§2206 — Title 12 Banks and Banking | U.S. Code

Summary

When two or more Farm Credit System lenders from different parts of the law share a loan, they can agree on the loan's terms and must follow rules the Farm Credit Administration sets. That includes how each lender treats and funds its share of the loan. For who can borrow, membership, the loan’s length and amount, the collateral, and whether the borrower must buy stock or participation certificates, use the rules that apply to the lender that made the loan.

Title 12, §2206

Banks and Banking — Source: USLM XML via OLRC

Notwithstanding any other provisions of this chapter, the terms of any loan participated in by two or more Farm Credit System institutions operating under different subchapters of this chapter, including provisions for capitalization of the portion of the loan participated in by each institution, shall be as may be agreed upon among such institutions and authorized under regulations issued by the Farm Credit Administration, except that for purposes of determining borrower eligibility, membership, term, amount, loan security, and purchase of stock or participation certificates by the borrower, the provisions of law applicable to the loan shall be the provisions in the subchapter under which the institution that originates the loan operates.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1985—Pub. L. 98–205 inserted “under

Regulations

issued” after “authorized”.

Statutory Notes and Related Subsidiaries

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.

§2206 Participation Loans