PART 622—RULES OF PRACTICE AND PROCEDURE Authority: Secs. 5.9, 5.10, 5.17, 5.25-5.37 of the Farm Credit Act (12 U.S.C. 2243, 2244, 2252, 2261-2273); 28 U.S.C. 2461 note; and 42 U.S.C. 4012a(f). Source: 51 FR 21139, June 11, 1986, unless otherwise noted. Subpart A—Rules Applicable to Formal Hearings § 622.1 Scope of regulations. This subpart prescribes rules of practice and procedure in connection with any formal hearing before the Farm Credit Administration (FCA) that is required by the Farm Credit Act of 1971, as amended (Act) or is ordered for other reasons by the FCA. In connection with any particular matter, reference should also be made to any special requirements of practice and procedure that may be contained in applicable provisions of the Act or the rules adopted by the FCA in subpart B of this part, which special requirements are controlling. The rules in subpart A do not apply to the informal hearings described in subpart C of this part, to any other informal hearing that may be ordered by the FCA, or to formal investigations described in subpart D of this part. § 622.2 Definitions. As used in this part: (a) Act et seq. (b) FCA (c) Board (d) The terms institution in the System, System institution institution (e) Party (f) Presiding officer (g) Ex parte communication [51 FR 21139, June 11, 1986, as amended at 53 FR 27284, July 19, 1988; 78 FR 31835, May 28, 2013] § 622.3 Appearance and practice. (a) Appearance before the Board or a presiding officer By nonattorneys. (2) By attorneys. (3) Representation of multiple interests. (b) Summary suspension. § 622.4 Commencement of proceedings. Proceedings under this subpart are commenced by the issuance of a notice by the Board. Such notice shall state the time, place, and nature of the hearing, the name and address of the presiding officer if one has been designated, and a statement of the matters of fact and law constituting the grounds for the hearing. The matters of fact and law alleged in a notice may be amended by the Board at any stage of the proceeding and such amended notice may require an answer from the party or parties served and may set a new hearing date. A copy of any notice served by the FCA on any System association, director, officer or other person participating in the conduct of the affairs of the association will also be sent to the supervisory bank. § 622.5 Answer. (a) Answer is required. (b) Requirements of answer; effect of failure to deny. (c) Admitted allegations. (d) Effect of failure to answer. § 622.6 Opportunity for informal settlement. Any interested party may at any time submit to the Board for consideration written offers or proposals for settlement of a proceeding, without prejudice to the rights of the parties. No offer or proposal shall be admissible into evidence over the objection of any party in any hearing in connection with such proceeding. The foregoing provisions of this section shall not preclude settlement of any proceeding through the regular adjudicatory process by the filing of an answer as provided in § 622.5(c), or by submission of the case to the presiding officer on a stipulation of facts and an agreed order. § 622.7 Conduct of hearings. (a) Authority of presiding officer. (1) To administer oaths and affirmations; (2) To issue subpoenas and subpoenas duces tecum, as authorized by law, and to revoke, quash, or modify any such subpoena; (3) To receive relevant evidence and to rule upon the admission of evidence and offers of proof; (4) To take or cause depositions to be taken; (5) To regulate the course of the hearing and the conduct of the parties and their counsel; (6) To hold conferences for the settlement or simplification of issues or for any proper purpose; and (7) To consider and rule upon, as justice may require, all procedural and other motions appropriate in a proceeding under this subpart, except that a presiding officer shall not have power to decide any motion to dismiss the proceeding or other motion which results in a final determination of the merits of the proceeding. This power rests only with the Board. Without limitation on the foregoing, the presiding officer shall, subject to the provisions of this subpart, have all the authority set forth in 5 U.S.C. 556(c). (b) Prehearing conference. (1) Simplification and clarification of the issues; (2) Stipulations, admissions of fact and of the contents and authenticity of documents; (3) Matters of which official notice will be taken; and (4) Such other matters as may aid in the orderly disposition of the proceeding. At the conclusion of such conference(s) the presiding officer shall enter an order which recites the results of the conference. Such order shall include the presiding officer's rulings upon matters considered at the conference, together with appropriate directions, if any, to the parties. Such order shall control the subsequent course of the