§2015 Lending authority

Summary

Farm Credit Banks can make or join in long-term real estate mortgage loans in rural areas or to people who produce or harvest aquatic products. Those loans must be for at least 5 years and no more than 40 years. They can also help Federal land bank associations by buying or discounting notes those associations endorse, under section 2279b(a). They may lend to or buy paper from production credit associations and various banks, loan companies, credit unions, and producer associations that lend to farmers or aquatic producers. They cannot buy or lend if doing so would push a borrower’s total liabilities (except true deposits) above ten times its paid-in and unimpaired capital and surplus or above whatever legal limit applies, whichever is less. National banks already owing money to a Farm Credit Bank may not take on more debt that would break that rule. All actions must follow Farm Credit Administration rules, may require collateral, be reasonably available to eligible agricultural or aquatic lenders who need extra funds and have limited access to markets, and may include reasonable fees. A bank may treat a lender and its affiliates as one for these rules; initial decisions are by the bank and denials can be reviewed by the Farm Credit Administration. Existing discount relationships in place on December 24, 1980 may continue.