12 U.S.C. § 2265 — Suspension or removal of director or offi-

Page 1366 TITLE 12—BANKS AND BANKING § 2265 § 2265. Suspension or removal of director or offi- cer charged with felony (a) Whenever any director or officer of an in- stitution in the Farm Credit System, or other person participating in the conduct of the af- fairs of such institution, is charged in any infor- mation, indictment, or complaint authorized by a United States attorney, with the commission of or participation in a crime involving dishon- esty or breach of trust that is punishable by im- prisonment for a term exceeding one year under State or Federal law, the Farm Credit Adminis- tration may, if continued service or participa- tion by the individual may pose a threat to the interests of the institution’s shareholders or in- vestors in Farm Credit System obligations or threaten to impair public confidence in the in- stitution 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 direc- tor, officer, or other person from further partici- pation in any manner in the conduct of the af- fairs 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 com- plaint 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, offi- cer, or other person, and at such time as such judgment is not subject to further appellate re- view, the Farm Credit Administration may, if continued service or participation by the indi- vidual may pose a threat to the interests of the institution’s shareholders or the investors in Farm Credit System obligations or may threat- en 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 Ad- ministration from thereafter instituting pro- ceedings 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 out- standing 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 no- tice 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 serv- ice to or participation in the conduct of the af- fairs of the institution by such individual does not, or is not likely to, pose a threat to the in- terest of the institution’s shareholders or the in- vestors in Farm Credit System obligations or threaten to impair public confidence in the in- stitution or the Farm Credit System. Upon re- ceipt of any such request, the Farm Credit Ad- ministration shall fix a time (not more than thirty days after receipt of such request, unless extended at the request of the concerned direc- tor, officer, or other person) and place at which the director, officer, or other person may ap- pear, personally or through counsel, before the Chairman of the Farm Credit Administration or designated employees of the Farm Credit Ad- ministration to submit written materials (or, at the discretion of the Farm Credit Administra- tion, oral testimony) and oral argument. Within sixty days of such hearing, the Farm Credit Ad- ministration shall notify the director, officer, or other person whether the suspension or prohibi- tion 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, offi- cer, 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 modi- fied. Such notification shall contain a statement of the basis for the Farm Credit Administra- tion’s decision, if adverse to the director, offi- cer, or other person. The Farm Credit Adminis- tration may prescribe such rules as may be nec- essary to effectuate the purposes of this sub- section. (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.) Editorial Notes PRIOR PROVISIONS A prior section 5.29 of Pub. L. 92–181 was renumbered section 5.43 and is set out as a note under section 2001 of this title. AMENDMENTS 1988—Subsec. (a). Pub. L. 100–233, § 805(bb)(1), sub- stituted ‘‘may pose a threat to the interests of the in- stitution’s shareholders or investors in Farm Credit System obligations or may threaten to impair public confidence in the institution or the Farm Credit Sys- tem’’ for ‘‘may pose a threat to the interest of the in- stitution’s shareholders or the investors in the Farm Credit System obligations or may threaten to impair public confidence in the institution or Farm Credit System’’. Subsec. (b). Pub. L. 100–233 struck out ‘‘may’’ before ‘‘threaten to impair public confidence’’. Pub. L. 100–233, § 805(bb)(2), substituted ‘‘of the insti- tution’s shareholders or the investors in Farm Credit System obligations or may threaten to impair public confidence in the institution or the Farm Credit Sys- tem’’ for ‘‘in Farm Credit System obligations’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–399 effective as if enacted immediately after enactment of Pub. L. 100–233, which was approved Jan. 6, 1988, see section 1001(a) of Pub. L. 100–399, set out as a note under section 2002 of this title. Page 1367 TITLE 12—BANKS AND BANKING § 2266 1 So in original. 2 So in original. Probably should be preceded by ‘‘a’’. 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. § 2265a. Removal and prohibition authority; in- dustry-wide prohibition (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 enti- ty. (b) Industry-wide prohibition Except as provided in subsection (c), any per- son who, pursuant to an order issued under sec- tion 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 sub- ject 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 Fed- eral 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 institu- tions 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. (c) Exception for institution-affiliated party that receives written consent (1) In general (A) Affiliated parties If, on or after the date on which an order described in subsection (b) is issued that re- moves 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 af- fairs of a System institution, that party re- ceives written consent described in subpara- graph (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 de- scribed in each written consent. (B) Written consent described The written consent referred to in sub- paragraph (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 pro- poses 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 con- sent 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 sub- section shall be treated as violation 2 of that order. (Pub. L. 92–181, title V, § 5.29A, as added Pub. L. 115–334, title V, § 5406, Dec. 20, 2018, 132 Stat. 4676.) Editorial Notes REFERENCES IN TEXT The Federal Credit Union Act, referred to in subsec. (b)(3), is act June 26, 1934, ch. 750, 48 Stat. 1216, which is classified generally to chapter 14 (§ 1751 et seq.) of this title. For complete classification of this Act to the Code, see section 1751 of this title and Tables. § 2266. Hearings and judicial review (a) Venue; closed hearings; decisions and find- ings of fact; orders; modification or other ac- tion by Farm Credit Administration; judicial review Any hearing provided for in this part (other than the hearing provided for in section 2265 of this title) shall be held in the Federal judicial district or in the territory in which the home of- fice of the institution is located unless the party afforded the hearing consents to another place, and shall be conducted in accordance with the provisions of chapter 5 of title 5. Such hearing shall be private, unless the Farm Credit Admin- istration, in its discretion, after fully consid- ering the views of the party afforded the hear- ing, determines that a public hearing is nec- essary to protect the public interest. After such hearing, and within ninety days after the Farm Credit Administration has notified the parties that the case has been submitted to it for final decision, it shall render its decision (which shall include findings of fact upon which its decision is predicated) and shall issue and serve upon each party to the proceeding an order or orders consistent with the provisions of this part. Judi- cial review of any such order shall be exclu- sively as provided in this section. Unless a peti- tion for review is timely filed in a court of ap- peals of the United States, as hereinafter pro- vided in subsection (b), and thereafter until the record in the proceeding has been filed as so pro- vided, the Farm Credit Administration may at any time, upon such notice and in such manner as it shall deem proper, modify, terminate, or set aside any such order. Upon such filing of the record, the Farm Credit Administration may