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

Summary

An association that, on January 1, 2007, owned a Federal land bank association that could make long‑term loans in its chartered area may also make short‑ and intermediate‑term loans and act like a production credit association in that same area. Likewise, an association that already had long‑term lending authority and owned, on January 1, 2007, a production credit association that could make short‑ and intermediate‑term loans may also make long‑term loans and act like a Federal land bank or Federal land credit association in that area. The change only takes effect after the association’s board approves it and a majority of voting stockholders (or the parent association’s voting stockholders) approve at a proper meeting under section 2279e. A Farm Credit Bank that had a written financing agreement with the association as of January 1, 2007 may finance, assist, or buy those new loans despite section 2252(a). This rule applies only to associations whose chartered territory was in the area served by the Federal intermediate credit bank right before its merger under section 410(e)(1) of the Agricultural Credit Act of 1987 (12 U.S.C. 2011 note; Public Law 100–233).