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Code · U.S. Code · Title 12 - BANKS AND BANKING · CHAPTER 23— FARM CREDIT SYSTEM · SUBCHAPTER V— FARM CREDIT ADMINISTRATION ORGANIZATION · § 2265

§ 2265. Suspension or removal of director or officer charged with felony

1,048 words·~5 min read·/usc/title-12/section-2265

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(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)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), 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, § 5.29, as added Pub. L. 99–205, title II, § 204, Dec. 23, 1985, 99 Stat. 1698; amended Pub. L. 100–233, title VIII, § 805(bb), Jan. 6, 1988, 101 Stat. 1717; Pub. L. 100–399, title VII, § 702(e), Aug. 17, 1988, 102 Stat. 1006.)
Connections12 cite this · traces to 3
14 references not yet in our index
  • Pub. L. 92–181, title V, § 5
  • Pub. L. 99–205, title II, § 204
  • 99 Stat. 1698
  • Pub. L. 100–233, title VIII, § 805(bb)
  • 101 Stat. 1717
  • Pub. L. 100–399, title VII, § 702(e)
  • 102 Stat. 1006
  • Pub. L. 92–181
  • Pub. L. 100–233, § 805(bb)(1)
  • Pub. L. 100–233
  • Pub. L. 100–233, § 805(bb)(2)
  • Pub. L. 100–399
  • section 1001(a) of Pub. L. 100–399
  • section 401 of Pub. L. 99–205
Citation graph
cites case law
§ 2265
Suspension or removal of director or officer charged with felony
Stat.×4
U.S.C.×3
Bills×2
Stat. Comp.×2
Pub. L.×1
Pub. L.Pub. L. 92–181, title V, § 5
Pub. L.Pub. L. 99–205, title II, § 204
Stat.99 Stat. 1698
Pub. L.Pub. L. 100–233, title VIII, § 805(bb)
Stat.101 Stat. 1717
Cites 17 · showing 8Cited by 12 across 5 sources
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