12 U.S.C. § 2279aa–9: Exemption from…

Summary

Loans that are put into a pool to back securities guaranteed by the Corporation are not covered by sections 2202, 2202a, 2202b, 2202d, and 2219a. The Corporation must set loan-servicing rules that follow the same kind of standards used by other federal secondary-market programs. When someone applies, Farm Credit System lenders must give a written notice that explains the loan terms, says if the loan may be pooled, and says that pooling would remove the protections in those sections. The applicant can refuse pooling within 3 days after commitment to keep the rights in those sections. "Loan" is defined in section 2202a(a)(5).

Title 12, §2279aa–9

Banks and Banking, Source: USLM XML via OLRC

(a)Restructuring

Notwithstanding any other provision of law, section 2202, 2202a, 2202b, 2202d, and 2219a of this title shall not apply to any loan included in a pool of qualified loans backing securities or obligations for which the Corporation provides guarantee. The loan servicing standards established by the Corporation shall be patterned after similar standards adopted by other federally sponsored secondary market facilities.

(b)Borrowers rights

At the time of application for a loan (as defined in section 2202a(a)(5) of this title), originators that are Farm Credit System institutions shall give written notice to each applicant of the terms and conditions of the loan, setting forth separately terms and conditions for pooled loans and loans that are not pooled. This notice shall include a statement, if applicable, that the loan may be pooled and that, if pooled, section 2202, 2202a, 2202b, 2202d, and 2219a of this title shall not apply. This notice also shall inform the applicant that he or she has the right not to have the loan pooled. Within 3 days from the time of commitment, an applicant has the right to refuse to allow the loan to be pooled, thereby retaining rights under section 2202, 2202a, 2202b, 2202d, and 2219a of this title, if applicable.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2018—Pub. L. 115–334 struck out “2202c,” after “2202b,” wherever appearing. 1996—Subsec. (b). Pub. L. 104–105 inserted “(as defined in section 2202a(a)(5) of this title)” after “application for a loan”. 1988—Subsecs. (a), (b). Pub. L. 100–399 substituted “2202d, and 2219a” for “and 2219b” wherever appearing.

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–9 Exemption From Restructuring and Borrowers Rights Provisions for Pooled Loans