Statute: 1971 ACT AS AMENDED
Title: Title V Farm Credit Administration Organization
Part: Part E Farm Credit System Insurance Corporation
U.S. Code Citation: 12 U.S.C. 2277a-8
12 U.S.C. 2277a-8 SEC. 5.59. CONDUCT OF CORPORATE AFFAIRS; EXAMINATION OF SYSTEM INSTITUTIONS.
(a) CONDUCT OF CORPORATE AFFAIRS.
(1) FAIR ADMINISTRATION. The Board of Directors shall administer the affairs of the Corporation fairly and impartially and without discrimination.
(2) OBLIGATIONS AND EXPENSES. The Board of Directors shall determine and prescribe the manner in which the obligations of the Corporation may be incurred and the expenses of the Corporation may be allowed and paid.
(3) USE OF MAILS. The Corporation may use the United States mails in the same manner and under the same conditions as the executive departments of the Federal Government.
(4) USE OF INFORMATION. The Corporation, with the consent of any board, commission, independent establishment, or executive department of the Federal Government, including any field service thereof, may avail itself of the use of information, services, and facilities thereof in carrying out this part.
(5) USE OF FARM CREDIT ADMINISTRATION PERSONNEL. To the extent practicable, the Corporation shall use the personnel and resources of the Farm Credit Administration to minimize duplication of effort and to reduce costs.
(b) EXAMINATION OF SYSTEM INSTITUTIONS.
(1) EXAMINATION AUTHORITY.
(A) IN GENERAL. If the Board of Directors considers it necessary to examine an insured System bank, a production credit association, an association making direct loans under the authority provided under section 7.6, or any System institution in receivership, the Board may, using Farm Credit Administration examiners, conduct the examination using reports and other information on the System institution prepared or held by the Farm Credit Administration. Notwithstanding any other provision of this Act, on cancellation of the charter of a System institution, the Corporation shall have authority to examine the System institution in receivership. An examination shall be performed at such intervals as the Corporation shall determine.
(B) REQUEST FOR ADDITIONAL EXAMINATION OR OTHER INFORMATION. If the Board determines that such reports or information are not adequate to enable the Corporation to carry out the duties of the Corporation under this subsection, the Board shall request the Farm Credit Administration to examine or to obtain other information from or about the System institution and provide to the Corporation the resulting examination report or such other information.
(2) APPOINTMENT OF EXAMINERS. If the Farm Credit Administration informs the Corporation that the Farm Credit Administration is unable to comply with a request made under paragraph (1)(B) with respect to a System institution, the Board may appoint examiners to examine the institution.
(3) POWERS AND REPORT. Each examiner appointed under paragraph (2) shall make such examination of the affairs of the System institution as the Board may direct, and shall make a full and detailed report of the examination to the Corporation.
(4) APPOINTMENT OF CLAIM AGENTS. The Board of Directors of the Corporation shall appoint claim agents who may investigate and examine all claims for insured obligations.
(c) OATH, AFFIRMATIONS, AND TESTIMONY. In connection with examinations under this section, the Corporation or its designated representatives may administer oaths and affirmations, and may examine, take, and preserve testimony under oath, as to any matter with respect to the affairs of any such institution.
(d) COOPERATION WITH FCA EXAMINERS. The examiners appointed by the Board of Directors shall cooperate to the maximum extent possible with examiners of the Farm Credit Administration to minimize duplication of effort and minimize costs.
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