§ 2015. — Lending authority.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC2015]
TITLE 12--BANKS AND BANKING
CHAPTER 23--FARM CREDIT SYSTEM
SUBCHAPTER I--FARM CREDIT BANKS
Sec. 2015. Lending authority
(a) Real estate loans and related assistance
(1) Real estate loans
The Farm Credit Banks may make or participate with other lenders
in long-term real estate mortgage loans in rural areas, as defined
by the Farm Credit Administration, or to producers or harvesters of
aquatic products, and make continuing commitments to make such loans
under specified circumstances, for a term of not less than 5 nor
more than 40 years.
(2) Financial assistance
The Farm Credit Banks may provide and extend financial
assistance to, and discount for, or purchase from, a 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, as authorized under section 2279b(a) of this
title.
(b) Intermediate credit
(1) In general
The Farm Credit Banks are authorized to make loans and extend
other similar financial assistance to and to discount for or
purchase from--
(A) any production credit association, or
(B) any national bank, State bank, trust company,
agricultural credit corporation, incorporated livestock loan
company, savings institution, credit union, or any association
of agricultural producers engaged in the making of loans to
farmers and ranchers, and any corporation engaged in the making
of loans to producers or harvesters of aquatic products,
any note, draft, or other obligation with the institution's
endorsement or guarantee, the proceeds of which note, draft, or
other obligation have been advanced to persons and for purposes
eligible for financing by production credit associations as
authorized by this chapter.
(2) Participation with other entities
The Farm Credit Banks may participate with one or more
production credit associations or other Farm Credit Banks in the
making of loans to eligible borrowers and may participate with one
or more other Farm Credit System institutions in loans made under
this subchapter or other subchapters of this chapter on the basis
prescribed in section 2206 of this title.
(3) Limitations on extension of financial services
(A) General rule
No paper shall be purchased from or discounted for, and no
loans shall be made or other similar financial assistance
extended by a Farm Credit Bank to any entity identified in
paragraph (1)(B) of this subsection if the amount of such paper
added to the aggregate liabilities of such entity, whether
direct or contingent (other than bona fide deposit liabilities),
exceeds ten times the paid-in and unimpaired capital and surplus
of such entity or the amount of such liabilities permitted under
the laws of the jurisdiction creating such institution,
whichever is the lesser.
(B) Limitation on national bank
It shall be unlawful for any national bank which is indebted
to any Farm Credit Bank, on paper discounted or purchased under
paragraph (1), to incur any additional indebtedness, if by
virtue of such additional indebtedness its aggregate liabilities
direct or contingent, will exceed the limitation described in
subparagraph (A).
(4) FCA regulations
(A) In general
All of the loans, financial assistance, discounts and
purchases authorized by this subsection shall be subject to
regulations of the Farm Credit Administration and shall be
secured by collateral, if any, as may be required in such
regulations.
(B) Requirement of regulations
The regulations shall assure that such loans, financial
assistance, discounts, and purchases are available on a
reasonable basis to any financing institution authorized to
receive such services under paragraph (1)(B) of this subsection,
and that--
(i) is significantly involved in lending for
agricultural or aquatic purposes;
(ii) demonstrates a continuing need for supplementary
sources of funds to meet the credit requirements of its
agricultural or aquatic borrowers;
(iii) has limited access to national or regional capital
markets; and
(iv) does not use such services to expand its financing
activities to persons and for purposes other than those
authorized under subchapter II of this chapter.
(C) Fees
The regulations may authorize a Farm Credit Bank to charge
reasonable fees for any commitment to extend service under this
section to such a financing institution.
(D) Subsidiaries and affiliates
For purposes of this subsection, a financing institution
together with the subsidiaries and affiliates of such may be
considered as one, but such determination to consider such
institution together with the subsidiaries and affiliates of
such as one shall be made in the first instance by the bank and
in the event of a denial by the bank of its services to a
financial institution, then by the Farm Credit Administration on
a case-by-case basis with due regard to the total relationship
of the financing institution, its subsidiaries, and affiliates.
(5) Effective date
Nothing in this section shall require termination of discount
relationships in existence on December 24, 1980.
(Pub. L. 92-181, title I, Sec. 1.7, as added Pub. L. 100-233, title IV,
Sec. 401, Jan. 6, 1988, 101 Stat. 1625; amended Pub. L. 100-399, title
IV, Sec. 401(e), (f), Aug. 17, 1988, 102 Stat. 995, 996.)
Codification
In subsec. (b)(5), ``December 24, 1980'' substituted for ``the
effective date of the Farm Credit Act Amendments of 1980''.
Prior Provisions
A prior section 2015, Pub. L. 92-181, title I, Sec. 1.7, Dec. 10,
1971, 85 Stat. 585; Pub. L. 96-592, title I, Sec. 104, Dec. 24, 1980, 94
Stat. 3438; Pub. L. 99-509, title I, Sec. 1033(a), Oct. 21, 1986, 100
Stat. 1877, related to interest rates and other charges, prior to the
general amendment of this subchapter by Pub. L. 100-233, Sec. 401.
Amendments
1988--Subsec. (a). Pub. L. 100-399, Sec. 401(e), inserted in heading
``and related assistance'' and amended text generally. Prior to
amendment, text read as follows: ``The Farm Credit Banks are authorized
to make or participate with other lenders in long-term real estate
mortgage loans in rural areas, as defined by the Farm Credit
Administration, or to producers or harvesters of aquatic products, and
make continuing commitments to make such loans under specified
circumstances, for a term of not less than 5 nor more than 40 years.''
Subsec. (b)(2). Pub. L. 100-399, Sec. 401(f)(1), struck out
provision that banks may own and lease or lease with an option to
purchase to persons eligible for assistance under this subchapter,
equipment needed in the operations of such persons.
Subsec. (b)(3). Pub. L. 100-399, Sec. 401(f)(2), substituted in
heading ``services'' for ``assistance'' and in subpar. (B) ``described
in subparagraph (A)'' for ``herein contained''.
Subsec. (b)(4)(A). Pub. L. 100-399, Sec. 401(f)(3), substituted
``subsection'' for ``section''.
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 sections 2020, 2021, 2091, 2202a,
2252, 2277a-4 of this title.
