§2279aa–9 — Title 12 Banks and Banking | U.S. Code

Summary

Loans that are put into a pool backing securities or obligations guaranteed by the Corporation do not get the protections in sections 2202, 2202a, 2202b, 2202d, and 2219a. The Corporation must set loan servicing rules that follow similar rules used by other federally sponsored secondary market facilities. When applying, Farm Credit System lenders must give a written notice of the loan terms. The notice must show pooled and non‑pooled terms separately, say the loan may be pooled and that the listed sections would not apply if it is pooled, and tell the applicant they can refuse pooling. An applicant has 3 days from the commitment to refuse pooling and keep the rights under those sections.

Title 12, §2279aa–9

Banks and Banking — Source: USLM XML via OLRC

(a)Notwithstanding any other provision of law, section 2202, 2202a, 2202b, 2202d, and 2219a of this title shall not apply to any loan included in a pool of qualified loans backing securities or obligations for which the Corporation provides guarantee. The loan servicing standards established by the Corporation shall be patterned after similar standards adopted by other federally sponsored secondary market facilities.

(b)At the time of application for a loan (as defined in section 2202a(a)(5) of this title), originators that are Farm Credit System institutions shall give written notice to each applicant of the terms and conditions of the loan, setting forth separately terms and conditions for pooled loans and loans that are not pooled. This notice shall include a statement, if applicable, that the loan may be pooled and that, if pooled, section 2202, 2202a, 2202b, 2202d, and 2219a of this title shall not apply. This notice also shall inform the applicant that he or she has the right not to have the loan pooled. Within 3 days from the time of commitment, an applicant has the right to refuse to allow the loan to be pooled, thereby retaining rights under section 2202, 2202a, 2202b, 2202d, and 2219a of this title, if applicable.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2018—Pub. L. 115–334 struck out “2202c,” after “2202b,” wherever appearing. 1996—Subsec. (b). Pub. L. 104–105 inserted “(as defined in section 2202a(a)(5) of this title)” after “application for a loan”. 1988—Subsecs. (a), (b). Pub. L. 100–399 substituted “2202d, and 2219a” for “and 2219b” wherever appearing.

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–9 Exemption from restructuring and borrowers rights provisions for pooled loans