12 U.S.C. § 2279aa–3: Powers and duties of…

Summary

Once the Board is set up, and subject to other laws and rules, the Corporation can guarantee securities that are backed by or share interests in pooled qualified loans. The Board must set the Corporation’s main policies, hire and pay executive officers, and give those officers the duties to run day-to-day operations. The Corporation is a legal company and can do many business things under the Board’s direction. It can issue stock, have a corporate seal, hire officers and staff (and require bonds against losses), make guarantees, and keep operating until Congress passes a law to end it. It can write bylaws about stock classes and how the company is run, set needed standards, make contracts and payments, sue and be sued, work with entities inside or outside the Farm Credit System, buy or sell property and securities, handle qualified loans and guaranteed securities, create affiliates under state law, and do other needed tasks. Federal Reserve banks serve as its depositaries and fiscal agents, and it has access to the Federal Reserve’s book-entry system.

Title 12, §2279aa–3

Banks and Banking, Source: USLM XML via OLRC

(a)Guarantees

After the Board has been duly constituted, subject to the other provisions of this subchapter and other commitments and requirements established pursuant to law, the Corporation may provide guarantees on terms and conditions determined by the Corporation of securities issued on the security of, or in participation in, pooled interests in qualified loans.

(b)Duties of Board

(1)In general

The Board shall—

(A)determine the general policies that shall govern the operations of the Corporation;

(B)select, appoint, and determine the compensation of qualified persons to fill such offices as may be provided for in the bylaws of the Corporation; and

(C)assign to such persons such executive functions, powers, and duties as may be prescribed by the bylaws of the Corporation or by the Board.

(2)Executive officers and functions

The persons elected or appointed under paragraph (1)(B) shall be the executive officers of the Corporation and shall discharge the executive functions, powers, and duties of the Corporation.

(c)Powers of Corporation

The Corporation shall be a body corporate and shall have the following powers:

(1)To operate under the direction of its Board.

(2)To issue stock in the manner provided in section 2279aa–4 of this title.

(3)To adopt, alter, and use a corporate seal, which shall be judicially noted.

(4)To provide for a president, 1 or more vice presidents, secretary, treasurer, and such other officers, employees, and agents, as may be necessary, define their duties and compensation levels, all without regard to title 5, and require surety bonds or make other provisions against losses occasioned by acts of such persons.

(5)To provide guarantees in the manner provided under section 2279aa–6 of this title.

(6)To have succession until dissolved by a law enacted by the Congress.

(7)To prescribe bylaws, through the Board, not inconsistent with law, that shall provide for—

(A)the classes of the stock of the Corporation; and

(B)the manner in which—

(i)the stock shall be issued, transferred, and retired;

(ii)the officers, employees, and agents of the Corporation are selected;

(iii)the property of the Corporation is acquired, held, and transferred;

(iv)the commitments and other financial assistance of the Corporation are made;

(v)the general business of the Corporation is conducted; and

(vi)the privileges granted by law to the Corporation are exercised and enjoyed;

(8)To prescribe such standards as may be necessary to carry out this subchapter.

(9)To enter into contracts and make payments with respect to the contracts.

(10)To sue and be sued in its corporate capacity and to complain and defend in any action brought by or against the Corporation in any State or Federal court of competent jurisdiction.

(11)To make and perform contracts, agreements, and commitments with persons and entities both inside and outside of the Farm Credit System.

(12)To acquire, hold, lease, mortgage or dispose of, at public or private sale, real and personal property, purchase or sell any securities or obligations, and otherwise exercise all the usual incidents of ownership of property necessary and convenient to the business of the Corporation.

(13)To purchase, hold, sell, or assign a qualified loan, to issue a guaranteed security, representing an interest in, or an obligation backed by, the qualified loan, and to perform all the functions and responsibilities of an agricultural mortgage marketing facility operating as a certified facility under this subchapter.

(14)To establish, acquire, and maintain affiliates (as such term is defined in section 2279aa–11(e) of this title) under applicable State laws to carry out any activities that otherwise would be performed directly by the Corporation under this subchapter.

(15)To exercise such other incidental powers as are necessary to carry out the powers, duties, and functions of the Corporation in accordance with this subchapter.

(d)Federal Reserve banks as depositaries and fiscal agents

The Federal Reserve banks shall act as depositories for, and as fiscal agents or custodians of, the Corporation.

(e)Access to book-entry system

The Corporation shall have access to the book-entry system of the Federal Reserve System.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1996—Subsec. (c)(13) to (15). Pub. L. 104–105, § 104, added par. (13) and redesignated former pars. (13) and (14) as (14) and (15), respectively. Subsec. (d). Pub. L. 104–105, § 105(1), which directed the amendment of subsec. (d) by substituting “shall act as depositories for, and” for “may act as depositories for, or”, was executed by making the substitution for “may act as depositaries for, or” to reflect the probable intent of Congress. Subsec. (e). Pub. L. 104–105, § 105(2), substituted “Corporation shall have access to” for “Secretary of the Treasury may authorize the Corporation to use”. 1992—Subsec. (c)(13). Pub. L. 102–552 substituted “2279aa–11(e)” for “2279aa–11(g)”. 1991—Subsec. (c)(13), (14). Pub. L. 102–237 added par. (13) and redesignated former par. (13) as (14). 1988—Subsec. (c)(4). Pub. L. 100–399 substituted “such persons” for “the persons”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1988 AmendmentAmendment by Pub. L. 100–399 effective as if enacted immediately after enactment of Pub. L. 100–233, which was approved Jan. 6, 1988, see section 1001(a) of Pub. L. 100–399, set out as a note under section 2002 of this title.

§2279aa–3 Powers and Duties of Corporation and Board