§2211 — Title 12 Banks and Banking | U.S. Code

Summary

A Farm Credit System bank, or two or more banks together, can set up a corporation to do services for them that the banks are allowed to do under this law. The new corporation may not make loans or sell insurance to Farm Credit System borrowers, and it cannot have more powers than the banks that create it. The banks must ask the Farm Credit Administration for a federal charter. They must send a statement saying why the corporation is needed and draft articles that describe its goals, powers, and the area it will serve. The Administration can refuse the charter for good reason. If approved, the corporation becomes federally chartered and a federal instrumentality on the date the charter is issued.

Title 12, §2211

Banks and Banking — Source: USLM XML via OLRC

Any bank of the Farm Credit System, or two or more of such banks acting together, may organize a corporation or corporations for the purpose of performing functions and services for or on behalf of the organizing bank or banks that the bank or banks may perform pursuant to this chapter: Provided, That a corporation so organized shall have no authority either to extend credit or provide insurance services for borrowers from Farm Credit System institutions, nor shall it have any greater authority with respect to functions and services than the organizing bank or banks possess under this chapter. The organizing bank or banks shall apply for a Federal charter for the corporation by forwarding to the Farm Credit Administration a statement of the need for the corporation and proposed articles specifying in general terms the objectives for which the corporation is formed, the powers to be exercised by it in carrying out the functions and services, and the territory it is to serve. The Farm Credit Administration for good cause may deny the charter applied for. Upon the approval of articles by the Farm Credit Administration and the issuance of a charter, the corporation shall become as of such date a federally chartered body corporate and an instrumentality of the United States.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1985—Pub. L. 99–205 struck out “the Governor of” before “the Farm Credit Administration” in second sentence and substituted “Farm Credit Administration” for “Governor” in third and fourth sentences.

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.

§2211 Establishment