§2279aa–5 — Title 12 Banks and Banking | U.S. Code

Summary

Within 120 days after the permanent board first meets with a quorum, the Corporation must make rules for certifying agricultural mortgage marketing facilities (not including the Corporation). To qualify, a facility must be a Farm Credit System institution or a U.S. or state-chartered corporation, association, or trust; meet capital rules set by the Board; have as a purpose selling or reselling securities backed by pools of qualified loans guaranteed by the Corporation; show acceptable management for underwriting, servicing, and marketing; adopt underwriting, appraisal, and servicing procedures that meet Board standards; let Corporation staff inspect books and records needed to examine securities and the loan pools the Corporation guaranteed; and use minimum loan administration and borrower disclosure practices that follow uniform Corporation standards. The rules must treat Farm Credit System and non-Farm applicants the same. If an application meets the rules, the Corporation must certify the facility within 60 days. A certificate can last up to 5 years. The Corporation may revoke certification after notice and a chance for a hearing if standards are no longer met; revocation does not affect guarantees already issued. Farm Credit System institutions may form affiliate facilities and, after the affiliate becomes and stays certified within a reasonable time, may sell qualified loans exclusively to or through that certified facility.

Title 12, §2279aa–5

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(a)(1)Within 120 days after the date on which the permanent board first meets with a quorum present, the Corporation shall issue standards for the certification of agricultural mortgage marketing facilities (other than the Corporation), including eligibility standards in accordance with paragraph (2).

(2)To be eligible to be certified under the standards referred to in paragraph (1), an agricultural mortgage marketing facility (other than the Corporation) shall—

(A)be an institution of the Farm Credit System or a corporation, association, or trust organized under the laws of the United States or of any State;

(B)meet or exceed capital standards established by the Board;

(C)have as one of the purposes of the facility, the sale or resale of securities representing interests in, or obligations backed by, pools of qualified loans that have been provided guarantees by the Corporation;

(D)demonstrate managerial ability with respect to agricultural mortgage loan underwriting, servicing, and marketing that is acceptable to the Corporation;

(E)adopt appropriate agricultural mortgage loan underwriting, appraisal, and servicing standards and procedures that meet or exceed the standards established by the Board;

(F)for purposes of enabling the Corporation to examine the facility, agree to allow officers or employees of the Corporation to have access to all books, accounts, financial records, reports, files, and all other papers, things, or property, of any type whatsoever, belonging to or used by the Corporation that are necessary to facilitate an examination of the operations of the facility in connection with securities, and the pools of qualified loans that back securities, for which the Corporation has provided guarantees; and

(G)adopt appropriate minimum standards and procedures relating to loan administration and disclosure to borrowers concerning the terms and rights applicable to loans for which guarantee is provided, in conformity with uniform standards established by the Corporation.

(3)The standards established under this subsection shall not discriminate between or against Farm Credit System and non-Farm Credit System applicants.

(b)Within 60 days after receiving an application for certification under this section, the Corporation shall certify the facility if the facility meets the standards established by the Corporation under subsection (a)(1).

(c)Any certification by the Corporation of an agricultural mortgage marketing facility shall be effective for a period determined by the Corporation of not to exceed 5 years.

(d)(1)After notice and an opportunity for a hearing, the Corporation may revoke the certification of an agricultural mortgage marketing facility if the Corporation determines that the facility no longer meets the standards referred to in subsection (a).

(2)Revocation of a certification shall not affect any pool guarantee that has been issued by the Corporation.

(e)(1)Notwithstanding any other provision of this chapter, any Farm Credit System institution, acting for such institution alone or in conjunction with one or more other such institutions, may establish and operate, as an affiliate, an agricultural mortgage marketing facility if, within a reasonable time after such establishment, such facility obtains and thereafter retains certification under subsection (b) as a certified facility.

(2)Any number of Farm Credit System institutions (other than the Corporation) may enter into an agreement with any certified facility (including an affiliate established under paragraph (1)) to sell the qualified loans of such institutions exclusively to or through the facility.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1996—Subsec. (a)(1). Pub. L. 104–105, § 106(1)(A), inserted “(other than the Corporation)” after “facilities”. Subsec. (a)(2). Pub. L. 104–105, § 106(1)(B), inserted “(other than the Corporation)” after “facility” in introductory provisions. Subsec. (e)(1). Pub. L. 104–105, § 106(2), struck out “(other than the Corporation)” after “System institution”.

§2279aa–5 Certification of agricultural mortgage marketing facilities

Summary

Title 12, §2279aa–5

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata