§ 2271. Definitions

Statutory text

As used in this part—

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 section 2266(b) of this title, 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 section 2266(b) of this title, or an order issued under section 2265 of this title;

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;

the terms “institution in the System”, “System institution”, and “institution” mean all institutions enumerated in section 2002 of this title, any service organization chartered under part E of subchapter IV of this chapter, and the Financial Assistance Corporation;

the term “institution-affiliated party” means—

a director, officer, employee, shareholder, or agent of a System institution;

an independent contractor (including an attorney, appraiser, or accountant) who knowingly or recklessly participates in—

a violation of law (including regulations) that is associated with the operations and activities of 1 or more System institutions;

a breach of fiduciary duty; or

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

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

the term “unsafe or unsound practice” shall—

have the meaning given to it by the Farm Credit Administration by regulation, rule, or order; and

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 section 2277a–10 of this title.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1985
Farm Credit Act of 1971
Pub. L. 92–181 title V § 5 · 85 Stat. 583
Enacted · 12 U.S.C. § 2271
Pub. L. 92–181, title V, § 5.35, as added Pub. L. 99–205, title II, § 204, Dec. 23, 1985, 99 Stat. 1701
Source evidence
Code source credit
Pub. L. 92–181, title V, § 5.35, as added Pub. L. 99–205, title II, § 204, Dec. 23, 1985, 99 Stat. 1701
Enacted provision · exact public law section
(5) Acquire, hold, dispose, and otherwise exercise all the usual incidents of ownership of real and personal property necessary or convenient to its business.
1988
Agricultural Credit Act of 1987
Pub. L. 100–233 § 207(d) · 101 Stat. 1568
Substituted · 12 U.S.C. § 2271(3)
Pub. L. 100–233, § 207(d), substituted “Financial Assistance Corporation” for “Capital Corporation”
Source evidence
Code amendment note
Par. (3). Pub. L. 100–233, § 207(d), substituted “Financial Assistance Corporation” for “Capital Corporation”.
Enacted provision · exact public law section
(d) Redesignation.— Section 5.35(3) (12 U.S.C. 2271(3)) is amended by striking out “Capital Corporation” and inserting in lieu thereof “Financial Assistance Corporation.”.
1988
Agricultural Credit Act of 1987
Pub. L. 100–233 § 203 · 101 Stat. 1568
Amended · 12 U.S.C. § 2271(4)
Pub. L. 100–233, § 203, 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.”
Source evidence
Code amendment note
Par. (4). Pub. L. 100–233, § 203, 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.”
Enacted provision · exact public law section
SEC. 203. UNSAFE OR UNSOUND PRACTICES. Paragraph (4) of section 5.35 (12 U.S.C. 2271(4)) is amended to read as follows: “(4) 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) during the period beginning on the date of the enactment of this paragraph and ending December 31, 1992, 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 section 6.6.”.
1991
Pub. L. 102–237 title V § 502(i) · 105 Stat. 1818
Substituted · 12 U.S.C. § 2271(3)
Pub. L. 102–237 substituted “part E” for “part D”
Source evidence
Code amendment note
Par. (3). Pub. L. 102–237 substituted “part E” for “part D”.
Enacted provision · exact public law section
(i) Amendment to Section 5.35(3).— Section 5.35(3) of such Act (12 U.S.C. 2271(3)) is amended by striking “D” and inserting “E”.
Effective date note
Amendment by Pub. L. 102–237 effective as if included in the provision of the Food, Agriculture, Conservation, and Trade Act of 1990, Pub. L. 101–624, to which the amendment relates, see section 1101(b)(4) of Pub. L. 102–237, set out as a note under section 1421 of Title 7, Agriculture.
1992
Farm Credit Banks and Associations Safety and Soundness Act of 1992
Pub. L. 102–552 title II § 202(b) · 106 Stat. 4102
Added · 12 U.S.C. § 2271(4)(C)
Pub. L. 102–552 added subpar. (C)
Source evidence
Code amendment note
Par. (4)(C). Pub. L. 102–552 added subpar. (C).
Enacted provision · exact public law section
(b) Conforming Amendments.— Section 5.35(4) (12 U.S.C. 2271(4)) is amended— (1) by striking “and” at the end of subparagraph (A); (2) by striking the period at the end of subparagraph (B) and inserting “; and”; and (3) by adding at the end the following new subparagraph: “(C) after December 31, 1992, 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 Assistance Board under section 6.6 or by the Farm Credit System Insurance Corporation under section 5.61.”.
2018
Agriculture Improvement Act of 2018
Pub. L. 115–334 § 5408 · 132 Stat. 4490
1. Added · 12 U.S.C. § 2271(4); 12 U.S.C. § 2271(5)
  Pub. L. 115–334, § 5408, added par. (4)
2. Redesignated · 12 U.S.C. § 2271(4); 12 U.S.C. § 2271(5)
  Pub. L. 115–334, § 5408, redesignated former par. (4) as (5)
Source evidence
Code amendment note
Pars. (4), (5). Pub. L. 115–334, § 5408, added par. (4) and redesignated former par. (4) as (5).
Enacted provision · exact public law section
SEC. 5408. DEFINITION OF INSTITUTION-AFFILIATED PARTY. Section 5.35 of the Farm Credit Act of 1971 (12 U.S.C. 2271) is amended— (1) in paragraph (3), by striking “and” at the end; (2) by redesignating paragraph (4) as paragraph (5); and (3) by inserting after paragraph (3) the following: “(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” .
2018
Agriculture Improvement Act of 2018
Pub. L. 115–334 § 5411(34) · 132 Stat. 4490
1. Redesignated · 12 U.S.C. § 2271(5)(B); 12 U.S.C. § 2271(5)(C)
  Pub. L. 115–334, § 5411(34), redesignated subpar. (C) as (B)
2. Struck · 12 U.S.C. § 2271(5)(B); 12 U.S.C. § 2271(5)(C)
  Pub. L. 115–334, § 5411(34), struck out “after December 31, 1992,” before “mean any” and “by the Farm Credit System Assistance Board under section 2278a–6 of this title or” before “by the Farm Credit System Insurance Corporation”
3. Struck · 12 U.S.C. § 2271(5)(B); 12 U.S.C. § 2271(5)(C)
  Pub. L. 115–334, § 5411(34), struck out former subpar. (B) which read as follows: “during the period beginning on January 6, 1988, and ending December 31, 1992, 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 section 2278a–6 of this title; and”
Source evidence
Code amendment note
Par. (5)(B), (C). Pub. L. 115–334, § 5411(34), redesignated subpar. (C) as (B), struck out “after December 31, 1992,” before “mean any” and “by the Farm Credit System Assistance Board under section 2278a–6 of this title or” before “by the Farm Credit System Insurance Corporation”, and struck out former subpar. (B) which read as follows: “during the period beginning on January 6, 1988, and ending December 31, 1992, 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 section 2278a–6 of this title; and”.
Enacted provision · exact public law section
(34) Section 5.35 of the Farm Credit Act of 1971 (12 U.S.C. 2271) is amended in paragraph (5) (as redesignated by section 5408(2))— (A) in subparagraph (A), by adding “and” at the end; (B) by striking subparagraph (B); (C) by redesignating subparagraph (C) as subparagraph (B); and (D) in subparagraph (B) (as so redesignated)— (i) by striking “after December 31, 1992,”; and (ii) by striking “by the Farm Credit System Assistance Board under section 6.6 or”.

