12 U.S.C. § 2021: Loans through associations…

Summary

Farm Credit Banks must make loans through a Federal land bank association that serves the area where the borrower’s real estate is located, unless the law provides a different rule. If no active association serves that area, the bank may make the loan itself or use another bank, trust company, savings institution, or similar financial firm it chooses. When a loan is not made through a Federal land bank association, the borrower must buy stock in the bank as the bank’s bylaws require.

Title 12, §2021

Banks and Banking, Source: USLM XML via OLRC

(a)In general

The Farm Credit Banks shall, except as otherwise herein provided, make loans of the type authorized under section 2015(a) of this title through a Federal land bank association chartered to serve the territory in which the real estate of the borrower is located.

(b)No active association

If there is no active association chartered to serve territory where the real estate is located, the bank may make the loan directly or through such bank or trust company or savings or other financial institution as such bank may designate.

(c)Purchase of stock required

When the loan is not made through a Federal land bank association, the applicant shall purchase stock in the bank in accordance with the capitalization requirements provided for in the bylaws of the bank.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 1.13 of Pub. L. 92–181 was classified to section 2031 of this title prior to the general amendment of this subchapter by Pub. L. 100–233, § 401.

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1622, provided that this section is effective 6 months after Jan. 6, 1988.

§2021 Loans Through Associations or Agents