§2021 — Title 12 Banks and Banking | U.S. Code

Summary

Farm Credit Banks must make loans allowed under section 2015(a) through a Federal land bank association that serves the area where the borrower's real estate is located. If no such association exists, the bank may lend directly or use another institution, and the borrower must buy stock under the bank's bylaws.

Title 12, §2021

Banks and Banking — Source: USLM XML via OLRC

(a)The Farm Credit Banks shall, except as otherwise herein provided, make loans of the type authorized under section 2015(a) of this title through a Federal land bank association chartered to serve the territory in which the real estate of the borrower is located.

(b)If there is no active association chartered to serve territory where the real estate is located, the bank may make the loan directly or through such bank or trust company or savings or other financial institution as such bank may designate.

(c)When the loan is not made through a Federal land bank association, the applicant shall purchase stock in the bank in accordance with the capitalization requirements provided for in the bylaws of the bank.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 1.13 of Pub. L. 92–181 was classified to section 2031 of this title prior to the general amendment of this subchapter by Pub. L. 100–233, § 401.

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1622, provided that this section is effective 6 months after Jan. 6, 1988.

§2021 Loans through associations or agents