CHAPTER 23-FARM CREDIT SYSTEM

        

(a)

Composition.

(b)

Farm credit districts.

SUBCHAPTER I-FARM CREDIT BANKS

        

(a)

Establishment.

(b)

Charters.

(c)

Title.

(d)

Branches.

        

(a)

Real estate loans and related assistance.

(b)

Intermediate credit.

        

(a)

In general.

(b)

Setting rates and charges.

        

(a)

Real estate loans.

(b)

Intermediate credit.

        

(a)

Agricultural or aquatic purposes.

(b)

Rural housing financing.

(c)

Farm-related services.

        

(a)

In general.

(b)

Authority to pass along cost of insurance premiums.

        

(a)

In general.

(b)

No active association.

(c)

Purchase of stock required.

        

SUBCHAPTER II-FARM CREDIT ASSOCIATIONS

Part A-Production Credit Associations

        

(a)

Charter.

(b)

Organization.

        

(a)

In general.

(b)

Application of earnings.

(c)

Patronage.

        

(a)

Short- and intermediate-term loans.

(b)

Rural housing.

(c)

Interest rates and charges.

(d)

Special district rule.

        

Part B-Federal Land Bank Associations

        

(a)

Charter.

(b)

Organizations.

(c)

FCA authority on organization.

        

SUBCHAPTER III-BANKS FOR COOPERATIVES

Part A-Banks for Cooperatives

        

(a)

Amount.

(b)

Value.

(c)

Eligible holders of voting stock.

(d)

Entitlement to vote.

(e)

Nonvoting investment stock.

(f)

Participation certificates.

        

(a)

Authorities.

(b)

Additional authorities.

(c)

Applicable policies.

(d)

Regulatory limitations.

(e)

Speculative futures transactions.

(f)

Installation, expansion, or improvement of water and waste disposal facilities.

        

(a)

Interest rates and charges.

(b)

Security.

(c)

Lien.

(d)

Cancellation; application on indebtedness.

        

(a)

Application of savings.

(b)

Patronage refunds.

(c)

Savings of Central Bank for Cooperatives.

(d)

Loss carryover.

(e)

Charge of unrecognized costs or expenses to reserve, surplus, or patronage allocations.

(f)

Payment of patronage refunds in cash.

        

Part B-United and National Banks for Cooperatives

        

(a)

Charter.

(b)

Powers.

(c)

Operation.

        

(a)

Initial board of directors.

(b)

Permanent board of directors.

(c)

Modification of board of directors provisions.

        

SUBCHAPTER IV-PROVISIONS APPLICABLE TO TWO OR MORE CLASSES OF INSTITUTIONS OF THE SYSTEM

Part A-Funding

        

(a)

Minimum levels of capital.

(b)

Failure to maintain minimum levels; directives; plans for achieving minimum levels; proposals affecting compliance.

(c)

Enhancement of capital adequacy of banks.

        

(a)

Definitions.

(b)

Adoption of bylaws.

(c)

Requirements of bylaws.

(d)

Reduction of capital.

(e)

Compliance.

(f)

Loans designated for sale or sold into secondary market.

(g)

Construction.

(h)

Controlling authority.

        

(a)

Joint and several liability of banks.

(b)

Resolutions as to liability; execution of obligations.

(c)

United States liability.

(d)

Insurance Fund called on before invoking joint and several liability.

        

(a)

Establishment.

(b)

Duties.

(c)

Officers and committees.

(d)

Board of directors.

(e)

Transitional authority.

(f)

Succession.

        

(a)

Retirement of stock.

(b)

Certain powers not affected.

(c)

Inability to retire stock at par value.

(d)

Definitions.

Part B-Dissolution

        

(a)

Voluntary liquidation; consent of Farm Credit Administration; rules and regulations; minimization of adverse effect; voluntary merger; mandatory merger on failure to comply or meet obligations.

(b)

Appointment of conservator or receiver; grounds; action for removal; stay of actions or proceedings.

(c)

Involuntary liquidation; rules and regulations; minimization of adverse effect.

        

(a)

Provision of stockholder lists.

(b)

Alternative communications.

Part C-Rights of Borrowers; Loan Restructuring

        

(a)

In general.

(b)

Differential interest rates.

        

(a)

Loan applications.

(b)

Distressed loans.

        

(a)

Credit review committees.

(b)

Review of decisions.

(c)

Personal appearance.

(d)

Independent appraisal.

(e)

Notification of applicant.

