
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: 12USC2277a-14]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
          SUBCHAPTER V--FARM CREDIT ADMINISTRATION ORGANIZATION
 
            Part E--Farm Credit System Insurance Corporation
 
Sec. 2277a-14. Prohibitions


(a) Corporate name

                      (1) Use of corporate name

        It shall be unlawful for any person or entity to use the words 
    ``Farm Credit System Insurance Corporation'' or any combination of 
    such words that would have the effect of leading the public to 
    believe that there is any connection between such person or entity 
    and the Corporation, by virtue of the name under which such person 
    or entity does business.

                      (2) False representation

        (A) By outside person or entities

            It shall be unlawful for any person or entity to falsely 
        represent by any device, that the notes, bonds, debentures, or 
        other obligations of the person or entity are insured or in any 
        way guaranteed by the Corporation.

        (B) System banks

            It shall be unlawful for any insured System bank or person 
        that markets insured obligations to falsely represent the extent 
        to which or the manner in which such obligations are insured by 
        the Corporation.

                             (3) Penalty

        Any person or entity that willfully violates any provision of 
    this subsection shall be fined not more than $1,000, imprisoned for 
    not more than 1 year, or both.

(b) Payments or distributions while in default

                           (1) In general

        It shall be unlawful for any insured System bank to pay any 
    dividends on bank stock or participation certificates or interest on 
    the capital notes or debentures of such bank (if such interest is 
    required to be paid only out of net profits) or distribute any of 
    the capital assets of such bank while the bank remains in default in 
    the payment of any premium due to the Corporation.

                     (2) Liability of directors

        Each director or officer of any insured System bank who 
    willfully participates in the declaration or payment of any dividend 
    or interest or in any distribution in violation of this subsection 
    shall be fined not more than $1,000, imprisoned not more than 1 
    year, or both.

                          (3) Applicability

        This subsection shall not apply to any default that is due to a 
    dispute between the insured System bank and the Corporation over the 
    amount of such premium if such bank deposits security satisfactory 
    to the Corporation for payment on final determination of the issue.

(c) Failure to file statement or pay premium

                           (1) In general

        Any insured System bank that willfully fails or refuses to file 
    any certified statement or pay any premium required under this part 
    shall be subject to a penalty of not more than $100 for each day 
    that such violations continue, which penalty the Corporation may 
    recover for its use.

                          (2) Applicability

        This subsection shall not apply to conduct with respect to any 
    default that is due to a dispute between the insured System bank and 
    the Corporation over the amount of such premium if such bank 
    deposits security satisfactory to the Corporation for payment on 
    final determination of the issue.

(d) Employment of persons convicted of criminal offenses

                           (1) In general

        Except with the prior written consent of the Farm Credit 
    Administration, it shall be unlawful for any person convicted of any 
    criminal offense involving dishonesty or a breach of trust to serve 
    as a director, officer, or employee of any System institution.

                             (2) Penalty

        For each willful violation of paragraph (1), the institution 
    involved shall be subject to a penalty of not more than $100 for 
    each day during which the violation continues, which the Corporation 
    may recover for its use.

(Pub. L. 92-181, title V, Sec. 5.65, as added Pub. L. 100-233, title 
III, Sec. 302, Jan. 6, 1988, 101 Stat. 1619; amended Pub. L. 101-624, 
title XVIII, Sec. 1837, Nov. 28, 1990, 104 Stat. 3834; Pub. L. 102-237, 
title V, Sec. 502(k), Dec. 13, 1991, 105 Stat. 1869.)


                               Amendments

    1991--Subsec. (d)(1). Pub. L. 102-237 struck out ``insured'' before 
``System''.
    1990--Subsec. (d)(1). Pub. L. 101-624, Sec. 1837(1), substituted 
``insured System institution'' for ``insured System bank''.
    Subsec. (d)(2). Pub. L. 101-624, Sec. 1837(2), substituted 
``institution'' for ``bank''.
