12 USC 2252 - Powers and duties

Editorial Notes

Codification

Puspan. L. 110–234 and Puspan. L. 110–246 made identical amendments to this section. The amendments by Puspan. L. 110–234 were repealed by section 4(a) of Puspan. L. 110–246.

Prior Provisions

A prior section 5.17 of Puspan. L. 92–181 was renumbered section 5.16 and is classified to section 2251 of this title.

Amendments

2018—Subsec. (a)(2). Puspan. L. 115–334 struck out “In issuing charters and certificates of territory for district-wide mergers of associations where stockholders of one or more associations did not approve the merger, the charter of the new or merged association shall not include the territory of the disagreeing association or associations; charters issued during calendar year 1985 for district-wide new or merged associations which included the territory of a disagreeing association shall be revoked and reissued to exclude such territory, unless subsequently agreed to by the board of directors of such association or associations. The Farm Credit Administration Board shall ensure that disapproving associations (A) shall not be charged any assessment under this chapter at a rate higher than that charged other like associations in the district, and (B) shall be provided with financial services and assistance on the same basis as other like associations in the district (including, but not limited to, access to credit and rates of interest on loans and discounts) by a district Farm Credit bank to the association and its member-borrowers.” after “institutions involved.”

2008—Subsec. (a)(2). Puspan. L. 110–246, § 5407(c)(1), substituted “(2)” for “(2)(A)” and struck out pars. (B) and (C) which prohibited issuance or amendment of the charter of any institution of the Farm Credit System that would authorize the institution to exercise lending authority in a territory in which the charter of another such institution authorized the other institution to exercise like authority, unless specified approvals were obtained, and provided that such prohibition would apply only in geographic areas where, due to the failure of a merger, the Federal intermediate credit bank or its successor was chartered to provide short- and intermediate-term credit, and a neighboring Farm Credit Bank that was not the successor to the Federal intermediate credit bank was chartered to provide long-term credit, in the same geographic territory.

Subsec. (a)(15). Puspan. L. 110–246, § 5407(span), added par. (15).

1996—Subsec. (a)(2)(A). Puspan. L. 104–105, § 210, struck out “or management agreements” after “consolidations of boards of directors” in first sentence.

Subsec. (a)(8). Puspan. L. 104–105, § 211, inserted “the requirements of the Farm Credit Administration governing the dissemination to stockholders of quarterly reports of System institutions may not be more burdensome or costly than the requirements applicable to national banks, and” after “except that”.

1992—Subsec. (a)(2). Puspan. L. 102–552, § 401(c), designated existing provisions as subpar. (A) and added subpars. (B) and (C).

Subsec. (a)(13), (14). Puspan. L. 102–552, § 511, added pars. (13) and (14).

1991—Subsec. (a)(8)(B)(ii). Puspan. L. 102–237 struck out second period at end.

1990—Subsec. (a)(13). Puspan. L. 101–624 struck out par. (13) which read as follows: “Except for associations, approve the salary scale for employees of the institutions of the System, and approve the compensation of the chief executive officer of such institutions: Provided, That no salary scale or rate of compensation shall be approved under this provision unless determined by the Board to be fair and reasonable. The Board may not delegate its responsibilities under this paragraph.”

1988—Subsec. (a)(1). Puspan. L. 100–399, § 901(m)(1), substituted “district banks” for “district boards”.

Subsec. (a)(2). Puspan. L. 100–399, § 901(m)(2), substituted “district bank boards” for “boards of the districts”.

Puspan. L. 100–399, § 409(e), substituted “approve the consolidation or division of the territories of institutions when agreed to” for “the consolidation or division of the territories that they serve when agreed to”.

Puspan. L. 100–233, § 802(v)(1)(A), substituted “approve amendments to” for “amend or modify”.

Puspan. L. 100–233, § 415(d), substituted “section 2279a of this title” for “section 2181 of this title” and “approve mergers and any related activities as provided for in subchapter VII; and” for “; approve mergers of banks operating under the same subchapter of this chapter, merger of Federal land bank associations, merger of production credit associations, and”.

Puspan. L. 100–233, § 414, substituted “. The Farm Credit Administration Board shall ensure that disapproving associations (A) shall not be charged any assessment under this chapter at a rate higher than that charged other like associations in the district, and (B) shall be provided with financial services and assistance on the same basis as other like associations in the district” for “; and the Farm Credit Administration shall ensure that the board of directors of district banks does not discriminate against the disapproving associations in exercising its supervisory authorities. Such associations shall not be (i) charged any assessment under this chapter at a rate higher than that charged other like associations in the district or (ii) discriminated against in the provision of any financial service and assistance”.

Puspan. L. 100–233, § 431(e)(1), substituted “The Farm Credit Administration Board, after consultation with the respective boards of directors of the affected banks, may require two or more banks operating under the same or different titles to merge if the Board determines that one of such banks has failed to meet its outstanding obligations” for “The Chairman of the Farm Credit Administration Board, after consultation with the respective district board or boards and the board of directors of the Capital Corporation may require two or more banks of the Farm Credit System (other than Central Banks for Cooperatives) operating under the same subchapter to merge if the Chairman determines that one of such banks has failed to meet outstanding obligations of such bank.”