        

(a)

Definitions.

(b)

Notice.

(c)

Meetings.

(d)

Consideration of applications.

(e)

Restructuring.

(f)

Least cost alternative.

(g)

Restructuring policy.

(h)

Reports.

(i)

Compliance.

(j)

Permitted foreclosures.

(k)

Application of section.

(l)

Assistance in restructuring.

        

(a)

Farm Credit Bank.

(b)

Production credit association.

(c)

Retention of stock.

        

(a)

Requirements for restructuring by System institutions.

(b)

Special asset groups.

(c)

National Special Asset Council.

(d)

Report.

(e)

Restructuring factors.

        

(a)

Foreclosure prohibited.

(b)

Prohibition against required principal reduction.

(c)

Nonenforcement.

(d)

Placing loans in nonaccrual status.

        

Part D-Activities of Institutions of the System

        

(a)

Definitions.

(b)

Loan participation authority.

(c)

Prior approval required.

        

(a)

In general.

(b)

Waiver.

Part E-Service Organizations

        

Part D1-Farm Credit System Capital Corporation

        

Part F-Sale of Insurance

        

(a)

Regulatory authorization.

(b)

Contents of regulations.

(c)

Continuation of existing coverage.

Part G-Miscellaneous

        

(a)

General rule.

(b)

Application of right of first refusal to sale of property.

(c)

Application of right of first refusal to leasing of property.

(d)

Public offerings.

(e)

Term or condition.

(f)

Financing.

(g)

Mailing of notice.

(h)

State laws.

(i)

Applicability.

        

(a)

In general.

(b)

Regulations.

        

(a)

In general.

(b)

No prohibition on disclosure.

SUBCHAPTER V-FARM CREDIT ADMINISTRATION ORGANIZATION

Part A-District Organization

        

Part B-Farm Credit Administration Organization

        

(a)

Appointment.

(b)

Terms of office.

(c)

Organization.

(d)

Compensation.

(e)

Qualifications of Farm Credit Administration Board members.

        

(a)

Chairman of Farm Credit Administration Board; power and authority.

(b)

Governing standards.

(c)

Enforcement of rules, regulations, and orders of Board; civil proceedings; representation by attorneys.

        

(a)

Policies of Board.

(b)

Appointments.

(c)

Personnel.

(d)

Funding.

        

(a)

Determinations required.

(b)

Deposits into fund.

        

(a)

Enumerated powers.

(b)

Exclusions.

(c)

Proposed and final regulations; procedures applicable.

(d)

Legislative veto of regulations; procedures applicable.

        

(a)

Scope and frequency of examinations; power, authority, and liability of examiners.

(b)

Annual report of condition.

(c)

Report of examination of noncomplying institution; publication; notice of intention.

(d)

Duties of Farm Credit Administration.

        

(a)

In general.

(b)

Computerized system.

(c)

Submission of proposal.

        

Part C-Enforcement Powers of Farm Credit Administration

        

(a)

Written notice of intention to remove; violation of law, rule, regulation, or final cease and desist order; unsafe or unsound practice; breach of fiduciary duty.

(b)

Written notice of intention to remove or suspend director, officer or other person; personal dishonesty; willful or continuing disregard; unfitness to continue in office or to participate in affairs of institution.

(c)

Suspension from office; prohibition from further participation in conduct of affairs of institution; service of notice.

(d)

Statement of grounds for removal or prohibition; notice and hearing; order of suspension, removal or prohibition; service of order.

(e)

Stay of suspension or prohibition.

        

(a)

Venue; closed hearings; decisions and findings of fact; orders; modification or other action by Farm Credit Administration; judicial review.

(b)

Judicial review; commencement of proceedings; filing of petition and record; exclusive jurisdiction; finality of judgment and decree.

(c)

Proceedings operating as stays of orders.

        

(a)

Forfeiture and payment; compromise, modification, or remitting by Farm Credit Administration; assessment and collection by written notice.

(b)

Factors determining amount.

(c)

Notice and hearing; final orders.

(d)

Judicial review.

(e)

Action by Attorney General to recover amount assessed.

(f)

Rules and regulations.

(g)

Payment into Treasury.

(h)

Directives as final orders.

        

Part D-Miscellaneous

        

(a)

In general.

(b)

Authority to issue regulations.

(c)

Effect of section.

        

Part E-Farm Credit System Insurance Corporation

        

(a)

Establishment.

(b)

Chairman.

        

(a)

Amount in Fund not exceeding secure base amount.

