DEFINITION OF INSTITUTION-AFFILIATED PARTY.

SEC. 5408. DEFINITION OF INSTITUTION-AFFILIATED PARTY. Section 5.35 of the Farm Credit Act of 1971 (12 U.S.C. 2271) is amended— (1) in paragraph (3), by striking “and” at the end; (2) by redesignating paragraph (4) as paragraph (5); and (3) by inserting after paragraph (3) the following: “(4) the term ‘institution-affiliated party’ means— “(A) a director, officer, employee, shareholder, or agent of a System institution; “(B) an independent contractor (including an attorney, appraiser, or accountant) who knowingly or recklessly participates in— “(i) a violation of law (including regulations) that is associated with the operations and activities of 1 or more System institutions; “(ii) a breach of fiduciary duty; or “(iii) an unsafe practice that causes or is likely to cause more than a minimum financial loss to, or a significant adverse effect on, a System institution; and “(C) any other person, as determined by the Farm Credit Administration (by regulation or on a case-by-case basis) who participates in the conduct of the affairs of a System institution; and” .