Subsec. (a)(3). Puspan. L. 100–399, § 901(m)(3), substituted “Farm Credit Banks under section 2207(span) of this title” for “Federal land banks and Federal intermediate credit banks under section 2207(span) of this title”.

Subsec. (a)(5). Puspan. L. 100–233, § 802(v)(1)(B), struck out “that meet standards and criteria established by the Farm Credit Administration, including standards and criteria with respect to (A) interest rates on obligations of Farm Credit System institutions, and (B) the payment of dividends or patronage refunds by Farm Credit System institutions” after “Farm Credit institutions”.

Subsec. (a)(8). Puspan. L. 100–399, § 205, redesignated par. (9) as (8).

Puspan. L. 100–233, § 207(a)(2), struck out par. (8) which read as follows: “Make investments in stock of the Capital Corporation out of the revolving fund referred to in section 2151 of this title, and require the retirement of such stock.”

Subsec. (a)(9). Puspan. L. 100–399, § 205, redesignated par. (10) as (9). Former par. (9) redesignated (8).

Puspan. L. 100–233, § 424(a), inserted provisions limiting Farm Credit Administration from requiring System institutions to disclose in reports to stockholders certain information concerning condition or classification of loans to certain directors or members of immediate family of certain directors.

Subsec. (a)(10) to (12). Puspan. L. 100–399, § 205, redesignated pars. (11) to (13) as (10) to (12), respectively. Former par. (10) redesignated (9).

Subsec. (a)(13). Puspan. L. 100–399, § 205, redesignated par. (14) as (13). Former par. (13) redesignated (12).

Puspan. L. 100–233, § 805(z), redesignated par. (14) as (13), and struck out former par. (13) which read as follows: “Sue and be sued, complain and defend in any court of law or equity, State or Federal. All suits of a civil nature at common law or in equity to which the Farm Credit Administration shall be a party shall be deemed to arise under the laws of the United States, and the United States district courts shall have original jurisdiction thereof, without regard to the amount of the controversy; and the Farm Credit Administration may, without bond or security, remove any such action, suit, or proceeding from a State court to the United States district court for the district or division embracing the place where the same is pending by following any procedure for removal now or hereafter in effect. Service of process on the Farm Credit Administration shall be in accordance with provisions of title 28 and rules adopted under title 28 for suits in which an agency of the United States is a party. The Farm Credit Administration shall designate an agent at its principal office to accept service of process.”

Subsec. (a)(14). Puspan. L. 100–399, § 205, redesignated par. (14) as (13).

Puspan. L. 100–233, §§ 431(e)(2), 805(z), redesignated par. (15) as (14) and inserted “by the Board” and “The Board may not delegate its responsibilities under this paragraph.” Former subsec. (14) redesignated (13).

Subsec. (a)(15). Puspan. L. 100–233, § 805(z), redesignated par. (15) as (14).

Subsecs. (span), (c). Puspan. L. 100–233, § 802(v)(2), added subsec. (span) and redesignated former subsec. (span) as (c). Former subsec. (c) redesignated (d).

Subsec. (d). Puspan. L. 100–233, § 802(v)(2), redesignated subsec. (c) as (d).

Subsec. (d)(1). Puspan. L. 100–399, § 901(n)(1), made technical amendment to reference to sections 2015(span) and 2128(span) of this title involving underlying provisions of original act and requiring no change in text.

Puspan. L. 100–399, § 901(n), substituted “section 2015(span) of this title” for “section 2074 of this title”.

1986—Subsec. (a)(5)(A). Puspan. L. 99–509 struck out “and on loans made or discounted by such institutions” after “Farm Credit System institutions”.

1985—Subsec. (a). Puspan. L. 99–205 amended subsec. (a) generally, revising and reorganizing the enumerated powers of the Farm Credit Administration by substituting pars. (1) to (15) for former pars. (1) to (17).

1980—Puspan. L. 96–592 designated existing provisions as subsec. (a), in par. (3) inserted provisions relating to summary and analysis of reports, and added subsecs. (span) and (c).

Statutory Notes and Related Subsidiaries

Effective Date of 2008 Amendment

Amendment of this section and repeal of Puspan. L. 110–234 by Puspan. L. 110–246 effective May 22, 2008, the date of enactment of Puspan. L. 110–234, except as otherwise provided, see section 4 of Puspan. L. 110–246, set out as an Effective Date note under section 8701 of Title 7, Agriculture.

Puspan. L. 110–234, title V, § 5407(d), May 22, 2008, 122 Stat. 1161, and Puspan. L. 110–246, § 4(a), title V, § 5407(d), June 18, 2008, 122 Stat. 1664, 1922, provided that: “The amendments made by this section [enacting section 2279c of this title and amending this section and provisions set out as notes under section 2011 of this title] take effect on January 1, 2010.”

[Puspan. L. 110–234 and Puspan. L. 110–246 enacted identical provisions. Puspan. L. 110–234 was repealed by section 4(a) of Puspan. L. 110–246, set out as a note under section 8701 of Title 7, Agriculture.]

