§2219b Application of Uninsured Accounts

Summary

If a Farm Credit System institution is placed in liquidation, any money a borrower has in certain uninsured accounts must be used right away to pay down that borrower’s outstanding loans. This covers accounts allowed by the rules that were in effect immediately before January 6, 1988, including accounts called "advanced payment accounts" or "future prepayment accounts." The Farm Credit Administration must write rules that define what an "uninsured voluntary or involuntary account" is and any other rules needed to make this work.