Title 12 — Banks and BankingRelease 119-73
§2206 Participation loans
Title 12 › Chapter CHAPTER 23— - FARM CREDIT SYSTEM › Subchapter SUBCHAPTER IV— - PROVISIONS APPLICABLE TO TWO OR MORE CLASSES OF INSTITUTIONS OF THE SYSTEM › Part Part D— - Activities of Institutions of the System › § 2206
Summary
When Farm Credit System lenders from different subchapters share a loan, they agree on the loan terms and must follow rules set by the Farm Credit Administration. Rules about who may borrow, membership, loan length, amount, security, and required stock or participation purchases follow the law of the lender that made the loan.
Full Legal Text
Title 12, §2206
Banks and Banking — Source: USLM XML via OLRC
Notwithstanding any other provisions of this chapter, the terms of any loan participated in by two or more Farm Credit System institutions operating under different subchapters of this chapter, including provisions for capitalization of the portion of the loan participated in by each institution, shall be as may be agreed upon among such institutions and authorized under regulations issued by the Farm Credit Administration, except that for purposes of determining borrower eligibility, membership, term, amount, loan security, and purchase of stock or participation certificates by the borrower, the provisions of law applicable to the loan shall be the provisions in the subchapter under which the institution that originates the loan operates.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1985—Pub. L. 98–205 inserted “under
Regulations
issued” after “authorized”.
Statutory Notes and Related Subsidiaries
Effective Date
of 1985 AmendmentAmendment by Pub. L. 99–205 effective thirty days after Dec. 23, 1985, see section 401 of Pub. L. 99–205, set out as a note under section 2001 of this title.
Reference
Citations & Metadata
Citation
12 U.S.C. § 2206
Title 12 — Banks and Banking
Last Updated
Apr 6, 2026
Release point: 119-73