Page:United States Statutes at Large Volume 110 Part 1.djvu/206

 110 STAT. 182 PUBLIC LAW 104-105—FEB. 10, 1996 "(ii) 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 "(iii) a payment made by reason of the death or disability of an institution-related party. "(2) INDEMNIFICATION PAYMENT.—The term 'indemnification payment' means a payment (or any agreement to make a payment) by any Farm Credit System institution for the benefit of any person who is or was an institution-related party, to pay or reimburse the person for any liability or legal expense with regard to any administrative proceeding or civil action instituted by the Farm Credit Administration that results in a final order under which the person— "(A) is assessed a civil money penalty; or "(B) is removed or prohibited from participating in the conduct of the affairs of the institution. "(3) INSTITUTION-RELATED PARTY.—The term 'institutionrelated party' means— "(A) a director, officer, employee, or agent for a Farm Credit System institution or any conservator or receiver of such an institution; "(B) 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 "(C) 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 smy 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. "(4) LIABILITY OR LEGAL EXPENSE.— The term liability or legal expense' means— "(A) a legal or other professional expense incurred in connection with any claim, proceeding, or action; "(B) the amount of, and any cost incurred in connection with, any settlement of any claim, proceeding, or action; and "(C) the amount of, and any cost incurred in connection with, any judgment or penalty imposed with respect to any claim, proceeding, or action. "(5) PAYMENT.— The term 'payment' meeins— "(A) a direct or indirect transfer of any funds or any asset; and "(B) any segregation of any funds or assets for the purpose of making, or under an agreement to make, any payment after the date on which the funds or assets are segregated, without regard to whether the obligation to make the payment is contingent on— "(i) the determination, after that date, of the liability for the payment of the amount; or "(ii) the liquidation, after that date, of the amount of the payment.

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