--- kind: "section" citation: "12 U.S.C. § 2261" title: "12" title_heading: "Banks and Banking" number: "2261" heading: "Cease and desist proceedings" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/12/2261" units: - "Chapter 23 — Farm Credit System" - "Subchapter V — Farm Credit Administration Organization" - "Part C — Enforcement Powers of Farm Credit Administration" --- # §2261. Cease and desist proceedings - (a) If, in the opinion of the Farm [Credit](/usc/12/5481.md?p=7) Administration, any [institution](/usc/12/2271.md?p=3) in the Farm [Credit](/usc/12/5481.md?p=7) System, or any [director](/usc/12/2279bb.md?p=3), officer, employee, agent, or other [person](/usc/12/5481.md?p=19) participating in the conduct of the affairs of such an [institution](/usc/12/2271.md?p=3) is engaging or has engaged, or the Farm [Credit](/usc/12/5481.md?p=7) Administration has reasonable cause to believe that the [institution](/usc/12/2271.md?p=3) or any [director](/usc/12/2279bb.md?p=3), officer, employee, agent, or other [person](/usc/12/5481.md?p=19) participating in the conduct of the affairs of such [institution](/usc/12/2271.md?p=3) is about to engage, in an [unsafe or unsound practice](/usc/12/2271.md?p=5) in conducting the business of such [institution](/usc/12/2271.md?p=3), or is violating or has violated, or the Farm [Credit](/usc/12/5481.md?p=7) Administration has reasonable cause to believe that the [institution](/usc/12/2271.md?p=3) or any [director](/usc/12/2279bb.md?p=3), officer, employee, agent, or other [person](/usc/12/5481.md?p=19) participating in the conduct of the affairs of such [institution](/usc/12/2271.md?p=3) is about to violate, a law, rule, or regulation, or any condition imposed in writing by the Farm [Credit](/usc/12/5481.md?p=7) Administration in connection with the granting of any application or other request by the [institution](/usc/12/2271.md?p=3) or any written agreement entered into with the Farm [Credit](/usc/12/5481.md?p=7) Administration, the Farm [Credit](/usc/12/5481.md?p=7) Administration may issue and serve upon the [institution](/usc/12/2271.md?p=3) or such [director](/usc/12/2279bb.md?p=3), officer, employee, agent, or other [person](/usc/12/5481.md?p=19) a notice of charges in respect thereof. The notice shall contain a statement of the facts constituting the alleged [violation](/usc/12/2271.md?p=2) or [violations](/usc/12/2271.md?p=2) or the [unsafe or unsound practice](/usc/12/2271.md?p=5) or practices, and shall fix a time and place at which a hearing will be held to determine whether an order to cease and desist therefrom should issue against the [institution](/usc/12/2271.md?p=3) or the [director](/usc/12/2279bb.md?p=3), officer, employee, agent, or other [person](/usc/12/5481.md?p=19) participating in the conduct of the affairs of such [institution](/usc/12/2271.md?p=3). Such hearing shall be fixed for a date not earlier than thirty days nor later than sixty days after service of such notice unless an earlier or a later date is set by the Farm [Credit](/usc/12/5481.md?p=7) Administration at the request of any party so served. Unless the party or parties so served shall appear at the hearing personally or by a duly authorized representative, they shall be deemed to have consented to the issuance of the cease and desist order. In the event of such consent, or if upon the record made at any such hearing, the Farm [Credit](/usc/12/5481.md?p=7) Administration shall find that any [violation](/usc/12/2271.md?p=2) or [unsafe or unsound practice](/usc/12/2271.md?p=5) specified in the notice of charges has been established, the Farm [Credit](/usc/12/5481.md?p=7) Administration may issue and serve upon the [institution](/usc/12/2271.md?p=3) or the [director](/usc/12/2279bb.md?p=3), officer, employee, agent, or other [person](/usc/12/5481.md?p=19) participating in the conduct of the affairs of such [institution](/usc/12/2271.md?p=3) an order to cease and desist from any such [violation](/usc/12/2271.md?p=2) or practice. Such order may, by provisions that may be mandatory or otherwise, require the [institution](/usc/12/2271.md?p=3) or its [directors](/usc/12/2279bb.md?p=3), officers, employees, agents, and other [persons](/usc/12/5481.md?p=19) participating in the conduct of the affairs of such [institution](/usc/12/2271.md?p=3) to cease and desist from the same, and, further, to take affirmative action to correct the conditions resulting from any such [violation](/usc/12/2271.md?p=2) or practice. - (b) A cease and desist order shall become effective at the expiration of thirty days after the service of such order upon the [institution](/usc/12/2271.md?p=3) or other [person](/usc/12/5481.md?p=19) concerned (except in the case of a cease and desist order issued upon consent, which shall become effective at the time specified therein), and shall remain effective and enforceable as provided therein except to such extent as it is stayed, modified, terminated, or set aside by action of the Farm [Credit](/usc/12/5481.md?p=7) Administration or a reviewing court. ## Source credit (Pub. L. 92–181, title V, § 5.25, as added Pub. L. 99–205, title II, § 204, Dec. 23, 1985, 99 Stat. 1694.) ## Notes ### Editorial Notes ### Prior Provisions A prior section 5.25 of Pub. L. 92–181 was renumbered section 5.24 and is classified to section 2259 of this title. ### 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.