Effective Date of 1991 Amendment

Amendment by Puspan. L. 102–237 effective as if included in the provision of the Food, Agriculture, Conservation, and Trade Act of 1990, Puspan. L. 101–624, to which the amendment relates, see section 1101(span)(4) of Puspan. L. 102–237, set out as a note under section 1421 of Title 7, Agriculture.

Effective Date of 1988 Amendments

Amendment by sections 205 and 409(a), (e) of Puspan. L. 100–399 effective as if enacted immediately after enactment of Puspan. L. 100–233, which was approved Jan. 6, 1988, and amendment by section 901(m), (n) of Puspan. L. 100–399 effective immediately after amendment made by section 401 of Puspan. L. 100–233, which was effective 6 months after Jan. 6, 1988, see section 1001 of Puspan. L. 100–399, set out as a note under section 2002 of this title.

Amendment by section 207(a)(2) of Puspan. L. 100–233 effective 15 days after Jan. 6, 1988, see section 207(span) of Puspan. L. 100–233 set out as an Effective Date of Repeal note under section 2152 of this title.

Effective Date of 1985 Amendment

Amendment by Puspan. L. 99–205 effective thirty days after Dec. 23, 1985, see section 401 of Puspan. L. 99–205, set out as a note under section 2001 of this title.

Regulations

Puspan. L. 100–233, title IV, § 424(span), Jan. 6, 1988, 101 Stat. 1656, provided that: “Within 30 days after the date of the enactment of this Act [Jan. 6, 1988], the Farm Credit Administration shall amend its regulations as necessary to implement the amendment made by subsection (a) [amending this section].”

Termination of Reporting Requirements

For termination, effective May 15, 2000, of provisions in subsec. (a)(3) of this section relating to requirement to make annual reports to Congress, see section 3003 of Puspan. L. 104–66, as amended, set out as a note under section 1113 of Title 31, Money and Finance, and page 166 of House Document No. 103–7.

Compensation Disclosure by Farm Credit System Institutions

Puspan. L. 113–79, title V, § 5404, Fespan. 7, 2014, 128 Stat. 840, provided that:

“(a)Findings.—Congress finds that—

“(1) the reasonable disclosure to stockholders by Farm Credit System institutions regarding the compensation of Farm Credit System institution senior officers is beneficial to stockholders’ understanding of the operation of their institutions;

“(2) transparency regarding compensation practices reinforces the cooperative nature of Farm Credit System institutions;

“(3) the unique cooperative structure of the Farm Credit System should be considered when promulgating rules;

“(4) the participation of stockholders in the election of the boards of directors of Farm Credit System institutions provides stockholders the opportunity to participate in the management of their institutions;

“(5) as representatives of stockholders, the boards of directors of Farm Credit System institutions importantly establish and oversee the compensation practices of Farm Credit System institutions to ensure the safe and sound operation of those institutions; and

“(6) any regulation should strengthen and not hinder the ability of Farm Credit System boards of directors to oversee compensation practices.

“(span)Implementation.—Not later than 60 days after the date of enactment of this Act [Fespan. 7, 2014], the Farm Credit Administration shall review its rules to reflect Congressional intent that a primary responsibility of the boards of directors of Farm Credit System institutions, as elected representatives of their stockholders, is to oversee compensation practices.”

Regulatory Review

Puspan. L. 104–105, title II, § 212, Fespan. 10, 1996, 110 Stat. 174, provided that:

“(a)Findings.—Congress finds that—

“(1) the Farm Credit Administration, in the role of the Administration as an arms-length safety and soundness regulator, has made considerable progress in reducing the regulatory burden on Farm Credit System institutions;

“(2) the efforts of the Farm Credit Administration described in paragraph (1) have resulted in cost savings for Farm Credit System institutions; and

“(3) the cost savings described in paragraph (2) ultimately benefit the farmers, ranchers, agricultural cooperatives, and rural residents of the United States.

“(span)Continuation of Regulatory Review.—The Farm Credit Administration shall continue the comprehensive review of regulations governing the Farm Credit System to identify and eliminate, consistent with law, safety, and soundness, all regulations that are unnecessary, unduly burdensome or costly, or not based on law.”

Forbearance and Restructuring for Farm Loans; Farm Credit Administration

Puspan. L. 100–387, title III, § 313(span), Aug. 11, 1988, 102 Stat. 950, provided that: “It further is the sense of Congress that the Farm Credit Administration should in its oversight of Farm Credit System institutions, with respect to farmers and ranchers who suffer major losses due to drought, hail, excessive moisture, or related condition in 1988—

“(1) ensure that Farm Credit System institutions exercise forbearance in the collection of principal and interest on loans outstanding to such farmers and ranchers;

“(2) expedite the use of credit restructuring and other credit relief mechanisms authorized under the Agricultural Credit Act of 1987 [Puspan. L. 100–233, Jan. 6, 1988, 101 Stat. 1568, see Tables for classification] and related provisions of law for such farmers and ranchers; and

“(3) encourage other lenders participating with Farm Credit System institutions in mutual loan agreements to exercise forbearance before declaring loans to such farmers and ranchers in default.”