12 U.S.C. § 2270 — Replacement of suspended or removed di-

Page 1370 TITLE 12—BANKS AND BANKING § 2269 and determining the amount of such penalty, the Farm Credit Administration shall notify the institution or person to be assessed of the violation or violations al- leged to have occurred or to be occurring, and shall so- licit the views of the institution or person regarding the imposition of such penalty.’’ Subsec. (d). Pub. L. 100–233, § 423(c), substituted ‘‘Final orders of the Farm Credit Administration issued under subsection (c) shall be reviewable under chapter 7 of title 5’’ for ‘‘The findings of the Farm Credit Ad- ministration shall be set aside if found to be unsup- ported by substantial evidence as provided by section 706(2)(E) of title 5’’. Subsec. (f). Pub. L. 100–233, § 805(dd), substituted ‘‘sec- tion 2267 of this title and this section’’ for ‘‘sections 2267 and 2268 of this title’’. Subsec. (h). Pub. L. 100–233, § 804(a)(2), added subsec. (h). Statutory Notes and Related Subsidiaries 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. § 2269. Further penalties Any director or officer, or former director or officer of a System institution, or any other per- son, against whom there is outstanding and ef- fective any notice or order (which is an order which has become final) served upon such direc- tor, officer, or other person under section 2264 or 2265 of this title, and who (1) participates in any manner in the conduct of the affairs of the insti- tution involved, or directly or indirectly solicits or procures, or transfers or attempts to transfer, or votes or attempts to vote, any proxies, con- sents, or authorizations in respect of any voting rights in such institution, or (2) without the prior written approval of the Farm Credit Ad- ministration, votes for a director, serves or acts as a director, officer, or employee of any System institution, shall upon conviction be fined not more than $5,000 or imprisoned for not more than one year, or both. (Pub. L. 92–181, title V, § 5.33, as added Pub. L. 99–205, title II, § 204, Dec. 23, 1985, 99 Stat. 1701.) Statutory Notes and Related Subsidiaries 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. § 2270. Replacement of suspended or removed di- rectors If at any time, because of the suspension or re- moval of one or more directors pursuant to sec- tion 2264 or 2265 of this title, there shall be on the board of directors of a System institution less than a quorum of directors not so sus- pended, the Chairman shall appoint persons to serve temporarily as directors in their place and stead so as to establish a quorum until such time as those who have been removed are rein- stated or their respective successors are duly elected and take office. (Pub. L. 92–181, title V, § 5.34, as added Pub. L. 99–205, title II, § 204, Dec. 23, 1985, 99 Stat. 1701.) Statutory Notes and Related Subsidiaries 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. § 2271. Definitions As used in this part— (1) the terms ‘‘cease and desist order that has become final’’ and ‘‘order which has be- come final’’ mean a cease and desist order, or an order, issued by the Farm Credit Adminis- tration with the consent of the System insti- tution or the director or officer or other per- son concerned, or with respect to which no pe- tition for review of the action of the Farm Credit Administration has been filed and per- fected in a court of appeals as specified in sec- tion 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 re- view 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; (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) 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; (4) the term ‘‘institution-affiliated party’’ means— (A) a director, officer, employee, share- holder, 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 regula- tions) that is associated with the oper- ations 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 fi- nancial loss to, or a significant adverse ef- fect 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 in- stitution; 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) mean any significant noncompliance by a System institution (as determined by the Farm Credit Administration, in con- sultation with the Farm Credit System In- surance Corporation) with any term or con- dition imposed on the institution by the