PRIA, Government Policy, Made Personal

Summary

The Board of Directors must run the Corporation fairly and without bias. The Board sets how the Corporation can take on obligations and pay its bills. The Corporation can use the U.S. mail like federal agencies and may use information, services, and facilities from federal agencies if those agencies agree. As much as practical, the Corporation must use Farm Credit Administration (FCA) staff and resources to avoid doing the same work twice and to save money. If the Board thinks a Farm Credit System institution needs an examination, it can review banks, credit associations, direct-loan associations, or institutions in receivership using FCA examiners and FCA reports. The Board decides how often to examine. If the FCA’s reports are not enough, the Board can ask the FCA for a new exam or more information, and if the FCA cannot help, the Board can appoint examiners who must report their findings. The Board also names claim agents to investigate insured-claim matters. During exams, the Corporation or its reps may take sworn testimony. Examiners must work closely with FCA examiners to avoid duplicate work and cut costs.

Title 12, §2277a–8

Banks and Banking, Source: USLM XML via OLRC

(a)Conduct of corporate affairs

(1)Fair administration

The Board of Directors shall administer the affairs of the Corporation fairly and impartially and without discrimination.

(2)Obligations and expenses

The Board of Directors shall determine and prescribe the manner in which the obligations of the Corporation may be incurred and the expenses of the Corporation may be allowed and paid.

(3)Use of mails

The Corporation may use the United States mails in the same manner and under the same conditions as the executive departments of the Federal Government.

(4)Use of information

The Corporation, with the consent of any board, commission, independent establishment, or executive department of the Federal Government, including any field service thereof, may avail itself of the use of information, services, and facilities thereof in carrying out this part.

(5)Use of Farm Credit Administration personnel

To the extent practicable, the Corporation shall use the personnel and resources of the Farm Credit Administration to minimize duplication of effort and to reduce costs.

(b)Examination of System institutions

(1)Examination authority

(A)In general

If the Board of Directors considers it necessary to examine an insured System bank, a production credit association, an association making direct loans under the authority provided under section 2279b of this title, or any System institution in receivership, the Board may, using Farm Credit Administration examiners, conduct the examination using reports and other information on the System institution prepared or held by the Farm Credit Administration. Notwithstanding any other provision of this chapter, on cancellation of the charter of a System institution, the Corporation shall have authority to examine the system institution in receivership. An examination shall be performed at such intervals as the Corporation shall determine.

(B)Request for additional examination or other information

If the Board determines that such reports or information are not adequate to enable the Corporation to carry out the duties of the Corporation under this subsection, the Board shall request the Farm Credit Administration to examine or to obtain other information from or about the System institution and provide to the Corporation the resulting examination report or such other information.

(2)Appointment of examiners

If the Farm Credit Administration informs the Corporation that the Farm Credit Administration is unable to comply with a request made under paragraph (1)(B) with respect to a System institution, the Board may appoint examiners to examine the institution.

(3)Powers and report

Each examiner appointed under paragraph (2) shall make such examination of the affairs of the System institution as the Board may direct, and shall make a full and detailed report of the examination to the Corporation.

(4)Appointment of claim agents

The Board of Directors of the Corporation shall appoint claim agents who may investigate and examine all claims for insured obligations.

(c)Oath, affirmations, and testimony

In connection with examinations under this section, the Corporation or its designated representatives may administer oaths and affirmations, and may examine, take, and preserve testimony under oath, as to any matter with respect to the affairs of any such institution.

(d)Cooperation with FCA examiners

The examiners appointed by the Board of Directors shall cooperate to the maximum extent possible with examiners of the Farm Credit Administration to minimize duplication of effort and minimize costs.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1996—Subsec. (b)(1)(A). Pub. L. 104–105 inserted at end “Notwithstanding any other provision of this chapter, on cancellation of the charter of a System institution, the Corporation shall have authority to examine the system institution in receivership. An examination shall be performed at such intervals as the Corporation shall determine.” 1992—Pub. L. 102–552, § 513(a)(1), substituted “System institutions” for “insured System banks” in section catchline. Subsec. (a)(5). Pub. L. 102–552, § 203, added par. (5). Subsec. (b). Pub. L. 102–552, § 513(a)(2), added subsec. (b) and struck out former subsec. (b) which read as follows: “(b) Examination of Insured System Banks.— “(1) Appointment of examiners.—The Board of Directors may appoint examiners who may, on behalf of the Corporation, examine any insured System bank, any production credit association, any other association making direct loans under authority provided under section 2279b of this title, and any System institution in receivership, if in the judgment of the Board of Directors an examination of the institution is necessary. “(2) Powers and report.—Each examiner may make a thorough examination of all affairs of the institution, and shall make a full and detailed report of the condition of the institution to the Corporation. “(3) Appointment of claim agents.—The Board of Directors, in like manner, shall appoint claim agents who may investigate and examine all claims for insured obligations.” 1989—Subsec. (b)(1). Pub. L. 101–220 inserted “any other association making direct loans under authority provided under section 2279b of this title,” after “any production credit association,”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1989 AmendmentAmendment by Pub. L. 101–220 effective for insurance premiums due to the Farm Credit System Insurance Corporation under this chapter on or after Jan. 1, 1990, based on the loan volume of each bank for each calendar year beginning with calendar year 1989, and effective for the calculation of the initial premium payment required under section 2277a–5(c) of this title, see section 6(c) of Pub. L. 101–220, set out as a note under section 2020 of this title.

§2277a–8 Conduct of Corporate Affairs; Examination of System Institutions