§2277a–14 Prohibitions

Summary

No one may use the name "Farm Credit System Insurance Corporation" or a similar name to make people think they are connected to the Corporation. Nobody may falsely say their notes, bonds, or other debts are insured or guaranteed by the Corporation. Insured System banks may not mislead people about how their obligations are insured. Willful violations can bring a fine of up to $1,000, up to 1 year in jail, or both. Insured System banks must not pay dividends, interest (when it comes only from net profits), or give out capital while they are behind on premiums to the Corporation. Directors or officers who willfully take part in such payments face the same criminal penalty. If the bank disputes the premium but puts up acceptable security for payment, these rules do not apply. Banks that willfully fail to file required statements or pay premiums can be fined up to $100 per day. Someone convicted of a crime involving dishonesty or breach of trust cannot serve as a director, officer, or employee of a System institution without written permission from the Farm Credit Administration; institutions that ignore this can be fined $100 per day. The Corporation may not use administrative or Insurance Fund money to help or support the Federal Agricultural Mortgage Corporation.