§2279c Equalization of Loan-making Powers of Certain District Associations

Summary

Lets certain farm associations add loan powers inside the same territory. If an association owned a Federal land bank that was allowed on January 1, 2007 to make long-term loans in its area, that association may also make short- and intermediate-term loans and act like a production credit association in that same area. If an association had long-term lending authority and owned a production credit association that was allowed on January 1, 2007 to make short- and intermediate-term loans in the area, that association may also make long-term loans and act like a Federal land bank or Federal land credit association. The Farm Credit Bank that had a written financing agreement with the association on January 1, 2007 may also lend for, help with, or buy loans made under these new powers. These new powers can be used only after the association’s board approves them and a majority of voting stockholders (or the parent association’s voting stockholders) approve them by voting in person or by proxy at a properly authorized stockholder meeting following the process in section 2279e. The rule applies only to associations whose charter area was inside the geographic area served by the Federal intermediate credit bank right before that bank merged with a Farm Credit Bank under section 410(e)(1) of the Agricultural Credit Act of 1987 (12 U.S.C. 2011 note; Public Law 100–233).