U.S. Code » Title 12 » Chapter CHAPTER 23— FARM CREDIT SYSTEM › Subchapter SUBCHAPTER V— FARM CREDIT ADMINISTRATION ORGANIZATION › Part Part C— Enforcement Powers of Farm Credit Administration

12 U.S.C. § 2262

Temporary cease and desist orders

Read at: OLRCuscode.house.gov CornellLII GovInfogovinfo.gov JustiaTitle 12 CasesGoogle Scholar
(a) Whenever the Farm Credit Administration shall determine that the violation or threatened violation or the unsafe or unsound practice or practices, specified in the notice of charges served upon the institution or any director, officer, employee, agent, or other person participating in the conduct of the affairs of such institution under section 2261 of this title, or the continuation thereof, is likely to cause insolvency or substantial dissipation of assets or earnings of the institution, or is likely to seriously weaken the condition of the institution or otherwise seriously prejudice the interests of the investors in Farm Credit System obligations or shareholders in the institution prior to the completion of the proceedings conducted under section 2261 of this title, the Farm Credit Administration may issue a temporary order requiring the institution or such director, officer, employee, agent, or other person to cease and desist from any such violation or practice and to take affirmative action to prevent such insolvency, dissipation, condition, or prejudice pending completion of such proceedings. Such order shall become effective upon service upon the institution or such director, officer, employee, agent, or other person participating in the conduct of the affairs of such institution and, unless set aside, limited, or suspended by a court in proceedings authorized by subsection (b), shall remain effective and enforceable pending the completion of the administrative proceedings pursuant to such notice and until such time as the Farm Credit Administration shall dismiss the charges specified in such notice, or if a cease and desist order is issued against the institution or such director, officer, employee, agent, or other person, until effective date of such order.(b) Within ten days after the institution concerned or any director, officer, employee, agent, or other person participating in the conduct of the affairs of such institution has been served with a temporary cease and desist order, the institution or such director, officer, employee, agent, or other person may apply to the United States district court for the judicial district in which the home office of the institution is located, or the United States district court for the District of Columbia, for an injunction setting aside, limiting, or suspending the enforcement, operation, or effectiveness of such order pending the completion of the administrative proceedings pursuant to the notice of charges served upon the institution or such director, officer, employee, agent, or other person under section 2261 of this title, and such court shall have jurisdiction to issue such injunction.(Pub. L. 92–181, title V, § 5.26, as added Pub. L. 99–205, title II, § 204, Dec. 23, 1985, 99 Stat. 1695.)Editorial NotesPrior Provisions

A prior section 5.26 of Pub. L. 92–181 was renumbered section 5.40 and is set out in part as notes under section 2001 of this title.

Statutory Notes and Related SubsidiariesEffective 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.

Notes of Decisions
Cited in 5 cases, 1988–1996 · leading case: Raymond P. Zajac & Helen Ann Zajac v. Fed. Land Bank of St. Paul, 909 F.2d 1181 (8th Cir. 1990).
Sort: Relevance Newest Treatment
Raymond P. Zajac & Helen Ann Zajac v. Fed. Land Bank of St. Paul, 909 F.2d 1181 (8th Cir. 1990). “12 U.S.C. § 2262 (a). Similarly, its authority to suspend or remove officers extends only to those situations involving substantial financial loss, impairment of shareholder interests, or personal dishonesty.”
Raymond P. Zajac & Helen Ann Zajac v. Fed. Land Bank of St. Paul, 887 F.2d 844 (8th Cir. 1989). “12 U.S.C. § 2262 (a). Similarly, its authority to suspend or remove officers extends only to those situations involving substantial financial loss, impairment of shareholder interests or personal dishonesty.”
Leckband v. Naylor, 715 F. Supp. 1451 (D. Minnesota 1988). “The cease and desist powers granted FCA by 12 U.S.C. § 2262 are inappropriate, both in scope and timing, to effectively protect § 2219a rights.”
Jarrett Ranches, Inc. v. Farm Credit Banks of Omaha (In re Jarrett Ranches, Inc.), 107 B.R. 963 (Bankr. D.S.D. 1989). “Also note that Jarretts are not eligible for a temporary cease and desist order under 12 U.S.C. § 2262 because such order is intended for use where a bank’s solvency is threatened rather than to protect the rights of Farm Credit System borrowers.”
Indep. Bankers Ass'n v. Nat'l Credit Union Admin., 936 F. Supp. 605 (W.D. Wis. 1996). “See also 12 U.S.C. § 2262 (circumstances in which the Farm Credit Administration “may issue a temporary order”); 12 U.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.