§2211 — Title 12 Banks and Banking | U.S. Code

Summary

Any Farm Credit System bank, alone or with others, may create a corporation to do services the bank can perform under this chapter. The corporation cannot make loans or sell insurance to borrowers of Farm Credit System institutions, and it cannot have more power than the bank or banks that set it up. To get a federal charter, the organizing bank or banks must send the Farm Credit Administration a statement of need and proposed articles showing the corporation’s goals, powers, and territory. The Administration may deny the charter for good cause. If approved and chartered, the corporation becomes federally chartered and an instrumentality of the United States on the charter date.

Title 12, §2211

Banks and Banking — Source: USLM XML via OLRC

Any bank of the Farm Credit System, or two or more of such banks acting together, may organize a corporation or corporations for the purpose of performing functions and services for or on behalf of the organizing bank or banks that the bank or banks may perform pursuant to this chapter: Provided, That a corporation so organized shall have no authority either to extend credit or provide insurance services for borrowers from Farm Credit System institutions, nor shall it have any greater authority with respect to functions and services than the organizing bank or banks possess under this chapter. The organizing bank or banks shall apply for a Federal charter for the corporation by forwarding to the Farm Credit Administration a statement of the need for the corporation and proposed articles specifying in general terms the objectives for which the corporation is formed, the powers to be exercised by it in carrying out the functions and services, and the territory it is to serve. The Farm Credit Administration for good cause may deny the charter applied for. Upon the approval of articles by the Farm Credit Administration and the issuance of a charter, the corporation shall become as of such date a federally chartered body corporate and an instrumentality of the United States.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1985—Pub. L. 99–205 struck out “the Governor of” before “the Farm Credit Administration” in second sentence and substituted “Farm Credit Administration” for “Governor” in third and fourth sentences.

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.

§2211 Establishment