
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: 12USC2265]

 
                       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. 2265. Suspension or removal of director or officer charged 
        with felony
        
    (a) Whenever any director or officer of an institution in the Farm 
Credit System, or other person participating in the conduct of the 
affairs of such institution, is charged in any information, indictment, 
or complaint authorized by a United States attorney, with the commission 
of or participation in a crime involving dishonesty or breach of trust 
that is punishable by imprisonment for a term exceeding one year under 
State or Federal law, the Farm Credit Administration may, if continued 
service or participation by the individual may pose a threat to the 
interests of the institution's shareholders or investors in Farm Credit 
System obligations or threaten to impair public confidence in the 
institution or the Farm Credit System, by written notice served upon 
such director, officer, or other person, suspend such director, officer, 
or other person from office or prohibit such director, officer, or other 
person from further participation in any manner in the conduct of the 
affairs of the institution. A copy of such notice shall also be served 
upon the institution. Such suspension or prohibition shall remain in 
effect until such information, indictment, or complaint is finally 
disposed of or until terminated by the Farm Credit Administration. In 
the event that a judgment of conviction with respect to such crime is 
entered against such director, officer, or other person, and at such 
time as such judgment is not subject to further appellate review, the 
Farm Credit Administration may, if continued service or participation by 
the individual may pose a threat to the interests of the institution's 
shareholders or the investors in Farm Credit System obligations or may 
threaten to impair public confidence in the institution or the Farm 
Credit System, issue and serve upon such director, officer, or other 
person an order removing such director, officer, or other person from 
office or prohibiting such director, officer, or other person from 
further participation in any manner in the conduct of the affairs of the 
institution except with the consent of the Farm Credit Administration. A 
copy of such order shall also be served upon such institution, whereupon 
such director or officer shall cease to be a director or officer of such 
institution. A finding of not guilty or other disposition of the charge 
shall not preclude the Farm Credit Administration from thereafter 
instituting proceedings to remove such director, officer, or other 
person from office or to prohibit further participation in Farm Credit 
System affairs under section 2264 of this title. Any notice of 
suspension or order of removal issued under this paragraph shall remain 
effective and outstanding until the completion of any hearing or appeal 
authorized under subsection (b) of this section unless terminated by the 
Farm Credit Administration.
    (b) Within thirty days from service of any notice of suspension or 
order of removal issued under subsection (a) of this section, the 
director, officer, or other person concerned may request in writing an 
opportunity to appear before the Farm Credit Administration to show that 
the continued service to or participation in the conduct of the affairs 
of the institution by such individual does not, or is not likely to, 
pose a threat to the interest of the institution's shareholders or the 
investors in Farm Credit System obligations or threaten to impair public 
confidence in the institution or the Farm Credit System. Upon receipt of 
any such request, the Farm Credit Administration shall fix a time (not 
more than thirty days after receipt of such request, unless extended at 
the request of the concerned director, officer, or other person) and 
place at which the director, officer, or other person may appear, 
personally or through counsel, before the Chairman of the Farm Credit 
Administration or designated employees of the Farm Credit Administration 
to submit written materials (or, at the discretion of the Farm Credit 
Administration, oral testimony) and oral argument. Within sixty days of 
such hearing, the Farm Credit Administration shall notify the director, 
officer, or other person whether the suspension or prohibition from 
participation in any manner in the conduct of the affairs of the 
institution will be continued, terminated, or otherwise modified, or 
whether the order removing such director, officer, or other person from 
office or prohibiting such individual from further participation in any 
manner in the conduct of the affairs of the institution will be 
rescinded or otherwise modified. Such notification shall contain a 
statement of the basis for the Farm Credit Administration's decision, if 
adverse to the director, officer, or other person. The Farm Credit 
Administration may prescribe such rules as may be necessary to 
effectuate the purposes of this subsection.

(Pub. L. 92-181, title V, Sec. 5.29, as added Pub. L. 99-205, title II, 
Sec. 204, Dec. 23, 1985, 99 Stat. 1698; amended Pub. L. 100-233, title 
VIII, Sec. 805(bb), Jan. 6, 1988, 101 Stat. 1717; Pub. L. 100-399, title 
VII, Sec. 702(e), Aug. 17, 1988, 102 Stat. 1006.)


                            Prior Provisions

    A prior section 5.29 of Pub. L. 92-181 was renumbered section 5.43 
and is set out as a note under section 2001 of this title.


                               Amendments

    1988--Subsec. (a). Pub. L. 100-233, Sec. 805(bb)(1), substituted 
``may pose a threat to the interests of the institution's shareholders 
or investors in Farm Credit System obligations or may threaten to impair 
public confidence in the institution or the Farm Credit System'' for 
``may pose a threat to the interest of the institution's shareholders or 
the investors in the Farm Credit System obligations or may threaten to 
impair public confidence in the institution or Farm Credit System''.
    Subsec. (b). Pub. L. 100-233 struck out ``may'' before ``threaten to 
impair public confidence''.
    Pub. L. 100-233, Sec. 805(bb)(2), substituted ``of the institution's 
shareholders or the investors in Farm Credit System obligations or may 
threaten to impair public confidence in the institution or the Farm 
Credit System'' for ``in Farm Credit System obligations''.


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-399 effective as if enacted immediately 
after enactment of Pub. L. 100-233, which was approved Jan. 6, 1988, see 
section 1001(a) of Pub. L. 100-399, set out as a note under section 2002 
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 2266, 2269, 2270, 2271 of 
this title.
