The Farm Credit Act and other statutes governing the Farm Credit System and the Farm Credit Administration Contents Farm Credit Act of 1971, as amended .............................................................................................................................. 1 Introduction .................................................................................................................................................................. 2 Title I—Farm Credit Banks ......................................................................................................................................... 3 Sec. 1.1. Policy and Objectives.— .................................................................................................................... 3 Sec. 1.2. The Farm Credit System.— ............................................................................................................... 3 Sec. 1.3. Establishment, Charters, Titles, Branches. ......................................................................................... 4 Sec. 1.4. Board of Directors. ............................................................................................................................. 4 Sec. 1.5. General Corporate Powers. ................................................................................................................ 4 Sec. 1.6. Farm Credit Bank Capitalization. ....................................................................................................... 6 Sec. 1.7. Lending Authority. ............................................................................................................................. 6 Sec. 1.8. Interest rates and Other Charges. ....................................................................................................... 8 Sec. 1.9. Eligibility.9 Sec. 1.10. Security; Terms. ............................................................................................................................... 9 Sec. 1.11. Purposes for Extensions of Credit. ................................................................................................. 10 Sec. 1.12. Related Services. ............................................................................................................................ 11 Sec. 1.13. Loans through Associations or Agents. .......................................................................................... 11 Sec. 1.14. Liens on Stock. ............................................................................................................................... 11 Sec. 1.15. Taxation.11 Title II—Farm Credit Associations ............................................................................................................................ 12 Subtitle A—Production Credit Associations .......................................................................................................... 12 Sec. 2.0. Organization and Charters. ............................................................................................................... 12 Sec. 2.1. Board of Directors. ........................................................................................................................... 13 Sec. 2.2. General Corporate Powers. .............................................................................................................. 13 Sec. 2.3. Production Credit Association Capitalization. ................................................................................. 15 Sec. 2.4. Short- and Intermediate-Term Loans; Participation; Other Financial Assistance; Terms; Conditions; Interest; Security.......................................................................................................................... 15 Sec. 2.5. Other Services. ................................................................................................................................. 17 Sec. 2.6. Liens on Stock. ................................................................................................................................. 17 Sec. 2.7. Taxation.17 Subtitle B—Federal Land Bank Associations ......................................................................................................... 17 Sec. 2.10. Organizations; Articles; Charters; Powers of the Farm Credit Administration. ............................. 17 Sec. 2.11. Board of Directors. ......................................................................................................................... 18 Sec. 2.12. General Corporate Powers.............................................................................................................. 18 Sec. 2.13. Federal Land Bank Association Capitalization. ............................................................................. 20 Sec. 2.14. Agreements for Sharing Gains or Losses. ...................................................................................... 20 Sec. 2.15. Liens on Stock. ............................................................................................................................... 21 Sec. 2.16. Taxation.21 Title III—Banks for Cooperatives ............................................................................................................................. 22 i Part A—Banks for Cooperatives............................................................................................................................. 22 Sec. 3.0. Establishment; Titles; Branches. ...................................................................................................... 22 Sec. 3.1. Corporate Existence; General Corporate Powers. ............................................................................ 22 Sec. 3.2. Board of Directors. ........................................................................................................................... 25 Sec. 3.3. Bank for Coopertives Stock; Value; Classes of Stock; Voting; Exchange. ...................................... 25 Sec. 3.4. Dividends.26 Sec. 3.5. Retirement of Stock. ......................................................................................................................... 26 Sec. 3.6. Guaranty Fund Subscriptions In Lieu of Stock. ............................................................................... 26 Sec. 3.7. Lending Power. ................................................................................................................................ 26 Sec. 3.8. Eligibility.29 Sec. 3.9. Ownership of Stock by Borrowers. .................................................................................................. 31 Sec. 3.10. Interest Rates; Security; Lien; Cancellation; and Application on Indebtedness. ............................ 31 Sec. 3.11. Earnings and Reserves; Application of Savings. ............................................................................ 32 Sec. 3.12. Distribution of Assets on Liquidation or Dissolution. .................................................................... 32 Sec. 3.13. Taxation.33 Part B—National Banks for Cooperatives .............................................................................................................. 33 Sec. 3.20. Charter, Powers, and Operation. .................................................................................................... 33 Sec. 3.21. [Repealed] ...................................................................................................................................... 33 Sec. 3.22. Credit Delivery Office. ................................................................................................................... 33 Sec. 3.23. Consolidation of Functions. ........................................................................................................... 34 Sec. 3.24. Exchange of Ownership Interests. .................................................................................................. 34 Sec. 3.25. Capitalization. ................................................................................................................................ 34 Sec. 3.26. Patronage Pools. ............................................................................................................................. 34 Sec. 3.27. Transactions to Accomplish Merger. ............................................................................................. 34 Sec. 3.28. Lending Limits. .............................................................................................................................. 34 Sec. 3.29. [Repealed] ...................................................................................................................................... 35 Title IV—Provisions Applicable to Two or More Classes of Institutions of the System .......................................... 36 Introduction ............................................................................................................................................................. 36 Part A. Funding ....................................................................................................................................................... 36 Sec. 4.1. [Repealed]36 Sec. 4.2. Power to Borrow; Issuance of Notes, Bonds, Debentures, and Other Obligations. ......................... 36 Sec. 4.3. Capital Adequacy of Banks and Associations. ................................................................................. 37 Sec. 4.3A. Capitalization