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Title 12 — Banks and BankingRelease 119-73

§2277a–7 General corporate powers

Title 12 › Chapter CHAPTER 23— - FARM CREDIT SYSTEM › Subchapter SUBCHAPTER V— - FARM CREDIT ADMINISTRATION ORGANIZATION › Part Part E— - Farm Credit System Insurance Corporation › § 2277a–7

Last updated Apr 6, 2026|Official source

Summary

On January 6, 1988, the Corporation becomes a legal corporation and gets a set of powers to run its work. It can adopt a seal, keep existing until Congress ends it, make contracts, start and defend lawsuits, and act as a conservator or receiver. All civil cases involving the Corporation are treated as federal cases and go to U.S. district courts, and the Corporation can move cases from state courts to federal court without posting bond. No court can seize its property before a final judgment. The board must name an agent for legal papers in any state where an insured System bank is located. The board may hire and fire officers and employees, set pay and bonds, make bylaws and rules to run the business, require reports and exams of System institutions, and use any other powers given by law, including rules to carry out this part and section 2020(b), except where another agency has exclusive authority.

Full Legal Text

Title 12, §2277a–7

Banks and Banking — Source: USLM XML via OLRC

On January 6, 1988, the Corporation shall become a body corporate and as such shall have the following powers:
(1)The Corporation may adopt and use a corporate seal.
(2)The Corporation may have succession until dissolved by an Act of Congress.
(3)The Corporation may make contracts.
(4)(A)The Corporation may sue and be sued, complain and defend, in any court of law or equity, State or Federal.
(B)All suits of a civil nature at common law or in equity to which the Corporation shall be a party shall be deemed to arise under the laws of the United States, and the United States district courts shall have original jurisdiction thereof, without regard to the amount in controversy, and the Corporation, in any capacity, without bond or security, may remove any such action, suit, or proceeding from a State court to the United States district court for the district or division embracing the place where the same is pending by following any procedure for removal then in effect.
(C)No attachment or execution may be issued against the Corporation or its property before final judgment in any suit, action, or proceeding in any State, county, municipal, or United States court.
(D)The Board of Directors shall designate an agent on whom service of process may be made in any State or jurisdiction in which any insured System bank is located.
(5)(A)The Corporation may appoint by its Board of Directors such officers and employees as are not otherwise provided for in this part, define their duties, fix their compensation, and require bonds of them and fix the penalty thereof, and dismiss at pleasure such officers or employees.
(B)Nothing in this chapter or any other Act shall be construed to prevent the appointment and compensation, as an officer or employee of the Corporation, of any officer or employee of the United States in any board, commission, independent establishment, or executive department thereof.
(6)The Corporation may prescribe, by its Board of Directors, bylaws not inconsistent with law, regulating the manner in which its general business may be conducted, and the privileges granted to it by law may be exercised and enjoyed.
(7)The Corporation may exercise by its Board of Directors, or duly authorized officers or agents, all powers specifically granted by the provisions of this part, and such incidental powers as shall be necessary to carry out the powers so granted.
(8)The Corporation may, when necessary, make examinations of, and require information and reports from, System institutions, as provided in this part.
(9)The Corporation may act as a conservator or receiver.
(10)The Corporation may prescribe by its Board of Directors such rules and regulations as it considers necessary to carry out this part and section 2020(b) of this title (except to the extent that authority to issue such rules and regulations has been expressly and exclusively granted to any other regulatory agency).

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Codification Pub. L. 110–234 and Pub. L. 110–246 made identical

Amendments

to this section. The

Amendments

by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.

Amendments

2018—Par. (2). Pub. L. 115–334 struck out at end “The Corporation shall succeed to the rights of the Farm Credit System Assistance Board under agreements between the Farm Credit System Assistance Board and System institutions certifying the institutions as eligible to issue preferred stock pursuant to subchapter VI on the termination of the Assistance Board on the date provided in section 2278a–12 of this title.” 2008—Par. (10). Pub. L. 110–246, § 5401(b), inserted “and section 2020(b) of this title” after “this part”. 1996—Par. (9). Pub. L. 104–105 added par. (9) and struck out heading and text of former par. (9). Text read as follows: “The Corporation may act as receiver.” 1992—Par. (2). Pub. L. 102–552 inserted at end “The Corporation shall succeed to the rights of the Farm Credit System Assistance Board under agreements between the Farm Credit System Assistance Board and System institutions certifying the institutions as eligible to issue preferred stock pursuant to subchapter VI on the termination of the Assistance Board on the date provided in section 2278a–12 of this title.” 1991—Par. (4)(B). Pub. L. 102–237 inserted “in any capacity,” after “and the Corporation,”. 1988—Par. (5)(A). Pub. L. 100–399 struck out “to” before “define” and “dismiss”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2008 AmendmentAmendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an

Effective Date

note under section 8701 of Title 7, Agriculture.

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.

Reference

Citations & Metadata

Citation

12 U.S.C. § 2277a–7

Title 12 — Banks and Banking

Last Updated

Apr 6, 2026

Release point: 119-73