Title 12, Banks and BankingRelease 119-102

§2205 Interest Rates

Title 12 › CHAPTER 23 — FARM CREDIT SYSTEM › SUBCHAPTER IV — PROVISIONS APPLICABLE TO TWO OR MORE CLASSES OF INSTITUTIONS OF THE SYSTEM › Part D — Activities of Institutions of the System › § 2205

Last updated Aug 21, 2026|Official source

Summary

Loans made by Farm Credit System institutions and certain agricultural credit corporations do not have to follow any state limits on interest rates. State interest-rate rules are overridden for the purposes of this chapter. Farm Credit System institutions — lenders that are part of the Farm Credit System. Agricultural credit corporations — companies formed with cooperative associations to finance ordinary crop operations and that are eligible to discount loans with Farm Credit Banks.

Full Legal Text

Title 12, §2205

Banks and Banking, Source: USLM XML via OLRC

Interest rates on loans from institutions of the Farm Credit System shall not be subject to any interest rate limitation imposed by any State constitution or statute or other laws. Such limitation is preempted for purposes of this chapter. Interest rates on loans made by agricultural credit corporations organized in conjunction with cooperative associations for the purpose of financing the ordinary crop operations of the members of such associations or other producers and eligible to discount with the Farm Credit Banks shall be exempt from any interest rate limitation imposed by any State constitution or statute or other laws which are hereby preempted for purposes of this chapter.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2018—Pub. L. 115–334 struck out “Federal intermediate credit banks and” before “Farm Credit Banks”. 1988—Pub. L. 100–399 substituted “and Farm Credit Banks” for “pursuant to section 2074 of this title”. 1986—Pub. L. 99–509 substituted first two sentences for former first sentence which read as follows: “Interest rates on loans from institutions of the Farm Credit System shall be determined with the approval of, as provided in section 2252(a)(5) of this title, the Farm Credit Administration as provided in this chapter, notwithstanding any interest rate limitation imposed by any State constitution or statute or other laws which are hereby preempted for purposes of this chapter.” 1985—Pub. L. 99–205 inserted “, as provided in section 2252(a)(5) of this title,” after “with the approval of” in first sentence.

Statutory Notes and Related Subsidiaries

Effective Date

of 1988 AmendmentAmendment by Pub. L. 100–399 effective immediately after amendment made by section 401 of Pub. L. 100–233, which was effective 6 months after Jan. 6, 1988, see section 1001(b) of Pub. L. 100–399, set out as a note under section 2002 of this title.

Effective Date

of 1985 AmendmentAmendment by Pub. L. 99–205 effective thirty days after Dec. 23, 1985, see section 401 of Pub. L. 99–205, set out as a note under section 2001 of this title.

Reference

Citations & Metadata

Citation

12 U.S.C. § 2205

Title 12, Banks and Banking

Last Updated

Aug 21, 2026

Release point: 119-102