proceeding, unless modified at the hearing for good cause shown. (c) Exchange of information. (d) Attendance at hearings. (e) Transcript of testimony. (f) Continuances and changes or extensions of time and changes of place of hearing. (g) Closing of hearing. (h) Call for further evidence, oral arguments, briefs, reopening of hearing. (i) Order of procedure. (j) Ex parte communications. (2) No person who is or may reasonably be expected to be involved in the decisional process shall make or knowingly cause to be made an ex parte communication relevant to the merits of the proceeding to any person. (3) Except as authorized by law, the presiding officer shall not consult anyone on any fact in issue, unless upon notice and opportunity for all parties to participate. The presiding officer shall not be responsible to, or subject to the supervision or direction of, any officer, employee, or agent of the FCA engaged in the performance of investigative or prosecuting functions. An officer, employee or agent engaged in the performance of such functions in any case shall not, in that case or a factually related case, participate or advise in the decision of the presiding officer, except as a witness or counsel in the proceedings, or as otherwise authorized by law. (4) If an ex parte communication is made or knowingly caused to be made, all such communications, and any responses, shall be placed in the record. (5) Upon receipt of a communication knowingly made or caused to be made in violation of paragraph (j) of this section, the responsible party may be required to show cause why such party's claim or interest should not be dismissed, denied, or otherwise adversely affected. To the extent consistent with the interests of justice, a knowing violation of paragraph (j) of this section may be grounds for a decision adverse to a party in violation. (6) The prohibitions against ex parte communications apply from the time a proceeding is noticed for hearing. However, when the person responsible for the communication has knowledge that the proceeding will be noticed, the prohibitions apply from the time such knowledge is acquired. § 622.8 Rules of evidence. (a) Evidence. (b) Objections. (c) Stipulations. (d) Official notice. § 622.9 Subpoenas. (a) Issuance. (b) Motions to quash. (c) Service of subpoena. (d) Attendance of witnesses. (e) Production of documents. § 622.10 Depositions. (a) Application to take deposition. (b) Subpoena; notice to other parties. (c) Deposition by notice. (d) Procedure on deposition. (e) Introduction as evidence. (f) Payment of fees. § 622.11 Motions. (a) How made. (b) Opposition. (c) Oral argument. (d) Rulings and orders. (e) Appeal from rulings on motions. (f) Continuation of hearing. § 622.12 Proposed findings and conclusions; recommended decision. (a) Proposed findings and conclusions by parties. (b) Recommended decision by presiding officer. (c) Board as presiding officer. § 622.13 Exceptions. (a) Filing. (b) Contents. (c) Waiver. § 622.14 Briefs. (a) Contents. (b) Reply briefs. (c) Delayed filing. § 622.15 Oral argument before the Board. Upon its own initiative or upon written request by any party, the Board, in its discretion, may order the matter to be set down for oral argument before the Board or one or more members thereof. Any request for oral argument by a party filing exceptions shall be made within the time prescribed for filing such exceptions, or by any other party, within the time prescribed for the filing of a reply brief. Oral argument before the Board shall be recorded unless otherwise ordered by the Board. § 622.16 Notice of submission to the Board. Upon the filing of the record with the Board, and upon the expiration of the time for the filing of exceptions and all briefs, including reply briefs or any further briefs permitted by the presiding officer or the Board, and upon the hearing of oral argument by the Board, if ordered by the Board, the Board shall notify the parties in writing that the case has been submitted for final decision. § 622.17 Decision of the Board. Any person who has not engaged in the performance of investigative or prosecuting functions in the case, or in a factually related case, may advise and assist the Board in the consideration of the case. Copies of the decision and order of the Board shall be served upon the parties. A copy of the order will also be sent to the supervisory bank if the order relates to a System association, director, officer, or other person participating in the conduct of the affairs of the association. § 622.18 Filing. (a) Filing. (b) Formal requirements. (c) Copies. § 622.19 Service. (a) Service. (b) Proof of service. § 622.20 Documents in proceedings confidential. Unless otherwise ordered by the Board or required by law, the entire record in any proceeding under this subpart, including the notice of hearing, transcript, exhibits, proposed findings and