 2266(b) of this title, or an order issued under section 2265 of this title;

(2)the term “violation” includes without limitation any action (alone or with another or others) for or toward causing, bringing about, participating in, counseling, or aiding or abetting a violation;

(3)the terms “institution in the System”, “System institution”, and “institution” mean all institutions enumerated in section 2002 of this title, any service organization chartered under part E of subchapter IV of this chapter, and the Financial Assistance Corporation;

(4)the term “institution-affiliated party” means—

(A)a director, officer, employee, shareholder, or agent of a System institution;

(B)an independent contractor (including an attorney, appraiser, or accountant) who knowingly or recklessly participates in—

(i)a violation of law (including regulations) that is associated with the operations and activities of 1 or more System institutions;

(ii)a breach of fiduciary duty; or

(iii)an unsafe practice that causes or is likely to cause more than a minimum financial loss to, or a significant adverse effect on, a System institution; and

(C)any other person, as determined by the Farm Credit Administration (by regulation or on a case-by-case basis) who participates in the conduct of the affairs of a System institution; and

(5)the term “unsafe or unsound practice” shall—

(A)have the meaning given to it by the Farm Credit Administration by regulation, rule, or order; and

(B)mean any significant noncompliance by a System institution (as determined by the Farm Credit Administration, in consultation with the Farm Credit System Insurance Corporation) with any term or condition imposed on the institution by the Farm Credit System Insurance Corporation under section 2277a–10 of this title.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2018—Pars. (4), (5). Pub. L. 115–334, § 5408, added par. (4) and redesignated former par. (4) as (5). Par. (5)(B), (C). Pub. L. 115–334, § 5411(34), redesignated subpar. (C) as (B), struck out “after

December 31, 1992,” before “mean any” and “by the Farm Credit System Assistance Board under section 2278a–6 of this title or” before “by the Farm Credit System Insurance Corporation”, and struck out former subpar. (B) which read as follows: “during the period beginning on

January 6, 1988, and ending

December 31, 1992, mean any noncompliance by a System institution, as determined by the Farm Credit Administration in consultation with the Assistance Board, with any term or condition imposed on the institution by the Assistance Board under section 2278a–6 of this title; and”. 1992—Par. (4)(C). Pub. L. 102–552 added subpar. (C). 1991—Par. (3). Pub. L. 102–237 substituted “part E” for “part D”. 1988—Par. (3). Pub. L. 100–233, § 207(d), substituted “Financial Assistance Corporation” for “Capital Corporation”. Par. (4). Pub. L. 100–233, § 203, amended par. (4) generally. Prior to amendment, par. (4) read as follows: “the term ‘unsafe or unsound practice’ shall have the meaning given to it by the Farm Credit Administration by

Regulations

, rule, or order.”

Statutory Notes and Related Subsidiaries

Effective Date

of 1991 AmendmentAmendment by Pub. L. 102–237 effective as if included in the provision of the Food, Agriculture, Conservation, and Trade Act of 1990, Pub. L. 101–624, to which the amendment relates, see section 1101(b)(4) of Pub. L. 102–237, set out as a note under section 1421 of Title 7, Agriculture.

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.

§2271 Definitions

Summary

Title 12, §2271

Notes & Related Subsidiaries

Editorial Notes

Amendments

Regulations

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Citations & Metadata