10 of 10 references resolved to an enrolled provision

Editorial Notes

Amendments1988–2018 · 4 rounds

2018

Pars. (4), (5). Pub. L. 115–334, § 5408, added par. (4) and redesignated former par. (4) as (5).

Par. (5)(B), (C). Pub. L. 115–334, § 5411(34), redesignated subpar. (C) as (B), struck out “after December 31, 1992,” before “mean any” and “by the Farm Credit System Assistance Board under section 2278a–6 of this title or” before “by the Farm Credit System Insurance Corporation”, and struck out former subpar. (B) which read as follows: “during the period beginning on January 6, 1988, and ending December 31, 1992, 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 section 2278a–6 of this title; and”.

1992

Par. (4)(C). Pub. L. 102–552 added subpar. (C).

1991

Par. (3). Pub. L. 102–237 substituted “part E” for “part D”.

1988

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

Par. (4). Pub. L. 100–233, § 203, 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

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

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.

Credits

1985–2018 · 5 acts

1985Pub. L. 92–181, title V, § 5.35, as added Pub. L. 99–205, title II, § 204, Dec. 23, 1985, 99 Stat. 1701
1988amended Pub. L. 100–233, title II, §§ 203, 207(d), Jan. 6, 1988, 101 Stat. 1605, 1608
1991Pub. L. 102–237, title V, § 502(i), Dec. 13, 1991, 105 Stat. 1869
1992Pub. L. 102–552, title II, § 202(b), Oct. 28, 1992, 106 Stat. 4106
2018Pub. L. 115–334, title V, §§ 5408, 5411(34), Dec. 20, 2018, 132 Stat. 4678, 4683.

Show as published

(Pub. L. 92–181, title V, § 5.35, as added Pub. L. 99–205, title II, § 204, Dec. 23, 1985, 99 Stat. 1701; amended Pub. L. 100–233, title II, §§ 203, 207(d), Jan. 6, 1988, 101 Stat. 1605, 1608; Pub. L. 102–237, title V, § 502(i), Dec. 13, 1991, 105 Stat. 1869; Pub. L. 102–552, title II, § 202(b), Oct. 28, 1992, 106 Stat. 4106; Pub. L. 115–334, title V, §§ 5408, 5411(34), Dec. 20, 2018, 132 Stat. 4678, 4683.)