§2277a–9 — Title 12 Banks and Banking | U.S. Code

Summary

Creates a Farm Credit Insurance Fund to make sure principal and interest on insured obligations get paid on time. The Corporation will hold the Fund’s assets and must put all premium payments it receives under this part into the Fund. Starting January 1, 1993, the Corporation must use the Fund to insure timely payments on insured obligations; to retire eligible borrower stock at par value under section 2162; and may use the Fund to carry out section 2277a–10 and to pay the Corporation’s operating costs. All required payments and refunds under this part must come from the Fund.

Title 12, §2277a–9

Banks and Banking — Source: USLM XML via OLRC

(a)There is hereby established a Farm Credit Insurance Fund (hereinafter referred to in this section as the “Insurance Fund”) for insuring the timely payment of principal and interest on insured obligations. The assets in the Fund shall be held by the Corporation for the uses and purposes of the Corporation.

(b)The Corporation shall deposit in the Insurance Fund all premium payments received by the Corporation under this part.

(c)(1)Beginning January 1, 1993, the Corporation shall expend amounts in the Insurance Fund to the extent necessary to insure the timely payment of interest and principal on insured obligations.

(2)Beginning January 1, 1993, the Corporation shall use amounts in the Insurance Fund to ensure the retirement of eligible borrower stock at par value under section 2162 of this title.

(3)The Corporation may expend amounts in the Insurance Fund to carry out section 2277a–10 of this title and to cover the operating costs of the Corporation.

(4)The Corporation shall make all payments and refunds required to be made by the Corporation under this part from amounts in the Insurance Fund.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2018—Subsec. (b). Pub. L. 115–334, § 5411(38)(A), struck out par. (2) designation and heading before “The Corporation” and struck out par. (1) which provided for transfer of amounts in the revolving fund into the Farm Credit Insurance Fund, with exception for transactions before Jan. 6, 1988. Subsec. (c)(2). Pub. L. 115–334, § 5411(38)(B), substituted “Insurance Fund to ensure” for “Insurance Fund to— “(A) satisfy System institution defaults through the purchase of preferred stock or other payments as provided for in section 2278b–6(d)(3) of this title; and “(B) ensure”. 1990—Subsec. (c)(1), (2). Pub. L. 101–624 substituted “

January 1, 1993” for “5 years after the date of the enactment of this part” in par. (1) and for “5 years after the date of enactment of this part” in par. (2). 1988—Subsec. (b)(1). Pub. L. 100–399, § 302(j), struck out “(in effect immediately before

January 6, 1988)” after “section 2151 of this title”. Subsec. (b)(2). Pub. L. 100–399, § 302(k), substituted “The” for “Beginning 5 years after

January 6, 1988, the”. Subsec. (c)(2)(B). Pub. L. 100–399, § 302(l), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “ensure the retirement of borrower stock at par value and participation certificates or other similar equities at face value as provided for under section 2162(c)(2) of this title.”

Statutory Notes and Related Subsidiaries

Effective Date

of 1988 AmendmentAmendment by Pub. L. 100–399 effective as if enacted immediately after enactment of Pub. L. 100–233, which was approved Jan. 6, 1988, see section 1001(a) of Pub. L. 100–399, set out as a note under section 2002 of this title.

§2277a–9 Insurance Fund