1. U.S. Code
  2. title 12
  3. chapter 23
  4. subchapter I
  5. § 2015

Collapse to view only § 2015. Lending authority

§ 2011. Establishment, charters, titles, branches
(a) Establishment
(b) Charters
(c) Title
(d) Branches
(Pub. L. 92–181, title I, § 1.3, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1622; amended Pub. L. 100–399, title IV, § 401(a), (b), Aug. 17, 1988, 102 Stat. 995.)

CITE AS: 12 USC 2011

§ 2012. Board of directors

Each Farm Credit Bank shall elect a board of directors of such number, for such term, in such manner, and with such qualifications, as may be required in its bylaws, except that, at least one member shall be elected by the other directors, which member shall not be a director, officer, employee, or stockholder of a System institution.

(Pub. L. 92–181, title I, § 1.4, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1622; amended Pub. L. 100–399, title IV, § 401(c), Aug. 17, 1988, 102 Stat. 995.)

CITE AS: 12 USC 2012

§ 2013. General corporate powersEach Farm Credit Bank shall be a body corporate and, subject to regulation by the Farm Credit Administration, shall have power to—
(1) adopt and use a corporate seal;
(2) have succession until dissolved under the provisions of this chapter or other Act of Congress;
(3) make contracts;
(4) sue and be sued;
(5) acquire, hold, dispose, and otherwise exercise all the usual incidents of ownership of real and personal property necessary or convenient to its business;
(6) make, participate in, and discount loans, make commitments for credit, accept advance payments, and provide services as authorized in this chapter, and charge fees for such;
(7) operate under the direction of its board of directors;
(8) provide by its board of directors for a president, one or more vice presidents, a secretary, a treasurer, and provide for such other officers, employees, and agents as may be necessary, as provided in this chapter, define their duties, and require surety bonds or make other provision against losses occasioned by employees;
(9) prescribe, by its board of directors, its bylaws that shall be consistent with law, and that shall provide for—
(A) the classes of its stock and the manner in which such stock shall be issued, transferred, and retired; and
(B) the manner in which it is to—
(i) select officers, employees, and agents;
(ii) acquire, hold, and transfer property;
(iii) make loans and discounts;
(iv) conduct general business; and
(v) exercise and enjoy the privileges granted to it by law;
(10) borrow money and issue notes, bonds, debentures, or other obligations individually, or in concert with one or more other banks of the System, of such character, terms, conditions, and rates of interest as may be determined as provided for in this chapter;
(11) purchase nonvoting stock in, or pay in surplus to, and accept deposits of securities or funds from associations in its district, and pay interest on such funds;
(12) participate with—
(A) one or more other Farm Credit Banks in loans under this subchapter on such terms as may be agreed on among such banks;
(B) one or more other Farm Credit System institutions in loans made under this subchapter or other subchapters of this chapter on the basis prescribed in section 2206 of this title; and
(C) lenders that are not Farm Credit System institutions in loans that the bank is authorized to make under this subchapter;
(13) approve the salary scale of the officers and employees of the associations in its district and supervise the exercise by such associations of the functions vested in or delegated to them;
(14) deposit the securities and current funds of the bank with any member bank of the Federal Reserve System or any insured State nonmember bank (within the meaning of section 1813 of this title) and pay fees and receive interest on such as may be agreed, and when designated for that purpose by the Secretary of the Treasury, such bank—
(A) shall be a depository of public money, except receipts from customs, under such regulations as may be prescribed by the Secretary;
(B) may be employed as a fiscal agent of the Government; and
(C) shall perform all such reasonable duties as a depository of public money or financial agent of the Government as may be required of such bank;
except that no Government funds deposited under the provisions of this paragraph shall be invested in loans or bonds or other obligations of the bank;
(15) buy and sell obligations of, or insured by, the United States or any agency thereof, or securities backed by the full faith and credit of any such agency, and make other investments as may be authorized under regulations issued by the Farm Credit Administration;
(16) sell to lenders that are not Farm Credit System institutions interests in loans, and buy from and sell to Farm Credit System institutions interests in loans and other extensions of credit, and nonvoting stock as may be authorized under regulations issued by the Farm Credit Administration;
(17) conduct studies and make and adopt standards for lending;
(18) delegate to associations such functions as the bank determines appropriate;
(19) amend and modify loan contracts, documents, and payment schedules, and release, subordinate, or substitute security for any of such items;
(20) for loans made by the bank, require associations to endorse notes and other obligations of borrowers from the bank;
(21) exercise through the board of directors or authorized officers, employees, or agents of the bank, all such incidental powers as may be necessary or expedient to carry on the business of the bank;
(22) accept contributions to the capital of the bank from associations and account for such in accordance with generally accepted accounting principles, except as may be authorized by the Farm Credit Administration;
(23) as may be authorized by the board of directors of the bank, agree with other Farm Credit System institutions to share loan and other losses, whether to protect against capital impairment or for any other purpose; and
(24) operate as an originator and become certified as a certified facility under subchapter VIII.
(Pub. L. 92–181, title I, § 1.5, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1623; amended Pub. L. 100–399, title IV, § 401(d), Aug. 17, 1988, 102 Stat. 995; Pub. L. 104–105, title II, § 201, Feb. 10, 1996, 110 Stat. 172.)

CITE AS: 12 USC 2013

§ 2014. Farm Credit Bank capitalization

In accordance with section 2154a of this title, the Farm Credit Banks shall provide, through bylaws and subject to Farm Credit Administration regulations, for the capitalization of the bank and the manner in which bank stock shall be issued, held, transferred, and retired and bank earnings distributed.

(Pub. L. 92–181, title I, § 1.6, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1624.)

