12 U.S.C. § 2277a: Authority to regulate golden parachute and indemnification payments

is contingent on the termination of the party’s relationship with the institution; and the institution is insolvent; a conservator or receiver is appointed for the institution; the institution has been assigned by the Farm Credit Administration a composite CAMEL rating of 4 or 5 under the Farm Credit Administration Rating System, or an equivalent rating; or the Corporation otherwise determines that the institution is in a troubled condition (as defined in regulations issued by the Corporation); and includes a payment that would be a golden parachute payment but for the fact that the payment was made before the date referred to in subparagraph (A)(ii) if the payment was made in contemplation of the occurrence of an event described in any subclause of subparagraph (A); but a payment made under a retirement plan that is qualified (or is intended to be qualified) under section 401 of title 26 or other nondiscriminatory benefit plan; a payment made under a bona fide supplemental executive retirement plan, deferred compensation plan, or other arrangement that the Corporation determines, by regulation or order, to be permissible; or a payment made by reason of the death or disability of an institution-related party. is assessed a civil money penalty; or is removed or prohibited from participating in the conduct of the affairs of the institution. a director, officer, employee, or agent for a Farm Credit System institution or any conservator or receiver of such an institution; a stockholder (other than another Farm Credit System institution), consultant, joint venture partner, or any other person determined by the Farm Credit Administration to be a participant in the conduct of the affairs of a Farm Credit System institution; and an independent contractor (including any attorney, appraiser, or accountant) that knowingly or recklessly participates in any violation of any law or regulation, any breach of fiduciary duty, or any unsafe or unsound practice that caused or is likely to cause more than a minimal financial loss to, or a significant adverse effect on, the Farm Credit System institution. a legal or other professional expense incurred in connection with any claim, proceeding, or action; the amount of, and any cost incurred in connection with, any settlement of any claim, proceeding, or action; and the amount of, and any cost incurred in connection with, any judgment or penalty imposed with respect to any claim, proceeding, or action. a direct or indirect transfer of any funds or any asset; and the determination, after that date, of the liability for the payment of the amount; or the liquidation, after that date, of the amount of the payment. The Corporation may prohibit or limit, by regulation or order, any golden parachute payment or indemnification payment by a Farm Credit System institution (including any conservator or receiver of the Federal Agricultural Mortgage Corporation) in troubled condition (as defined in regulations issued by the Corporation). whether there is a reasonable basis to believe that an institution-related party has committed any fraudulent act or omission, breach of trust or fiduciary duty, or insider abuse with regard to the Farm Credit System institution involved that has had a material effect on the financial condition of the institution; whether there is a reasonable basis to believe that the institution-related party is substantially responsible for the insolvency of the Farm Credit System institution, the appointment of a conservator or receiver for the institution, or the institution’s troubled condition (as defined in regulations prescribed by the Corporation); whether there is a reasonable basis to believe that the institution-related party has materially violated any applicable law or regulation that has had a material effect on the financial condition of the institution; section 215, 657, 1006, 1014, or 1344 of title 18; or section 1341 or 1343 of title 18, affecting a Farm Credit System institution; whether the institution-related party was in a position of managerial or fiduciary responsibility; and the payment reasonably reflects compensation earned over the period of employment; and the compensation represents a reasonable payment for services rendered. in contemplation of the insolvency of the institution or after the commission of an act of insolvency; and preventing the proper application of the assets of the institution to creditors; or preferring 1 creditor over another creditor. prohibits any Farm Credit System institution from purchasing any commercial insurance policy or fidelity bond, so long as the insurance policy or bond does not cover any legal or liability expense of an institution described in subsection (a)(2); or limits the powers, functions, or responsibilities of the Farm Credit Administration.