§2219b Application of uninsured accounts

Summary

If a Farm Credit System institution goes into liquidation, any money a borrower kept in an uninsured account there must be used right away to pay down that borrower’s loans. That rule covers accounts allowed under Farm Credit Administration rules in effect immediately before January 6, 1988, including accounts used for advance or future prepayments. The Farm Credit Administration must write rules that define an uninsured voluntary or involuntary account — an uninsured account set up by choice or by other means — and any other rules needed to make this work.