---
kind: "section"
citation: "12 C.F.R. § 1412.1"
title: "12"
number: "1412.1"
heading: "Scope."
url: "https://uscodex.org/cfr/12/1412.1"
---

# §1412.1. Scope.

- (a) This part limits and/or prohibits, in certain circumstances, the ability of Farm Credit System (System) institutions, their service corporations, subsidiaries and affiliates from making golden parachute and indemnification payments to institution-related parties (IRPs).
- (b) This part applies to System institutions in a troubled condition that seek to make golden parachute payments to their IRPs.
- (c) The limitations on indemnification payments apply to all System institutions, their service corporations, subsidiaries and affiliates regardless of their financial health.

## Notes

### Authority

Authority: 12 U.S.C. 2277a-10b.

### Source

Source: 71 FR 7405, Feb. 13, 2006, unless otherwise noted.