§2093 — Title 12 Banks and Banking | U.S. Code

Summary

Each Federal land bank association must be a corporation. It is run under the supervision of the Farm Credit Bank for its district and the rules of the Farm Credit Administration. The association can use a corporate seal, make contracts, sue and be sued, own and sell property, and continue to exist until Congress orders it dissolved. A board of directors must run the association, hire a manager and other staff, set their duties and require protections against employee losses. A director may not become a paid employee of the same association within one year after leaving the board. The board must write bylaws about stock, officers, property, business operations, and how it will use its legal powers. The association can take loan applications, get loan funds from the Farm Credit Bank and give them to borrowers, buy stock in the Farm Credit Bank, and have a loan committee (or delegate those duties). It may agree with the bank to handle more bank functions, endorse loans and accept liability, charge fees, offer technical and financial services with bank and regulator approval, borrow money with bank approval, buy or invest in government or Farm Credit securities under regulator rules, deposit funds with insured banks, do other functions the bank delegates, contribute to the bank’s capital, and operate as an originator and be certified under subchapter VIII.

Title 12, §2093

Banks and Banking — Source: USLM XML via OLRC

Each Federal land bank association shall be a body corporate and, subject to supervision of the Farm Credit Bank for the district and the regulation of the Farm Credit Administration, shall have the 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 of the usual incidents of ownership of real estate and personal property necessary or convenient to the business of the association;

(6)operate under the direction of the board of directors of the association in accordance with this chapter;

(7)provide by its board of directors for a manager or other chief executive officer, and provide for such other officers or employees as may be necessary, including joint employees as provided in this chapter, define the duties of such, and require surety bonds or make other provision against losses occasioned by employees, except that no director shall, within one year after the date when such director ceases to be a member of the board, serve as a salaried employee of the association on the board of which such director served;

(8)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 and employees;

(ii)acquire, hold, and transfer property;

(iii)conduct general business; and

(iv)exercise and enjoy the privileges granted to it by law;

(9)accept applications for Farm Credit Bank loans and receive from such bank and disburse to the borrowers the proceeds of such loans;

(10)subscribe to stock of the Farm Credit Bank of the district;

(11)elect by its board of directors a loan committee with power to elect applicants for membership in the association and recommend loans to the Farm Credit Bank, or with the approval of the Farm Credit Bank, delegate the election of applicants for membership and the approval of loans within specified limits to other committees or to authorized employees of the association;

(12)on agreement with the bank, take such additional actions with respect to applications and loans and perform such functions as are vested by law in the Farm Credit Banks as may be agreed to by the association;

(13)endorse and become liable to the bank on loans it makes to association members;

(14)receive such compensation and deduct such sums from loan proceeds with respect to each loan as may be agreed between the association and the bank and make such other charges for services as may be approved by the bank;

(15)provide technical assistance to members, borrowers, applicants, and other eligible persons and make available to them, at their option, such financial related services appropriate to their operations as it determines, with Farm Credit Bank approval, are feasible, under regulations of the Farm Credit Administration;

(16)borrow money from the bank and, with the approval of such bank, borrow from and issue association notes or other obligations to any commercial bank or other financial institution;

(17)buy and sell obligations of or insured by the United States or any agency thereof or of any banks of the Farm Credit System;

(18)invest association funds in such obligations as may be authorized in regulations of the Farm Credit Administration and approved by the bank and deposit securities and current funds of the association with any member bank of the Federal Reserve System, with the Farm Credit Bank, or with any bank insured by the Federal Deposit Insurance Corporation, and pay fees therefor and receive interest thereon as may be agreed;

(19)perform such other function delegated to the association by the Farm Credit Bank of the district;

(20)exercise by its board of directors or authorized officers or agents all such incidental powers as may be necessary or expedient in the conduct of its business;

(21)contribute to the capital of the bank; and

(22)operate as an originator and become certified as a certified facility under subchapter VIII.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 2093, Pub. L. 92–181, title II, § 2.12, Dec. 10, 1971, 85 Stat. 598; Pub. L. 96–592, title II, § 208, Dec. 24, 1980, 94 Stat. 3442; Pub. L. 99–205, title II, § 205(e)(11), Dec. 23, 1985, 99 Stat. 1704; Pub. L. 100–233, title VII, § 705(d), Jan. 6, 1988, 101 Stat. 1707; Pub. L. 100–399, title VI, § 604, Aug. 17, 1988, 102 Stat. 1006, related to general corporate powers, prior to the general amendment of this subchapter by Pub. L. 100–233, § 401.

Amendments

1988—Par. (7). Pub. L. 100–399, § 401(u)(1), substituted “provide by its board of directors for” for “elect by its board of directors” and “serve as” for “be elected or designated”. Par. (8). Pub. L. 100–399, § 401(u)(2), amended par. (8) generally. Prior to amendment, par. (8) read as follows: “prescribe by its board of directors, association bylaws, not inconsistent with law, providing for the classes of association stock and the manner in which such stock shall be issued, transferred, and retired; the officers and employees of the association elected or provided for, the property of the association that is acquired, held, and transferred, the general business of the association conducted, and the privileges granted to the association by law exercised and enjoyed;”. Par. (12). Pub. L. 100–399, § 401(u)(3), substituted “agreed to by” for “agreed to or delegated to”. Par. (22). Pub. L. 100–399, § 401(u)(4)–(6), added par. (22).

Statutory Notes and Related Subsidiaries

Effective Date

of 1988 AmendmentAmendment by Pub. L. 100–399 effective immediately after amendment made by section 401 of Pub. L. 100–233, which was effective 6 months after Jan. 6, 1988, see section 1001(b) of Pub. L. 100–399, set out as a note under section 2002 of this title.

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.

§2093 General corporate powers

Summary

Title 12, §2093

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata