§ 2019. — Purposes for extensions of credit.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC2019]
TITLE 12--BANKS AND BANKING
CHAPTER 23--FARM CREDIT SYSTEM
SUBCHAPTER I--FARM CREDIT BANKS
Sec. 2019. Purposes for extensions of credit
(a) Agricultural or aquatic purposes
(1) In general
Loans made by a Farm Credit Bank to farmers, ranchers, and
producers or harvesters of aquatic products may be for any
agricultural or aquatic purpose and other credit needs of the
applicant, including financing for basic processing and marketing
directly related to the applicant's operations and those of other
eligible farmers, ranchers, and producers or harvesters of aquatic
products, except that the operations of the applicant shall supply
some portion of the total processing or marketing for which
financing is extended.
(2) Limitation on loans for basic processing and marketing
operations
The aggregate of the financing provided by any Farm Credit Bank
for basic processing and marketing directly related to the
operations of farmers, ranchers, and producers or harvesters of
aquatic products, if the operations of the applicant supply less
than 20 percent of the total processing or marketing for which
financing is extended, shall not exceed 15 percent of the total of
all outstanding loans of such bank.
(b) Rural housing financing
(1) In general
Loans and discounts may be made to rural residents for rural
housing financing under regulations of the Farm Credit
Administration.
(2) Limitations
Rural housing financed under this subchapter shall be for
single-family, moderate-priced dwellings and their appurtenances not
inconsistent with the general quality and standards of housing
existing in, or planned or recommended for, the rural area where it
is located, except that a Farm Credit Bank may not at any one time
have a total amount of loans outstanding for such rural housing to
persons other than farmers or ranchers in amounts exceeding 15
percent of the total of all loans outstanding in such bank.
(3) Rural areas
For rural housing purposes under this section the term ``rural
areas'' shall not be defined to include any city or village having a
population in excess of 2,500 inhabitants.
(c) Farm-related services
(1) In general
Loans to persons furnishing farm-related services to farmers and
ranchers directly related to their on-farm operating needs may be
made for the necessary capital structures and equipment and initial
working capital for such services.
(2) Facilities
The banks may own and lease, or lease with option to purchase,
to persons eligible for credit under this subchapter or subchapter
II of this chapter, equipment or facilities needed in the operations
of such persons.
(Pub. L. 92-181, title I, Sec. 1.11, as added Pub. L. 100-233, title IV,
Sec. 401, Jan. 6, 1988, 101 Stat. 1627; amended Pub. L. 100-399, title
IV, Sec. 401(j), Aug. 17, 1988, 102 Stat. 996; Pub. L. 101-624, title
XVIII, Sec. 1832(a), Nov. 28, 1990, 104 Stat. 3832; Pub. L. 102-237,
title V, Sec. 502(a), Dec. 13, 1991, 105 Stat. 1868.)
Prior Provisions
A prior section 2019, Pub. L. 92-181, title I, Sec. 1.11, Dec. 10,
1971, 85 Stat. 586; Pub. L. 96-592, title I, Sec. 108, Dec. 24, 1980, 94
Stat. 3438, related to services related to borrower's operations, prior
to the general amendment of this subchapter by Pub. L. 100-233,
Sec. 401.
Amendments
1991--Subsec. (a). Pub. L. 102-237 made technical amendments to
headings of subsec. (a) and pars. (1) and (2).
1990--Subsec. (a). Pub. L. 101-624 designated existing provisions as
par. (1), inserted heading, substituted ``some portion'' for ``at least
20 percent, or such larger percent as may be required by the board of
directors of the bank under regulations of the Farm Credit
Administration,'', and added par. (2).
1988--Subsec. (c)(2). Pub. L. 100-399 substituted ``this subchapter
or subchapter II of this chapter, equipment or facilities'' for ``this
subchapter, facilities''.
Effective Date of 1991 Amendment
Amendment by Pub. L. 102-237 effective as if included in the
provision of the Food, Agriculture, Conservation, and Trade Act of 1990,
Pub. L. 101-624, to which the amendment relates, see section 1101(b)(4)
of Pub. L. 102-237, set out as a note under section 1421 of Title 7,
Agriculture.
Effective Date of 1988 Amendment
Amendment by Pub. L. 100-399 effective immediately after amendment
made by section 401 of Pub. L. 100-233, which was effective 6 months
after Jan. 6, 1988, see section 1001(b) of Pub. L. 100-399, set out as a
note under section 2002 of this title.
Section Referred to in Other Sections
This section is referred to in section 2206a of this title.