(b)

Amount in Fund exceeding secure base amount.

(c)

Secure base amount.

(d)

Determination of principal outstanding.

(e)

Allocation to System institutions of excess reserves.

        

(a)

Filing certified statement.

(b)

Contents and form of statement.

(c)

Initial premium payment.

(d)

Subsequent premium payments.

(e)

Regulations.

        

(a)

Overpayments.

(b)

Underpayments.

(c)

Failure to file statement or pay premium.

(d)

Effect on other remedies.

        

(a)

Conduct of corporate affairs.

(b)

Examination of System institutions.

(c)

Oath, affirmations, and testimony.

(d)

Cooperation with FCA examiners.

        

(a)

Establishment.

(b)

Amounts in Fund.

(c)

Uses of Fund.

        

(a)

Authority to provide assistance.

(b)

Authority to pledge or sell assets.

(c)

Subrogation.

(d)

Right to assets.

(e)

Insured System bank.

(f)

Effective date.

        

(a)

"Institution" defined.

(b)

Consultation regarding participation of undercapitalized banks in issuance of insured obligations.

(c)

Consultation regarding applications for mergers and restructurings.

        

(a)

Definitions.

(b)

Prohibition.

(c)

Factors to be taken into account.

(d)

Certain payments prohibited.

(e)

Rule of construction.

        

(a)

In general.

(b)

Contents.

        

(a)

Corporate name.

(b)

Payments or distributions while in default.

(c)

Failure to file statement or pay premium.

(d)

Employment of persons convicted of criminal offenses.

SUBCHAPTER VI-ASSISTANCE TO FARM CREDIT SYSTEM

Part A-Assistance Board

        

(a)

Charters.

(b)

Use of Capital Corporation staff.

        

(a)

Membership.

(b)

Chairman.

(c)

Terms of office, succession, and vacancies.

(d)

Compensation of Board members.

(e)

Rules and records.

(f)

Quorum required.

(g)

Chief executive officer.

        

(a)

In general.

(b)

Power to remove; jurisdiction.

        

(a)

Book value less than par value of stock and equities.

(b)

Book value less than 75 percent of par value of stock and equities.

(c)

Mandatory determination of eligibility.

(d)

Implementation.

(e)

"Other similar equities" defined.

        

(a)

In general.

(b)

"High-cost debt" defined.

(c)

Minimum equity value.

(d)

Limitation.

        

(a)

In general.

(b)

Suspension of assistance.

(c)

Undated letters of resignation.

(d)

Reports.

        

(a)

Expenses.

(b)

Interim funding.

(c)

Assistance operations.

(d)

Access to FCA documents.

        

(a)

Purposes.

(b)

Prohibition.

        

(a)

Assets and liabilities.

(b)

Contracts.

(c)

Adjustment of assessments.

(d)

Surplus funds.

(e)

Preservation agreements.

        

(a)

Issuance.

(b)

Regulation by Farm Credit Administration.

(c)

Audits.

        

(a)

Exercise of powers.

(b)

Limitation on assistance.

(c)

Issuance of stock.

(d)

Repayment.

Part B-Financial Assistance Corporation

        

(a)

Board of Directors.

(b)

Rules and records.

(c)

Quorum required.

(d)

Chief executive officer.

        

(a)

In general.

(b)

Power to remove, and jurisdiction.

        

(a)

Farm Credit Assistance Fund.

(b)

Financial Assistance Corporation Trust Fund.

        

(a)

Issuance.

(b)

Conditions.

(c)

Interest payments.

(d)

Refinancing and payment of principal; defaults.

(e)

Administration.

        

(a)

Issuance.

(b)

Purchase.

        

(a)

In general.

(b)

Authorization of appropriations.

        

(a)

Amount of stock purchase.

(b)

Computations.

(c)

Notice.

(d)

Institution requirements after notice.

(e)

Jurisdiction over actions.

        

(a)

Assets.

(b)

Obligations.

        

(a)

Financial Assistance Corporation.

(b)

Accounts.

SUBCHAPTER VII-RESTRUCTURING OF SYSTEM INSTITUTIONS

Part A-Merger of Banks Within a District

        

(a)

In general.

(b)

Regulations.

        

Part B-Mergers, Transfers of Assets, and Powers of Associations Within a District

subpart 1-transfers by federal land banks to federal land bank associations

        

(a)

Voluntary transfers.

(b)

Direct loans and financial assistance.

(c)

Regulations.

