§2279c Equalization of loan-making powers of certain district associations

Summary

Allows certain farm credit associations to add the other type of loan authority inside their same chartered area if, on January 1, 2007, they owned the other kind of association that was already allowed to make those loans. Specifically, an association that owned a Federal land bank association authorized on January 1, 2007 to make long-term loans may also make short- and intermediate-term loans under subchapter II. Likewise, an association with subchapter I long-term authority that owned a production credit association authorized on that date may make long-term loans under subchapter I. The Farm Credit Bank that had a written financing agreement with the association on January 1, 2007 may finance, help fund, or buy loans made under this new authority. An association can only use the new authority after its board approves it and a majority of voting stockholders (or the parent association’s voting stockholders, if it is a subsidiary) approve at a proper stockholders’ meeting following the process in section 2279e. This rule applies only to associations whose chartered territory was inside the area served by the Federal intermediate credit bank immediately before that bank merged with a Farm Credit Bank under section 410(e)(1) of the Agricultural Credit Act of 1987 (12 U.S.C. 2011 note; Public Law 100–233).