conclusions, recommended decision of the presiding officer, exceptions thereto, decision and order of the Board, and any other papers which are filed in connection with the proceeding shall not be made public, and shall be for the confidential use only of the FCA and its staff, the presiding officer, the parties, and other appropriate supervisory authorities. § 622.21 Computing time. (a) General rule. (b) Service by mail. § 622.22 Retained authority. Nothing is this part is in derogation of powers of examination and investigation conferred on the FCA by any provision of law. §§ 622.23-622.50 [Reserved] Subpart B—Rules and Procedures for Assessment and Collection of Civil Money Penalties Source: 53 FR 27284, July 19, 1988, unless otherwise noted. § 622.51 Definitions. Unless noted otherwise, the definitions set forth in § 622.2 of subpart A shall apply to this subpart. § 622.52 Purpose and scope. The rules and procedures specified in this subpart and in subpart A are applicable to proceedings by the FCA to assess and collect civil money penalties: (a) For violations of the terms of a final cease and desist order issued under section 5.25 or 5.26 of the Act; (b) For violations of any provision of the Act or any regulation issued under the Act; or (c) For violations of the National Flood Insurance Reform Act (Reform Act) as set forth in 42 U.S.C. 4012a(f) or any regulation issued under the Reform Act. [51 FR 21139, June 11, 1986, as amended at 70 FR 12584, Mar. 15, 2005] §§ 622.53-622.54 [Reserved] § 622.55 Notice of assessment of civil money penalty. (a) Notice of assessment. (1) The legal authority for the assessment; (2) The amount of the civil money penalty being assessed; (3) The date by which the civil money penalty must be paid; (4) The matter of fact or law constituting the grounds for assessment of the civil money penalty; (5) The right of the institution or person being assessed to a formal hearing to challenge the assessment; (6) That failure to request a hearing constitutes a waiver of the opportunity for a hearing and the notice of assessment will constitute a final and unappealable order; and (7) The time limit to request such a formal hearing. (b) Service. [51 FR 21139, June 11, 1986, as amended at 70 FR 12585, Mar. 15, 2005] § 622.56 Request for formal hearing on assessment. An institution or person being assessed may request a formal hearing to challenge the assessment of a civil money penalty. The request must be filed in writing, within 10 days of the issuance of the notice of assessment, with the Chairman of the Board, FCA, 1501 Farm Credit Drive, McLean, VA 22102-5090. § 622.57 Waiver of hearing; consent. (a) Waiver. (b) Consent. [51 FR 21139, June 11, 1986, as amended at 70 FR 12585, Mar. 15, 2005] § 622.58 Hearing on assessment. (a) Time and place. (b) Answer; procedures. [51 FR 21139, June 11, 1986, as amended at 70 FR 12585, Mar. 15, 2005] § 622.59 Assessment order. (a) Consent. (b) Effective date and period. (c) Service. [51 FR 21139, June 11, 1986, as amended at 70 FR 12585, Mar. 15, 2005] § 622.60 Payment of civil money penalty. (a) Payment date. (b) Method of payment. [70 FR 12585, Mar. 15, 2005] § 622.61 Adjustment of civil money penalties by the rate of inflation under the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended. (a) The maximum amount of each civil money penalty within FCA's jurisdiction is adjusted in accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended (28 U.S.C. 2461 note (1) Amount of civil money penalty imposed under section 5.32 of the Act for violation of a final order issued under section 5.25 or 5.26 of the Act: The maximum daily amount is $2,904 for violations that occur on or after January 15, 2025. (2) Amount of civil money penalty for violation of the Act or regulations: the maximum daily amount is $1,313 for each violation that occurs on or after January 15, 2025. (b) The maximum civil money penalty amount assessed under 42 U.S.C. 4012a(f) is $2,730 for each violation that occurs on or after January 15, 2025, with no cap on the total amount of penalties that can be assessed against any single institution during any calendar year. [90 FR 3618, Jan. 15, 2025] §§ 622.62-622.75 [Reserved] Subpart C—Rules and Procedures Applicable to Suspension or Removal of an Individual Where Certain Crimes Are Charged or Proven § 622.76 Definitions. Unless noted otherwise, the definitions set forth in § 622.2 of subpart A shall apply to this subpart. § 622.77 Purpose and scope. The rules and procedures set forth in this subpart apply to informal hearings afforded to any officer, director, or other person participating in the conduct of the affairs of a System institution who has been suspended or removed from office or prohibited from further participation in any manner in the conduct of the institution's affairs by a notice or order issued by the Board upon the grounds set