12 U.S.C. § 2265a — Removal and prohibition authority; industry-wide prohibition

submitted 8 years ago by Pub. L. 92-181 to r/title-12-BANKS-AND-BANKING · 459 words · no verdicts yet

in plain englishAI-generated · not legal advice

This section bars a person removed, suspended, or prohibited from a Farm Credit System institution from holding office or participating in many listed financial institutions while the order is effective. It provides a written-consent exception and treats violations as order violations.

(a) “Person” means (1) an individual or (2) a legal entity when the Farm Credit Administration specifically determines that it is one. (b) Unless subsection (c) applies, a person removed or suspended from office, or prohibited from participating in a System institution under § 2264 or § 2265, may not during the order’s effective period hold office in or participate in the affairs of (1) an insured depository institution covered by § 1818(e)(7)(A)(i), (2) an institution covered by § 1818(e)(7)(A)(ii), (3) an insured credit union under the Federal Credit Union Act, (4) a federal home loan bank, (5) an institution chartered under this chapter, (6) an appropriate federal financial institutions regulatory agency, (7) the Federal Housing Finance Agency, or (8) the Farm Credit Administration. (c) (1)(A) If an institution-affiliated party receives the written consents in subparagraph (B) on or after the order date, subsection (b) does not apply to the extent and with respect to the institution stated in those consents. (B) The consents must come from the Farm Credit Administration and each appropriate federal financial institutions regulatory agency for an applicable institution in paragraphs (1) through (4) of subsection (b) where the party proposes to become affiliated. (2) An agency giving consent must report it to the Farm Credit Administration and publicly disclose it. (3) The agencies must consult before giving consent. (d) A violation of subsection (b) by a person subject to the order is treated as a violation of that order.

the actual law source: uscode.house.gov ↗public domain

(a) Definition of person

In this section, the term “person” means—

(1)

an individual; and

(2)

in the case of a specific determination by the Farm Credit Administration, a legal entity.

(b) Industry-wide prohibition

Except as provided in subsection (c), any person who, pursuant to an order issued under section 2264 or 2265 of this title, has been removed or suspended from office at a System institution or prohibited from participating in the conduct of the affairs of a System institution shall not, during the period of effectiveness of the order, continue or commence to hold any office in, or participate in any manner in the conduct of the affairs of—

(1)

any insured depository institution subject to section 1818(e)(7)(A)(i) of this title;

(2)

any institution subject to section 1818(e)(7)(A)(ii) of this title;

(3)

any insured credit union under the Federal Credit Union Act (12 U.S.C. 1751 et seq.);

(4)

any Federal home loan bank;

(5)

any institution chartered under this chapter;

(6)

any appropriate Federal financial institutions regulatory agency (as defined in section 1818(e)(7)(D) of this title);

(7)

the Federal Housing Finance Agency; or

(8)

the Farm Credit Administration.

(1) In general

(A) Affiliated parties

If, on or after the date on which an order described in subsection (b) is issued that removes or suspends an institution-affiliated party from office at a System institution or prohibits an institution-affiliated party from participating in the conduct of the affairs of a System institution, that party receives written consent described in subparagraph (B), subsection (b) shall not apply to that party—

(i)

to the extent provided in the written consent received; and

(ii)

with respect to the institution described in each written consent.

(B) Written consent described

The written consent referred to in subparagraph (A) is written consent received from—

(i)

the Farm Credit Administration; and

(ii)

each appropriate Federal financial institutions regulatory agency (as defined in section 1818(e)(7)(D) of this title) of the applicable institution described in any of paragraphs (1), (2), (3), or (4) of subsection (b) with respect to which the party proposes to be become 1 an affiliated party.

(2) Disclosure

Any agency described in clause (i) or (ii) of paragraph (1)(B) that provides a written consent under that paragraph shall—

(A)

report the action to the Farm Credit Administration; and

(B)

publicly disclose the action.

(3) Consultation between agencies

The agencies described in clauses (i) and (ii) of paragraph (1)(B) shall consult with each other before providing any written consent under that paragraph.

(d) Violations

A violation of subsection (b) by any person who is subject to an order described in that subsection shall be treated as violation 2 of that order.

Source credit: (Pub. L. 92–181, title V, § 5.29A, as added Pub. L. 115–334, title V, § 5406, Dec. 20, 2018, 132 Stat. 4676.)

history & why it existsrecord from the source credit

2018Enacted · Pub. L. 92-181 · 132 Stat. 4676

A history note hasn’t been published yet. The record shows enactment by Pub. L. 92-181 on 2018-12-20.

all 0 arguments · sorted by: best

no arguments yet — make the first case