Title 12 — Banks and BankingRelease 119-73not60
§2259 State Legislation
Title 12 › Chapter 23— FARM CREDIT SYSTEM › Subchapter V— FARM CREDIT ADMINISTRATION ORGANIZATION › Part B— Farm Credit Administration Organization › § 2259
Summary
When the Farm Credit Administration or a court finds that a State law would give too little protection if a borrower defaults, the Administration may bar those loans or investments from backing new debt.
Full Legal Text
Title 12, §2259
Banks and Banking — Source: USLM XML via OLRC
Whenever it is determined by the Farm Credit Administration, or by judicial decision, that a State law is applicable to the obligations and securities authorized to be held by the institutions of the System under this chapter, which law would provide insufficient protection or inadequate safeguards against loss in the event of default, the Farm Credit Administration may declare such obligations or securities to be ineligible as collateral for the issuance of new notes, bonds, debentures, and other obligations under this chapter.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Prior Provisions
A prior section 5.24 of Pub. L. 92–181 was renumbered section 5.23 and is classified to section 2258 of this title.
Reference
Citations & Metadata
Citation
12 U.S.C. § 2259
Title 12 — Banks and Banking
Last Updated
Apr 3, 2026
Release point: 119-73not60