
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 12USC2261]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
          SUBCHAPTER V--FARM CREDIT ADMINISTRATION ORGANIZATION
 
        Part C--Enforcement Powers of Farm Credit Administration
 
Sec. 2261. Cease and desist proceedings

    (a) If, in the opinion of the Farm Credit Administration, any 
institution in the Farm Credit System, or any director, officer, 
employee, agent, or other person participating in the conduct of the 
affairs of such an institution is engaging or has engaged, or the Farm 
Credit Administration has reasonable cause to believe that the 
institution or any director, officer, employee, agent, or other person 
participating in the conduct of the affairs of such institution is about 
to engage, in an unsafe or unsound practice in conducting the business 
of such institution, or is violating or has violated, or the Farm Credit 
Administration has reasonable cause to believe that the institution or 
any director, officer, employee, agent, or other person participating in 
the conduct of the affairs of such institution is about to violate, a 
law, rule, or regulation, or any condition imposed in writing by the 
Farm Credit Administration in connection with the granting of any 
application or other request by the institution or any written agreement 
entered into with the Farm Credit Administration, the Farm Credit 
Administration may issue and serve upon the institution or such 
director, officer, employee, agent, or other person a notice of charges 
in respect thereof. The notice shall contain a statement of the facts 
constituting the alleged violation or violations or the unsafe or 
unsound practice or practices, and shall fix a time and place at which a 
hearing will be held to determine whether an order to cease and desist 
therefrom should issue against the institution or the director, officer, 
employee, agent, or other person participating in the conduct of the 
affairs of such institution. Such hearing shall be fixed for a date not 
earlier than thirty days nor later than sixty days after service of such 
notice unless an earlier or a later date is set by the Farm Credit 
Administration at the request of any party so served. Unless the party 
or parties so served shall appear at the hearing personally or by a duly 
authorized representative, they shall be deemed to have consented to the 
issuance of the cease and desist order. In the event of such consent, or 
if upon the record made at any such hearing, the Farm Credit 
Administration shall find that any violation or unsafe or unsound 
practice specified in the notice of charges has been established, the 
Farm Credit Administration may issue and serve upon the institution or 
the director, officer, employee, agent, or other person participating in 
the conduct of the affairs of such institution an order to cease and 
desist from any such violation or practice. Such order may, by 
provisions that may be mandatory or otherwise, require the institution 
or its directors, officers, employees, agents, and other persons 
participating in the conduct of the affairs of such institution to cease 
and desist from the same, and, further, to take affirmative action to 
correct the conditions resulting from any such violation or practice.
    (b) A cease and desist order shall become effective at the 
expiration of thirty days after the service of such order upon the 
institution or other person concerned (except in the case of a cease and 
desist order issued upon consent, which shall become effective at the 
time specified therein), and shall remain effective and enforceable as 
provided therein except to such extent as it is stayed, modified, 
terminated, or set aside by action of the Farm Credit Administration or 
a reviewing court.

(Pub. L. 92-181, title V, Sec. 5.25, as added Pub. L. 99-205, title II, 
Sec. 204, Dec. 23, 1985, 99 Stat. 1694.)


                            Prior Provisions

    A prior section 5.25 of Pub. L. 92-181 was renumbered section 5.24 
and is classified to section 2259 of this title.


                             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.

                  Section Referred to in Other Sections

    This section is referred to in sections 2262, 2267, 2268 of this 
title.
