§ 2016. — Interest rates and other charges.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC2016]
TITLE 12--BANKS AND BANKING
CHAPTER 23--FARM CREDIT SYSTEM
SUBCHAPTER I--FARM CREDIT BANKS
Sec. 2016. Interest rates and other charges
(a) In general
Loans and discounts made by a Farm Credit Bank shall bear such rate
or rates of interest or discount, and be on such terms and conditions,
as may be determined by the board of directors of the bank from time to
time.
(b) Setting rates and charges
In setting rates and charges, it shall be the objective to provide
the types of credit needed by eligible borrowers at the lowest
reasonable costs on a sound business basis taking into consideration the
cost of money to the bank, necessary reserve and expenses of the bank
and associations, and providing services to members. The loan documents
or discounting and financing agreements, may provide for the interest
rate or rates to vary from time to time during the repayment period of
the loan or agreement.
(Pub. L. 92-181, title I, Sec. 1.8, as added Pub. L. 100-233, title IV,
Sec. 401, Jan. 6, 1988, 101 Stat. 1626; amended Pub. L. 100-399, title
IV, Sec. 401(g), Aug. 17, 1988, 102 Stat. 996.)
Prior Provisions
A prior section 2016, Pub. L. 92-181, title I, Sec. 1.8, Dec. 10,
1971, 85 Stat. 586; Pub. L. 96-592, title I, Sec. 105, Dec. 24, 1980, 94
Stat. 3438, related to eligibility, prior to the general amendment of
this subchapter by Pub. L. 100-233, Sec. 401.
Amendments
1988--Subsec. (a). Pub. L. 100-399 substituted ``such rate or rates
of interest or discount, and be'' for ``interest at a rate or rates,
and''.
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.
