US Code

Public Law 119-88 (05/04/2026)

12 U.S.C. § 2271

Definitions

As used in this part—
(1)
section 2266(b) of this titlesection 2266(b) of this titlesection 2265 of this title the terms “cease and desist order that has become final” and “order which has become final” mean a cease and desist order, or an order, issued by the Farm Credit Administration with the consent of the System institution or the director or officer or other person concerned, or with respect to which no petition for review of the action of the Farm Credit Administration has been filed and perfected in a court of appeals as specified in , or with respect to which the action of the court in which such petition is so filed is not subject to further review by the Supreme Court of the United States in proceedings provided for in , or an order issued under ;
(2)
the term “violation” includes without limitation any action (alone or with another or others) for or toward causing, bringing about, participating in, counseling, or aiding or abetting a violation;
(3)
section 2002 of this title the terms “institution in the System”, “System institution”, and “institution” mean all institutions enumerated in , any service organization chartered under part E of subchapter IV of this chapter, and the Financial Assistance Corporation;
(4)
the term “institution-affiliated party” means—
(A)
a director, officer, employee, shareholder, or agent of a System institution;
(B)
an independent contractor (including an attorney, appraiser, or accountant) who knowingly or recklessly participates in—
(i)
a violation of law (including regulations) that is associated with the operations and activities of 1 or more System institutions;
(ii)
a breach of fiduciary duty; or
(iii)
an unsafe practice that causes or is likely to cause more than a minimum financial loss to, or a significant adverse effect on, a System institution; and
(C)
any other person, as determined by the Farm Credit Administration (by regulation or on a case-by-case basis) who participates in the conduct of the affairs of a System institution; and
(5)
the term “unsafe or unsound practice” shall—
(A)
have the meaning given to it by the Farm Credit Administration by regulation, rule, or order; and
(B)
section 2277a–10 of this title mean any significant noncompliance by a System institution (as determined by the Farm Credit Administration, in consultation with the Farm Credit System Insurance Corporation) with any term or condition imposed on the institution by the Farm Credit System Insurance Corporation under .

Pub. L. 92–181, title V, § 5Pub. L. 99–205, title II, § 20499 Stat. 1701 Pub. L. 100–233, title II101 Stat. 1605 Pub. L. 102–237, title V, § 502(i)105 Stat. 1869 Pub. L. 102–552, title II, § 202(b)106 Stat. 4106 Pub. L. 115–334, title V132 Stat. 4678 (.35, as added , , ; amended , §§ 203, 207(d), , , 1608; , , ; , , ; , §§ 5408, 5411(34), , , 4683.)

Editorial Notes

Amendments

Pub. L. 115–334, § 54082018—Pars. (4), (5). , added par. (4) and redesignated former par. (4) as (5).

Pub. L. 115–334, § 5411(34)section 2278a–6 of this titlesection 2278a–6 of this titlePar. (5)(B), (C). , redesignated subpar. (C) as (B), struck out “after ,” before “mean any” and “by the Farm Credit System Assistance Board under or” before “by the Farm Credit System Insurance Corporation”, and struck out former subpar. (B) which read as follows: “during the period beginning on , and ending , mean any noncompliance by a System institution, as determined by the Farm Credit Administration in consultation with the Assistance Board, with any term or condition imposed on the institution by the Assistance Board under ; and”.

Pub. L. 102–5521992—Par. (4)(C). added subpar. (C).

Pub. L. 102–2371991—Par. (3). substituted “part E” for “part D”.

Pub. L. 100–233, § 207(d)1988—Par. (3). , substituted “Financial Assistance Corporation” for “Capital Corporation”.

Pub. L. 100–233, § 203Par. (4). , amended par. (4) generally. Prior to amendment, par. (4) read as follows: “the term ‘unsafe or unsound practice’ shall have the meaning given to it by the Farm Credit Administration by regulations, rule, or order.”

Statutory Notes and Related Subsidiaries

Effective Date of 1991 Amendment

Pub. L. 102–237Pub. L. 101–624section 1101(b)(4) of Pub. L. 102–237section 1421 of Title 7Amendment by effective as if included in the provision of the Food, Agriculture, Conservation, and Trade Act of 1990, , to which the amendment relates, see , set out as a note under , Agriculture.

Effective Date

section 401 of Pub. L. 99–205section 2001 of this titleSection effective thirty days after , see , set out as an Effective Date of 1985 Amendment note under .