(d)

Mandatory transfer.

subpart 2-merger of like and unlike associations

        

(a)

In general.

(b)

Powers, obligations, and consolidation.

(c)

Stock issuance.

subpart 3-reconsideration

        

(a)

Period.

(b)

Reconsideration.

(c)

Special reconsideration.

subpart 4-termination and dissolution of institutions

        

(a)

Conditions.

(b)

Effect.

Part C-Approval of Disclosure Information and Issuance of Charters by the Farm Credit Administration Board

        

(a)

Disclosure of information.

(b)

Notice of reasons for disapproval.

(c)

Federal charter.

Part D-Mergers of Like Entities

        

(a)

In general.

(b)

Powers and capitalization.

(c)

Board of directors.

        

(a)

In general.

(b)

Procedures.

Part E-Taxation of Merger Transactions

        

SUBCHAPTER VIII-AGRICULTURAL MORTGAGE SECONDARY MARKET

        

Part A-Establishment and Activities of Federal Agricultural Mortgage Corporation

        

(a)

Establishment.

(b)

Duties.

        

(a)

Interim board.

(b)

Permanent board.

(c)

Officers and staff.

        

(a)

Guarantees.

(b)

Duties of Board.

(c)

Powers of Corporation.

(d)

Federal Reserve banks as depositaries and fiscal agents.

(e)

Access to book-entry system.

        

(a)

Voting common stock.

(b)

Required capital contributions.

(c)

Dividends.

(d)

Nonvoting common stock.

(e)

Preferred stock.

        

(a)

Eligibility standards.

(b)

Certification by Corporation.

(c)

Maximum time period for certification.

(d)

Revocation.

(e)

Affiliation of FCS institutions with facility.

        

(a)

Guarantee authorized for certified facilities.

(b)

Other responsibilities of and limitations on certified facilities.

(c)

Additional authority of Board.

(d)

Aggregate principal amounts of qualified loans.

(e)

Purchase of guaranteed securities.

        

(a)

Standards.

(b)

Minimum criteria.

(c)

Loan amount limitation.

(d)

Congressional review.

(e)

Nondiscrimination requirement.

        

(a)

Restructuring.

(b)

Borrowers rights.

        

(a)

Guarantee.

(b)

Guarantee fees.

(c)

Corporation reserve against guarantees losses required.

(d)

Fees to cover administrative costs authorized.

        

(a)

Regulation.

(b)

Examinations and audits.

(c)

Annual report of condition.

(d)

FCA assessments to cover costs.

(e)

"Affiliate" defined.

(f)

Employees and personnel.

        

(a)

Federal laws.

(b)

State securities laws.

(c)

Authorized investments.

(d)

State usury laws superseded.

        

(a)

Sale of obligations to Treasury.

(b)

Expeditious transaction required.

(c)

Limitation on amount of outstanding obligations.

(d)

Terms of obligation.

(e)

Coordination with title 31.

(f)

Authorization of appropriations.

        

Part B-Regulation of Financial Safety and Soundness of Federal Agricultural Mortgage Corporation

        

(a)

Risk-based capital test.

(b)

Considerations.

(c)

Risk-based capital level.

(d)

Specified contents.

(e)

Availability of model.

        

(a)

In general.

(b)

Transition period.

        

(a)

In general.

(b)

Discretionary classification.

(c)

Quarterly determination.

(d)

Notice.

(e)

Implementation.

        

(a)

Capital restoration plan.

(b)

Restriction on dividends.

(c)

Reclassification from level II to level III.

(d)

Effective date.

        

(a)

Mandatory supervisory actions.

(b)

Discretionary supervisory actions.

(c)

Effective date.

        

(a)

Mandatory recapitalization.

(b)

Raising core capital.

(c)

Limitation on growth of total assets.

(d)

Enforcement.

Part C-Receivership, Conservatorship, and Liquidation of Federal Agricultural Mortgage Corporation

        

(a)

Voluntary liquidation.

(b)

Involuntary liquidation.

(c)

Appointment of conservator or receiver.

(d)

Judicial review of appointment.

(e)

General powers of conservator or receiver.

(f)

Borrowings for working capital.

(g)

Agreements against interests of conservator or receiver.

(h)

Report to Congress.

(i)

Termination of authorities.

Chapter Referred to in Other Sections

This chapter is referred to in sections 1786, 1818 of this title; title 15 sections 1607, 1691c, 6505; title 18 section 1030; title 42 section 9601.