forth in section 5.29 of the Act. § 622.78 Suspension, prohibition or removal. (a) Content. (b) Service. § 622.79 Petition for informal hearing. (a) Filing. (b) Content. (1) State whether the petitioner is requesting termination or modification of the notice or order; (2) State with particularity how the petitioner intends to show that his or her continued service to or participation in the conduct of the affairs of the institution would not, or is not likely to, pose a threat to the interests of the institution's shareholders or the investors in Farm Credit System obligations or threaten to impair public confidence in the institution or the Farm Credit System; (3) Include a request to present oral testimony or witnesses at the hearing, if the petitioner desires to do so. The request should specify the names of the witnesses and a summary of their expected testimony; and (4) Indicate whether the petitioner desires oral argument or elects to have the matter determined solely on the basis of written submissions. § 622.80 Informal hearing. (a) Time and place. (b) Appearance. (c) Written material. (d) Oral testimony. (e) Transcripts. (f) Closing of record. (g) Rules of evidence and procedure. § 622.81 Default. If the subject individual fails to file a petition for a hearing, or fails to appear at a hearing, either in person or by an attorney, or fails to submit a written argument where oral argument has been waived, the notice shall remain in effect until the information, indictment, or complaint is finally disposed of and the order shall remain in effect until terminated by the Board. § 622.82 Decision of the Board. (a) Recommended decision. (b) Final decision. (c) Guilt not an issue. (d) Effective period. (e) Reconsideration. §§ 622.83-622.100 [Reserved] Subpart D—Rules and Procedures Applicable to Formal Investigations § 622.101 Definitions. Unless noted otherwise, the definitions set forth in § 622.2 of subpart A shall apply to this subpart. § 622.102 Scope. The rules in this subpart apply to formal investigations initiated by order of the Board and pertain to the exercise of powers specified in section 5.37 of the Act. These rules do not restrict or in any way affect the authority of the FCA, including but not limited to the powers enumerated in section 5.37 of the Act, to conduct examinations of System institutions. § 622.103 Formal investigations are confidential. Information or documents obtained or testimony recorded in the course of a formal investigation shall be confidential and shall be disclosed only in accordance with the provisions of 12 CFR part 602. § 622.104 Order to conduct formal investigation. A formal investigation begins with the issuance of an order by the Board. The order shall designate the person or persons who will conduct the investigation, issue, revoke, quash or modify subpoenas and subpoenas duces tecum, take or cause to be taken depositions, administer oaths, and receive affirmations as to any matter under investigation by the FCA. Upon application and for good cause shown, the Board may limit, modify, or withdraw the order at any stage of the proceeding. § 622.105 Conduct of investigation. (a) Review of order. (b) Right to counsel. (1) Advise such person before, during and after the conclusion of testimony; (2) Question such person briefly at the conclusion of testimony to clarify any of the answers given; and (3) Make summary notes during the testimony solely for the use of such person. (c) Appearance. (d) Exclusion. (2) The designated FCA representative conducting the investigation shall report to the Board any instances where any person has been guilty of dilatory, obstructionist, egregious, contemptuous, contumacious or other unethical or improper conduct during the course of the proceeding or any other instance involving a violation of these rules. The Board may thereupon take such action as the circumstances may warrant, including exclusion of the offending individual or individual from participation in the proceeding. § 622.106 Service of subpoena and payment of witness fees. (a) Service. (b) Motions to quash. (1) Deny the application; (2) Quash or revoke the subpoena; (3) Modify the subpoena; or (4) Condition the granting of the application on such terms as the FCA representative or the Board, determines in his, her, or its discretion, to be just, reasonable, and proper. § 622.107 Transcripts. Transcripts, if any, of an investigative proceeding shall be recorded by any means authorized by the designated FCA representative conducting the investigation. A person who has given testimony in an investigative proceeding (or counsel for such person) upon proper identification shall have the right to inspect the transcript of the person's testimony but may not obtain a copy if the FCA's representative conducting the investigation has cause to believe that the contents should not be disclosed.