12-U.S.C.-2279B
§2279B – Transfer of Lending Authority
Pathway
Title 12 > Chapter 23 > Subchapter VII > Part B > Subpart 1 > Section 2279b
Details
- Reference: Section 2279b
- Legend: §2279B – Transfer of Lending Authority
- USCode Year: 2013
Provision Content
(a) Voluntary transfers
A Federal land bank or a merged bank having a Federal land bank as one of its constituents, may transfer to a Federal land bank association, and the association may assume, the authority of the transferring bank in the territorial area served by the association, to make and participate in long-term real estate mortgage loans under this chapter if the transfer is approved by—
(1) the Farm Credit Administration Board;
(2) the Board of Directors of both institutions; and
(3) a majority of the stockholders of the bank and of the association, in accordance with the voting provisions of sections 2279a and 2279c–1 of this title, respectively.
(b) Direct loans and financial assistance
After a transfer described in subsection (a) or (d) of this section—
(1) the Federal land bank association shall possess all of the direct long-term real estate mortgage loan authority, formerly possessed by the transferring bank, in the territory served by the association; and
(2) the bank may provide and extend financial assistance to, and discount for, or purchase from, the transferee Federal land bank association any note, draft, or other obligation with the endorsement or guarantee of the association, the proceeds of which have been advanced to persons eligible and for purposes of financing by the association under subsection (a) of this section.
(c) Regulations
The Farm Credit Administration shall issue regulations that establish the manner in which the powers and obligations of the banks that make transfers are consolidated and, to the extent necessary, reconciled in the association referred to in subsection (a) of this section.
(d) Mandatory transfer
On the merger of one or more production credit associations with one or more Federal land bank associations, the bank supervising the Federal land bank association shall transfer all of the direct lending authority of the bank in the territory served by such Federal land bank association to such merged association.
(Pub. L. 92–181, title VII, §7.6, formerly §§7.6, 7.7, as added Pub. L. 100–233, title IV, §416, Jan. 6, 1988, 101 Stat. 1647; amended Pub. L. 100–399, title IV, §408(f)–(j), Aug. 17, 1988, 102 Stat. 1001, 1002.)
Codification
Pub. L. 100–399, §408(j), transferred section 7.7 of Pub. L. 92–181, which was classified to section 2279c of this title, to subsec. (d) of this section.
Amendments
1988—Subsec. (a). Pub. L. 100–399, §408(f), substituted Voluntary transfers for Assignments as subsection heading, and in text substituted may transfer for may assign, this chapter for sections 2014 through 2017 of this title, and transfer is approved for assignment is approved in introductory provisions, and sections 2279a and 2279c–1 of this title, respectively for sections 2279a and 2279b of this title in par. (3).
Subsec. (b). Pub. L. 100–399, §408(g), substituted a transfer described in subsection (a) or (d) for an assignment described in subsection (a) in introductory provisions and the bank may provide for the Federal land bank may provide in par. (2).
Subsec. (c). Pub. L. 100–399, §408(h), struck out assignments or before transfers are consolidated and struck out second sentence, which provided that, following a transfer or assignment under subsection (a) of this section, the provisions of section 2154a of this title were to be applicable to the association.
Subsec. (d). Pub. L. 100–399, §408(i), (j), transferred section 2279c of this title to subsec. (d) of this section, substituted heading for former section heading, and amended text generally. Prior to amendment, text read as follows: On the merger of one or more production credit associations with one or more Federal land bank associations, the bank supervising the Federal land bank association shall transfer all of its direct lending authority of the bank to such association under section 2279c–1 of this title.
Effective Date of 1988 Amendment
Amendment 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.
U.S. Encyclopedia of Law Coverage
12-U.S.C.-2278B-7 in the Legal Encyclopedia: Banking Law
In this entry about 12-U.S.C.-2278B-7, find legal reference material, bibliographies and premiere content related to banking law in the American Encyclopedia of Law, presenting a comprehensive view of the United States banking law-specific issues, written by authorities in the field.
12-U.S.C.-2279A-2 in the Legal Encyclopedia: Farm Credit System
In this entry about 12-U.S.C.-2279A-2, find legal reference material, bibliographies and premiere content related to farm credit system in the American Encyclopedia of Law, presenting a comprehensive view of the United States farm credit system-specific issues, written by authorities in the field.
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