§2277a–8 — Title 12 Banks and Banking | U.S. Code

Summary

The Board of Directors must run the Corporation fairly and without discrimination. The Board decides how the Corporation can take on debts and pay bills. The Corporation may use the U.S. mail like other federal agencies. With permission, it can use information, services, and facilities from other federal agencies. When possible, the Corporation must use Farm Credit Administration staff and resources to avoid repeating work and to save money. The Board may examine insured System banks, production credit associations, associations that make direct loans under section 2279b, and System institutions in receivership. It can use Farm Credit Administration examiners and their reports. If those reports are not enough, the Board can ask the Farm Credit Administration to do more work or, if the Administration cannot, hire its own examiners who must write full reports. The Board also names claim agents to check claims for insured obligations. During exams, the Corporation and its agents can require testimony under oath. Examiners must cooperate with Farm Credit Administration examiners to limit duplication and cost.

Title 12, §2277a–8

Banks and Banking — Source: USLM XML via OLRC

(a)(1)The Board of Directors shall administer the affairs of the Corporation fairly and impartially and without discrimination.

(2)The Board of Directors shall determine and prescribe the manner in which the obligations of the Corporation may be incurred and the expenses of the Corporation may be allowed and paid.

(3)The Corporation may use the United States mails in the same manner and under the same conditions as the executive departments of the Federal Government.

(4)The Corporation, with the consent of any board, commission, independent establishment, or executive department of the Federal Government, including any field service thereof, may avail itself of the use of information, services, and facilities thereof in carrying out this part.

(5)To the extent practicable, the Corporation shall use the personnel and resources of the Farm Credit Administration to minimize duplication of effort and to reduce costs.

(b)(1)(A)If the Board of Directors considers it necessary to examine an insured System bank, a production credit association, an association making direct loans under the authority provided under section 2279b of this title, or any System institution in receivership, the Board may, using Farm Credit Administration examiners, conduct the examination using reports and other information on the System institution prepared or held by the Farm Credit Administration. Notwithstanding any other provision of this chapter, on cancellation of the charter of a System institution, the Corporation shall have authority to examine the system 11 So in original. Probably should be capitalized. institution in receivership. An examination shall be performed at such intervals as the Corporation shall determine.

(B)If the Board determines that such reports or information are not adequate to enable the Corporation to carry out the duties of the Corporation under this subsection, the Board shall request the Farm Credit Administration to examine or to obtain other information from or about the System institution and provide to the Corporation the resulting examination report or such other information.

(2)If the Farm Credit Administration informs the Corporation that the Farm Credit Administration is unable to comply with a request made under paragraph (1)(B) with respect to a System institution, the Board may appoint examiners to examine the institution.

(3)Each examiner appointed under paragraph (2) shall make such examination of the affairs of the System institution as the Board may direct, and shall make a full and detailed report of the examination to the Corporation.

(4)The Board of Directors of the Corporation shall appoint claim agents who may investigate and examine all claims for insured obligations.

(c)In connection with examinations under this section, the Corporation or its designated representatives may administer oaths and affirmations, and may examine, take, and preserve testimony under oath, as to any matter with respect to the affairs of any such institution.

(d)The examiners appointed by the Board of Directors shall cooperate to the maximum extent possible with examiners of the Farm Credit Administration to minimize duplication of effort and minimize costs.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1996—Subsec. (b)(1)(A). Pub. L. 104–105 inserted at end “Notwithstanding any other provision of this chapter, on cancellation of the charter of a System institution, the Corporation shall have authority to examine the system institution in receivership. An examination shall be performed at such intervals as the Corporation shall determine.” 1992—Pub. L. 102–552, § 513(a)(1), substituted “System institutions” for “insured System banks” in section catchline. Subsec. (a)(5). Pub. L. 102–552, § 203, added par. (5). Subsec. (b). Pub. L. 102–552, § 513(a)(2), added subsec. (b) and struck out former subsec. (b) which read as follows: “(b) Examination of Insured System Banks.— “(1) Appointment of examiners.—The Board of Directors may appoint examiners who may, on behalf of the Corporation, examine any insured System bank, any production credit association, any other association making direct loans under authority provided under section 2279b of this title, and any System institution in receivership, if in the judgment of the Board of Directors an examination of the institution is necessary. “(2) Powers and report.—Each examiner may make a thorough examination of all affairs of the institution, and shall make a full and detailed report of the condition of the institution to the Corporation. “(3) Appointment of claim agents.—The Board of Directors, in like manner, shall appoint claim agents who may investigate and examine all claims for insured obligations.” 1989—Subsec. (b)(1). Pub. L. 101–220 inserted “any other association making direct loans under authority provided under section 2279b of this title,” after “any production credit association,”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1989 AmendmentAmendment by Pub. L. 101–220 effective for insurance premiums due to the Farm Credit System Insurance Corporation under this chapter on or after Jan. 1, 1990, based on the loan volume of each bank for each calendar year beginning with calendar year 1989, and effective for the calculation of the initial premium payment required under section 2277a–5(c) of this title, see section 6(c) of Pub. L. 101–220, set out as a note under section 2020 of this title.

§2277a–8 Conduct of corporate affairs; examination of System institutions