---
kind: "section"
citation: "12 U.S.C. § 2265"
title: "12"
title_heading: "Banks and Banking"
number: "2265"
heading: "Suspension or removal of director or officer charged with felony"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/2265"
units:
  - "Chapter 23 — Farm Credit System"
  - "Subchapter V — Farm Credit Administration Organization"
  - "Part C — Enforcement Powers of Farm Credit Administration"
---

# §2265. Suspension or removal of director or officer charged with felony

- (a) Whenever any [director](/usc/12/2279bb.md?p=3) or officer of an [institution](/usc/12/2271.md?p=3) in the Farm [Credit](/usc/12/5481.md?p=7) System, 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 charged in any information, indictment, or complaint authorized by a United States attorney, with the commission of or participation in a crime involving dishonesty or breach of trust that is punishable by imprisonment for a term exceeding one year under [State](/usc/12/2277a.md?p=5) or Federal law, the Farm [Credit](/usc/12/5481.md?p=7) Administration may, if continued service or participation by the individual may pose a threat to the interests of the [institution](/usc/12/2271.md?p=3)’s shareholders or investors in Farm [Credit](/usc/12/5481.md?p=7) System obligations or threaten to impair public confidence in the [institution](/usc/12/2271.md?p=3) or the Farm [Credit](/usc/12/5481.md?p=7) System, by written notice served upon such [director](/usc/12/2279bb.md?p=3), officer, or other [person](/usc/12/5481.md?p=19), suspend such [director](/usc/12/2279bb.md?p=3), officer, or other [person](/usc/12/5481.md?p=19) from [office](/usc/12/2279bb.md?p=4) or prohibit such [director](/usc/12/2279bb.md?p=3), officer, or other [person](/usc/12/5481.md?p=19) from further participation in any manner in the conduct of the affairs of the [institution](/usc/12/2271.md?p=3). A copy of such notice shall also be served upon the [institution](/usc/12/2271.md?p=3). Such suspension or prohibition shall remain in effect until such information, indictment, or complaint is finally disposed of or until terminated by the Farm [Credit](/usc/12/5481.md?p=7) Administration. In the event that a judgment of conviction with respect to such crime is entered against such [director](/usc/12/2279bb.md?p=3), officer, or other [person](/usc/12/5481.md?p=19), and at such time as such judgment is not subject to further appellate review, the Farm [Credit](/usc/12/5481.md?p=7) Administration may, if continued service or participation by the individual may pose a threat to the interests of the [institution](/usc/12/2271.md?p=3)’s shareholders or the investors in Farm [Credit](/usc/12/5481.md?p=7) System obligations or may threaten to impair public confidence in the [institution](/usc/12/2271.md?p=3) or the Farm [Credit](/usc/12/5481.md?p=7) System, issue and serve upon such [director](/usc/12/2279bb.md?p=3), officer, or other [person](/usc/12/5481.md?p=19) an order removing such [director](/usc/12/2279bb.md?p=3), officer, or other [person](/usc/12/5481.md?p=19) from [office](/usc/12/2279bb.md?p=4) or prohibiting such [director](/usc/12/2279bb.md?p=3), officer, or other [person](/usc/12/5481.md?p=19) from further participation in any manner in the conduct of the affairs of the [institution](/usc/12/2271.md?p=3) except with the consent of the Farm [Credit](/usc/12/5481.md?p=7) Administration. A copy of such order shall also be served upon such [institution](/usc/12/2271.md?p=3), whereupon such [director](/usc/12/2279bb.md?p=3) or officer shall cease to be a [director](/usc/12/2279bb.md?p=3) or officer of such [institution](/usc/12/2271.md?p=3). A finding of not guilty or other disposition of the charge shall not preclude the Farm [Credit](/usc/12/5481.md?p=7) Administration from thereafter instituting proceedings to remove such [director](/usc/12/2279bb.md?p=3), officer, or other [person](/usc/12/5481.md?p=19) from [office](/usc/12/2279bb.md?p=4) or to prohibit further participation in Farm [Credit](/usc/12/5481.md?p=7) System affairs under [section 2264 of this title](/usc/12/2264.md). Any notice of suspension or order of removal issued under this paragraph shall remain effective and outstanding until the completion of any hearing or appeal authorized under [subsection (b)](#b) unless terminated by the Farm [Credit](/usc/12/5481.md?p=7) Administration.
- (b) Within thirty days from service of any notice of suspension or order of removal issued under [subsection (a)](#a), the [director](/usc/12/2279bb.md?p=3), officer, or other [person](/usc/12/5481.md?p=19) concerned may request in writing an opportunity to appear before the Farm [Credit](/usc/12/5481.md?p=7) Administration to show that the continued service to or participation in the conduct of the affairs of the [institution](/usc/12/2271.md?p=3) by such individual does not, or is not likely to, pose a threat to the interest of the [institution](/usc/12/2271.md?p=3)’s shareholders or the investors in Farm [Credit](/usc/12/5481.md?p=7) System obligations or threaten to impair public confidence in the [institution](/usc/12/2271.md?p=3) or the Farm [Credit](/usc/12/5481.md?p=7) System. Upon receipt of any such request, the Farm [Credit](/usc/12/5481.md?p=7) Administration shall fix a time (not more than thirty days after receipt of such request, unless extended at the request of the concerned [director](/usc/12/2279bb.md?p=3), officer, or other [person](/usc/12/5481.md?p=19)) and place at which the [director](/usc/12/2279bb.md?p=3), officer, or other [person](/usc/12/5481.md?p=19) may appear, personally or through counsel, before the Chairman of the Farm [Credit](/usc/12/5481.md?p=7) Administration or designated employees of the Farm [Credit](/usc/12/5481.md?p=7) Administration to submit written materials (or, at the discretion of the Farm [Credit](/usc/12/5481.md?p=7) Administration, oral testimony) and oral argument. Within sixty days of such hearing, the Farm [Credit](/usc/12/5481.md?p=7) Administration shall notify the [director](/usc/12/2279bb.md?p=3), officer, or other [person](/usc/12/5481.md?p=19) whether the suspension or prohibition from participation in any manner in the conduct of the affairs of the [institution](/usc/12/2271.md?p=3) will be continued, terminated, or otherwise modified, or whether the order removing such [director](/usc/12/2279bb.md?p=3), officer, or other [person](/usc/12/5481.md?p=19) from [office](/usc/12/2279bb.md?p=4) or prohibiting such individual from further participation in any manner in the conduct of the affairs of the [institution](/usc/12/2271.md?p=3) will be rescinded or otherwise modified. Such notification shall contain a statement of the basis for the Farm [Credit](/usc/12/5481.md?p=7) Administration’s decision, if adverse to the [director](/usc/12/2279bb.md?p=3), officer, or other [person](/usc/12/5481.md?p=19). The Farm [Credit](/usc/12/5481.md?p=7) Administration may prescribe such rules as may be necessary to effectuate the purposes of this subsection.

## Source credit

(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.)

## Notes

### 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), substituted “may pose a threat to the interests of the institution’s shareholders or investors in Farm Credit System obligations or may threaten to impair public confidence in the institution or the Farm Credit System” for “may pose a threat to the interest of the institution’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 institution’s shareholders or the investors in Farm Credit System obligations or may threaten to impair public confidence in the institution or the Farm Credit System” 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.

### 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.