CITE AS: 12 USC 2014

§ 2015. Lending authority
(a) Real estate loans and related assistance
(1) Real estate loans
(2) Financial assistance
(b) Intermediate credit
(1) In general
The Farm Credit Banks are authorized to make loans and extend other similar financial assistance to and to discount for or purchase from—
(A) any production credit association, or
(B) any national bank, State bank, trust company, agricultural credit corporation, incorporated livestock loan company, savings institution, credit union, or any association of agricultural producers engaged in the making of loans to farmers and ranchers, and any corporation engaged in the making of loans to producers or harvesters of aquatic products,
any note, draft, or other obligation with the institution’s endorsement or guarantee, the proceeds of which note, draft, or other obligation have been advanced to persons and for purposes eligible for financing by production credit associations as authorized by this chapter.
(2) Participation with other entities
(3) Limitations on extension of financial services
(A) General rule
(B) Limitation on national bank
(4) FCA regulations
(A) In general
(B) Requirement of regulations
The regulations shall assure that such loans, financial assistance, discounts, and purchases are available on a reasonable basis to any financing institution authorized to receive such services under paragraph (1)(B) of this subsection, and that—
(i) is significantly involved in lending for agricultural or aquatic purposes;
(ii) demonstrates a continuing need for supplementary sources of funds to meet the credit requirements of its agricultural or aquatic borrowers;
(iii) has limited access to national or regional capital markets; and
(iv) does not use such services to expand its financing activities to persons and for purposes other than those authorized under subchapter II.
(C) Fees
(D) Subsidiaries and affiliates
(5) Effective date
(Pub. L. 92–181, title I, § 1.7, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1625; amended Pub. L. 100–399, title IV, § 401(e), (f), Aug. 17, 1988, 102 Stat. 995, 996.)

CITE AS: 12 USC 2015

§ 2016. Interest rates and other charges
(a) In general
(b) Setting rates and charges
(Pub. L. 92–181, title I, § 1.8, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1626; amended Pub. L. 100–399, title IV, § 401(g), Aug. 17, 1988, 102 Stat. 996.)

CITE AS: 12 USC 2016

§ 2017. Eligibility
The credit and financial services authorized in this subchapter may be made available to persons who are or become stockholders or members of the bank or associations in the district, and who are—
(1) bona fide farmers, ranchers, or producers or harvesters of aquatic products;
(2) persons furnishing to farmers and ranchers farm-related services directly related to their on-farm operating needs; or
(3) owners of rural homes.
(Pub. L. 92–181, title I, § 1.9, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1626.)

CITE AS: 12 USC 2017

§ 2018. Security; terms
(a) Real estate loans
(1) Maximum level of loans
(A) In general
(B) Regulation
(C) Guaranteed loans
(D) Private mortgage insurance
(2) Security
(3) Value of security
(4) Additional security
(b) Intermediate credit
(Pub. L. 92–181, title I, § 1.10, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1627; amended Pub. L. 100–399, title IV, § 401(h), (i), Aug. 17, 1988, 102 Stat. 996; Pub. L. 104–105, title II, §§ 202, 203, Feb. 10, 1996, 110 Stat. 172.)

CITE AS: 12 USC 2018

§ 2019. Purposes for extensions of credit
(a) Agricultural or aquatic purposes
(1) In general
(2) Limitation on loans for basic processing and marketing operations
(b) Rural housing financing
(1) In general
(2) Limitations
(3) Rural areas
(c) Farm-related services
(1) In general
(2) Facilities
(Pub. L. 92–181, title I, § 1.11, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1627; amended Pub. L. 100–399, title IV, § 401(j), Aug. 17, 1988, 102 Stat. 996; Pub. L. 101–624, title XVIII, § 1832(a), Nov. 28, 1990, 104 Stat. 3832; Pub. L. 102–237, title V, § 502(a), Dec. 13, 1991, 105 Stat. 1868.)

CITE AS: 12 USC 2019

§ 2020. Related services
(a) In general
(b) Authority to pass along cost of insurance premiums
(1) In general
(2) Computation
(Pub. L. 92–181, title I, § 1.12, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1628; amended Pub. L. 100–399, title IV, § 401(k), Aug. 17, 1988, 102 Stat. 996; Pub. L. 101–220, § 6(b)(1), (2), Dec. 12, 1989, 103 Stat. 1880; Pub. L. 104–105, title II, § 215(a)(2)(C), Feb. 10, 1996, 110 Stat. 176; Pub. L. 107–171, title V, § 5403(a)(2)(A), May 13, 2002, 116 Stat. 350; Pub. L. 110–234, title V, § 5401(a), May 22, 2008, 122 Stat. 1154; Pub. L. 110–246, § 4(a), title V, § 5401(a), June 18, 2008, 122 Stat. 1664, 1915.)

CITE AS: 12 USC 2020

§ 2021. Loans through associations or agents
(a) In general
(b) No active association
(c) Purchase of stock required
(Pub. L. 92–181, title I, § 1.13, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1628.)

CITE AS: 12 USC 2021

§ 2022. Liens on stock

The Farm Credit Banks shall have a first lien on the stock or participation certificates it issues for the payment of any liability of the stockholders to the bank.

(Pub. L. 92–181, title I, § 1.14, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1629.)

CITE AS: 12 USC 2022

§ 2023. Taxation

The Farm Credit Banks and the capital, reserves, and surplus thereof, and the income derived therefrom, shall be exempt from Federal, State, municipal, and local taxation, except taxes on real estate held by a Farm Credit Bank to the same extent, according to its value, as other similar property held by other persons is taxed. The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).

(Pub. L. 92–181, title I, § 1.15, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1629; amended Pub. L. 100–399, title IV, § 401(l), Aug. 17, 1988, 102 Stat. 997.)

CITE AS: 12 USC 2023