§2277a–10a Oversight actions by Corporation

Summary

Defines "institution" to mean either an insured System bank or a production credit association (or similar association) that makes loans under section 2279b where a direct loan to the funding bank is 20 percent or more of that bank’s total loan volume after removing nonaccrual loans. Requires the Farm Credit Administration to consult with the Corporation before approving any insured loan or debt tied to an insured System bank that does not meet the Administration’s minimum capital standards. When a merger or restructuring is proposed, the Administration must send the application to the Corporation. If the institution involved falls short on capital, the Corporation gets 30 days to give its views and any conditions, and the Administration must consider those recommendations before deciding.