Statute: 1971 ACT AS AMENDED
Title: Title VII Restructuring of System Institutions
Subtitle: Subtitle B Mergers, Transfers of Assets, and Powers of Associations Within a District
Chapter Name: Chapter 1 Transfers by Federal Land Banks to Federal Land Bank Associations
U.S. Code Citation: 12 U.S.C. 2279c
12 U.S.C. 2279c SEC. 7.7. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN DISTRICT ASSOCIATIONS.
(a) EQUALIZATION OF LOAN-MAKING POWERS.—
(1) IN GENERAL.--
(A) FEDERAL LAND BANK ASSOCIATIONS.--Subject to paragraph (2), any association that owns a Federal land bank association authorized as of January 1, 2007, to make long-term loans under title I in its chartered territory within the geographic area described in subsection (b) may make short- and intermediate-term loans and otherwise operate as a production credit association under title II within the same chartered territory.
(B) PRODUCTION CREDIT ASSOCIATIONS.--Subject to paragraph (2), any association that under its charter has title I lending authority and that owns a production credit association authorized as of January 1, 2007, to make short- and intermediate-term loans under title II in the geographic area described in subsection (b) may make long-term loans and otherwise operate, directly or through a subsidiary association, as a Federal land bank association or Federal land credit association under title I in the geographic area.
(C) FARM CREDIT BANK.--Notwithstanding section 5.17(a), the Farm Credit Bank with which any association had a written financing agreement as of January 1, 2007, may make loans and extend other comparable financial assistance with respect to, and may purchase, any loans made under the new authority provided under subparagraph (A) and (B) by an association exercising such authority.
(2) REQUIRED APPROVALS.--An association may exercise the additional authority provided for in paragraph (1) only after the exercise of the authority is approved by--
(A) the board of directors of the association; and
(B) a majority of the voting stockholders of the association (or, if the association is a subsidiary of another association, the voting stockholders of the parent association) voting, in person or by proxy, at a duly authorized meeting of stockholders in accordance with the process described in section 7.11.
(b) APPLICABILITY.--This section applies only to association the chartered territory of which was within the geographic area served by the Federal intermediate credit bank immediately prior to its merger with a Farm Credit Bank under section 410(e)(1) of the Agricultural Credit Act of 1987 (12 U.S.C. 2011 note; Public Law 100-233).
NOTE: The amendments made by section 5407 of Public Law 110-246 became effective on January 1, 2010.
[FCA Home | FCA Handbook]