§2279aa–2 — Title 12 Banks and Banking | U.S. Code

Summary

The board runs the Corporation and must have 15 members. Five are chosen by common-stock holders that are insurance companies, banks, or other financial firms. Five are chosen by common-stock holders that are Farm Credit System institutions. Five are picked by the President with Senate approval. The President’s five must be people from the general public, must not be current or former officers or directors of financial firms, can include no more than three from the same political party, and at least two must have farming or ranching experience. Presidential appointees serve at the President’s pleasure. The five elected members serve one-year terms until the next annual stockholders’ meeting and stay until successors qualify. The board fills most vacancies from the same category, and presidential vacancies are filled the same way as the original appointment. Eight members make a quorum. Full‑time U.S. government employees on the board get no extra pay. The President names one of his appointees as chair. The board meets when the chair or a majority calls a meeting. The board may hire officers and staff and set their pay and benefits.

Title 12, §2279aa–2

Banks and Banking — Source: USLM XML via OLRC

(a)(1)The Corporation shall be under the management of the board of directors.

(2)The Board shall consist of 15 members, of which—

(A)5 members shall be elected by holders of common stock that are insurance companies, banks, or other financial institutions or entities;

(B)5 members shall be elected by holders of common stock that are Farm Credit System institutions; and

(i)which members shall not be, or have been, officers or directors of any financial institutions or entities;

(ii)which members shall be representatives of the general public;

(iii)of which members not more than 3 shall be members of the same political party; and

(iv)of which members at least 2 shall be experienced in farming or ranching.

(3)(A)Subject to paragraph (5), a vacancy among the members elected to the Board in the manner described in subparagraph (A) or (B) of paragraph (2) shall be filled by the Board from among persons eligible for election to the position for which the vacancy exists.

(B)A vacancy among the members appointed to the Board under paragraph (2)(C) shall be filled in the manner in which the original appointment was made.

(4)If—

(A)any member of the Board who was appointed or elected to the Board from among persons who are representatives of banks, other financial institutions or entities, insurance companies, or Farm Credit System institutions ceases to be such a representative; or

(B)any member who was appointed from persons who are not or have not been directors or officers of any financial institution or entity becomes a director or an officer of any financial institution or entity;

(5)(A)The members appointed by the President shall serve at the pleasure of the President.

(B)The members elected under subparagraphs (A) and (B) of subsection (b)(2) shall each be elected annually for a term ending on the date of the next annual meeting of the common stockholders of the Corporation and shall serve until their successors are elected and qualified. Any seat on the Board that becomes vacant after the annual election of the directors shall be filled by the members of the Board from the same category of directors, but only for the unexpired portion of the term.

(C)Any member appointed to fill a vacancy occurring before the expiration of the term for which the predecessor of the member was appointed shall be appointed only for the remainder of such term.

(D)A member may serve after the expiration of the term of the member until the successor of the member has taken office.

(6)8 members of the Board shall constitute a quorum.

(7)Members of the Board who are fulltime officers or employees of the United States shall receive no additional pay by reason of service on the Board.

(8)The President shall designate 1 of the members of the Board who are appointed by the President as the chairperson of the Board.

(9)The Board shall meet at the call of the chairperson or a majority of its members.

(b)The Board may appoint, employ, fix the pay of, and provide other allowances and benefits for such officers and employees of the Corporation as the Board determines to be appropriate.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2018—Subsec. (a). Pub. L. 115–334, § 5411(43)(A)–(C)(i), redesignated subsec. (b) as (a), substituted “In general” for “Permanent board” in heading and “Board” for “permanent board” wherever appearing in text, and struck out former subsec. (a) which established an interim board of directors until the first meeting of a permanent board of directors. Subsec. (a)(1). Pub. L. 115–334, § 5411(43)(B), added par. (1) and struck out former par. (1) which required the Corporation to establish a permanent board of directors for financial institutions once certain thresholds were met. Subsec. (a)(3). Pub. L. 115–334, § 5411(43)(C)(ii)–(iv), redesignated par. (4) as (3), substituted “paragraph (5)” for “paragraph (6)” in subpar. (A), and struck out former par. (3) which set a date by which the presidential appointees to the permanent board were to be appointed. Subsec. (a)(4) to (10). Pub. L. 115–334, § 5411(43)(C)(iii), redesignated pars. (5) to (10) as (4) to (9), respectively. Former par. (4) redesignated (3). Subsecs. (b), (c). Pub. L. 115–334, § 5411(43)(D), redesignated subsec. (c) as (b). Former subsec. (b) redesignated (a). 1988—Subsecs. (a)(1), (b)(3)(B). Pub. L. 100–399 substituted “date of the enactment” for “

Effective Date

”, both of which for purposes of codification were translated as “January 6, 1988,”.

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.

§2279aa–2 Board of directors

Summary

Title 12, §2279aa–2

Notes & Related Subsidiaries

Editorial Notes

Amendments

Effective Date

Statutory Notes and Related Subsidiaries

Effective Date

Citations & Metadata