---
kind: "section"
citation: "12 U.S.C. § 2268"
title: "12"
title_heading: "Banks and Banking"
number: "2268"
heading: "Penalty"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/2268"
units:
  - "Chapter 23 — Farm Credit System"
  - "Subchapter V — Farm Credit Administration Organization"
  - "Part C — Enforcement Powers of Farm Credit Administration"
---

# §2268. Penalty

- (a) **Forfeiture and payment; compromise, modification, or remitting by Farm Credit Administration; assessment and collection by written notice—** Any [institution in the System](/usc/12/2271.md?p=3) that violates or any officer, [director](/usc/12/2279bb.md?p=3), 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) who violates the terms of any order that has become final and was issued under section [2261](/usc/12/2261.md) or [2262](/usc/12/2262.md) of this title, shall forfeit and pay a civil penalty of not more than $1,000 per day for each day during which such [violation](/usc/12/2271.md?p=2) continues. Any such [institution](/usc/12/2271.md?p=3) or [person](/usc/12/5481.md?p=19) who violates any provision of this chapter or any regulation issued under this chapter shall forfeit and pay a civil penalty of not more than $500 per day for each day during which such [violation](/usc/12/2271.md?p=2) continues. Notwithstanding the preceding sentences, the Farm [Credit](/usc/12/5481.md?p=7) Administration may, in its discretion, compromise, modify, or remit any civil money penalty that is subject to imposition or has been imposed under such authority. The penalty may be assessed and collected by the Farm [Credit](/usc/12/5481.md?p=7) Administration by written notice.
- (b) **Factors determining amount—** Before determining whether to assess a civil money penalty and determining the amount of such penalty, the Farm [Credit](/usc/12/5481.md?p=7) Administration shall notify the [institution](/usc/12/2271.md?p=3) or [person](/usc/12/5481.md?p=19) to be assessed of the [violation](/usc/12/2271.md?p=2) or [violations](/usc/12/2271.md?p=2) alleged to have occurred or to be occurring, and shall solicit the views of the [institution](/usc/12/2271.md?p=3) or [person](/usc/12/5481.md?p=19) regarding the imposition of such penalty. In determining the amount of the penalty, the Farm [Credit](/usc/12/5481.md?p=7) Administration shall take into account the appropriateness of the penalty with respect to the size of financial resources and good faith of the [System institution](/usc/12/2271.md?p=3) or [person](/usc/12/5481.md?p=19) charged, the gravity of the [violation](/usc/12/2271.md?p=2), the history of previous [violations](/usc/12/2271.md?p=2), and such other matters as justice may require.
- (c) **Notice and hearing; final orders—** The [System institution](/usc/12/2271.md?p=3) or [person](/usc/12/5481.md?p=19) assessed shall be afforded an opportunity for a hearing by the Farm [Credit](/usc/12/5481.md?p=7) Administration, upon request made within ten days after issuance of the notice of assessment. In such hearing all issues shall be determined on the record pursuant to [section 554 of title 5](/usc/5/554.md). The Farm [Credit](/usc/12/5481.md?p=7) Administration determination shall be made by final order which may be reviewed only as provided in [subsection (d)](#d). If no hearing is requested as herein provided, the assessment shall constitute a final and unappealable order.
- (d) **Judicial review—** Any [System institution](/usc/12/2271.md?p=3) or [person](/usc/12/5481.md?p=19) against whom an order imposing a civil money penalty has been entered after a Farm [Credit](/usc/12/5481.md?p=7) Administration hearing under this section may obtain review by the United States court of appeals for the circuit in which the home [office](/usc/12/2279bb.md?p=4) of the [System institution](/usc/12/2271.md?p=3) is located, or the United States Court of Appeals for the District of Columbia Circuit, by filing a notice of appeal in such court within twenty days after the service of such order, and simultaneously sending a copy of such notice by registered or certified mail to the Farm [Credit](/usc/12/5481.md?p=7) Administration. The Farm [Credit](/usc/12/5481.md?p=7) Administration shall promptly certify and file in such Court the record upon which the penalty was imposed, as provided in [section 2112 of title 28](/usc/28/2112.md). Final orders of the Farm [Credit](/usc/12/5481.md?p=7) Administration issued under [subsection (c)](#c) shall be reviewable under chapter 7 of title 5.
- (e) **Action by Attorney General to recover amount assessed—** If any [System institution](/usc/12/2271.md?p=3) or [person](/usc/12/5481.md?p=19) fails to pay an assessment after it has become a final and unappealable order, or after the court of appeals has entered final judgment in favor of the Farm [Credit](/usc/12/5481.md?p=7) Administration, the Farm [Credit](/usc/12/5481.md?p=7) Administration shall refer the matter to the Attorney General, who shall recover the amount assessed by action in the appropriate United States district court. In such action, the validity and appropriateness of the final order imposing the penalty shall not be subject to review.
- (f) **Rules and regulations—** The Farm [Credit](/usc/12/5481.md?p=7) Administration shall promulgate regulations establishing procedures necessary to implement [section 2267 of this title](/usc/12/2267.md) and this section.
- (g) **Payment into Treasury—** All penalties collected under authority of this section shall be covered into the Treasury of the United States.
- (h) **Directives as final orders—** For purposes of this section, any directive issued under section [2154(b)(2)](/usc/12/2154.md?p=b-2), [2154a(e)](/usc/12/2154a.md?p=e), or [2202a(h)](/usc/12/2202a.md?p=h) of this title shall be treated as an order that has become final and was issued under [section 2261 of this title](/usc/12/2261.md).

## Source credit

(Pub. L. 92–181, title V, § 5.32, as added Pub. L. 99–205, title II, § 204, Dec. 23, 1985, 99 Stat. 1700; amended Pub. L. 100–233, title IV, § 423, title VIII, §§ 804(a)(2), 805(dd), Jan. 6, 1988, 101 Stat. 1656, 1714, 1717; Pub. L. 115–334, title V, § 5411(33), Dec. 20, 2018, 132 Stat. 4683.)

## Notes

### Editorial Notes

### Amendments

2018—Subsec. (h). Pub. L. 115–334 substituted “2202a(h)” for “2202a(i)”.

1988—Subsec. (a). Pub. L. 100–233, § 423(a), substituted “continues. Any such institution or person who violates any provision of this chapter or any regulation issued under this chapter shall forfeit and pay a civil penalty of not more than $500 per day for each day during which such violation continues. Notwithstanding the preceding sentences,” for “continues, but”.

Subsec. (b). Pub. L. 100–233, § 423(b), inserted “Before determining whether to assess a civil money penalty 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 alleged to have occurred or to be occurring, and shall solicit 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 Administration shall be set aside if found to be unsupported by substantial evidence as provided by section 706(2)(E) of title 5”.

Subsec. (f). Pub. L. 100–233, § 805(dd), substituted “section 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.