12 U.S.C. § 2011 - Establishment, charters, titles, branches

• Cite as: 12 U.S.C. § 2011

(a) Establishment

The banks established pursuant to the merger of each District Federal Intermediate Credit Bank and Federal Land Bank (hereinafter referred to in this subchapter as "Farm Credit Banks"), as provided in section 410 of the Agricultural Credit Act of 1987, shall be Federally chartered instrumentalities of the United States.

(b) Charters

The Farm Credit Administration shall, consistent with this chapter, issue charters for, and approve amendments to charters of, the Farm Credit Banks.

(c) Title

Each Farm Credit Bank may include in its title the name of the city in which it is located or other geographical designation.

(d) Branches

Each Farm Credit Bank may establish such branches or other offices as may be appropriate for the effective operation of its business.

Cite as 12 U.S.C. § 2011

Source: Pub. L. 92-181, title I, §1.3, as added Pub. L. 100-233, title IV, §401, Jan. 6, 1988, 101 Stat. 1622; amended Pub. L. 100-399, title IV, §401(a), (b), Aug. 17, 1988, 102 Stat. 995.

Notes from the Office of Law Revision Counsel

current through 7/7/2021

EDITORIAL NOTES

REFERENCES IN TEXT

Section 410 of the Agricultural Credit Act of 1987, referred to in subsec. (a), is section 410 of Pub. L. 100-233 which is set out as a note below.

PRIOR PROVISIONS

A prior section 2011, Pub. L. 92-181, title I, §1.3, Dec. 10, 1971, 85 Stat. 583; Pub. L. 100-233, title VIII, §802(a), Jan. 6, 1988, 101 Stat. 1710, related to establishment, title, and branches of Federal land banks prior to the general amendment of this subchapter by Pub. L. 100-233, §401.

AMENDMENTS

1988-Subsec. (a). Pub. L. 100-399, §401(a), inserted ", as provided in section 410 of the Agricultural Credit Act of 1987," before "shall".

Subsec. (b). Pub. L. 100-399, §401(b), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: "The charters or organization certificates of Farm Credit Banks may be modified from time to time by the Farm Credit Administration Board, not inconsistent with the provisions of this subchapter, as may be necessary or expedient to implement this chapter."

STATUTORY NOTES AND RELATED SUBSIDIARIES

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.

EFFECTIVE DATE

Pub. L. 100-233, title IV, §401, Jan. 6, 1988, 101 Stat. 1622, provided that this section is effective 6 months after Jan. 6, 1988.

LONG-TERM LENDING AUTHORITY OF FARM CREDIT BANK OF TEXAS WITH RESPECT TO STATES OF ALABAMA, LOUISIANA, AND MISSISSIPPI

<actcitation href="" statecd="US" sessionyear="1992" actaltid="102-552" description="Entitled, "An Act to enhance the financial safety and soundness of the banks and associations of the Farm Credit System, and for other purposes"">Pub. L. 102-552</actcitation>, title IV, §401(b), Oct. 28, 1992, 106 Stat. 4128, as amended by Pub. L. 110-234, title V, §5407(c)(3), May 22, 2008, 122 Stat. 1160; Pub. L. 110-246, §4(a), title V, §5407(c)(3), June 18, 2008, 122 Stat. 1664, 1922, provided that:</subpara>

"(1) IN GENERAL.-Notwithstanding any other provision of law (except section 7.7 of the Farm Credit Act of 1971 [ 12 U.S.C. 2279c ]), the Farm Credit Bank of Texas may act in accordance with the exclusive charter of the bank, as amended by the Farm Credit Administration on February 7, 1989, and effective February 9, 1989 (except to the extent that the charter may be further amended by the Farm Credit Administration in accordance with its general authorities under the Farm Credit Act of 1971 ( 12 U.S.C. 2001 et seq.).

"(2) EFFECTIVE DATE.-Paragraph (1) shall take effect as if such paragraph had become law on February 7, 1989."

</para>

MANDATORY MERGER OF SYSTEM INSTITUTIONS

Pub. L. 100-233, title IV, §410, Jan. 6, 1988, 101 Stat. 1637, as amended by Pub. L. 100-399, title IV, §402, Aug. 17, 1988, 102 Stat. 999; <actcitation href="" statecd="US" sessionyear="1992" actaltid="102-552" description="Entitled, "An Act to enhance the financial safety and soundness of the banks and associations of the Farm Credit System, and for other purposes"">Pub. L. 102-552</actcitation>, title IV, §401(a), Oct. 28, 1992, 106 Stat. 4116; Pub. L. 110-234, title V, §5407(c)(2), May 22, 2008, 122 Stat. 1160; Pub. L. 110-246, §4(a), title V, §5407(c)(2), June 18, 2008, 122 Stat. 1664, 1922, provided that:</subpara>

"(a) IN GENERAL.-Not later than 6 months after the date of the enactment of this section [Jan. 6, 1988], the Federal land bank and the Federal intermediate credit bank of each Farm Credit System district shall merge into a Farm Credit Bank in such district pursuant to a plan of merger agreed on by the Boards of Directors of such banks and approved by the Farm Credit Administration, or if such banks fail to agree, a plan of merger prescribed by the Farm Credit Administration. The mergers required by this section shall be implemented without regard to title VII [enacting sections 2279aa to 2279aa-14 of this title, amending sections 2012, 2033, 2072, and 2093 of this title, section 1988 of Title 7, Agriculture, and section 9105 of Title 31, Money and Finance, and enacting provisions set out as notes under section 2279aa of this title and section 1988 of Title 7].

"(b) CAPITAL STOCK.-Notwithstanding section 1.6 (as added by section 401 of this Act) [ 12 U.S.C. 2014 ], the number of shares of capital stock issued by a Farm Credit Bank to stockholders and other owners of the institution involved in the merger, and the rights and privileges of such shares (including voting power, redemption rights, preferences on liquidation, and the right to dividends) shall be determined by the plan of merger adopted by the merging banks, and shall be consistent with section 4.3A [ 12 U.S.C. 2154a ] and the regulations issued by the Farm Credit Administration.

"(c) ASSISTANCE.-The Assistance Board established under section 6.0 [ 12 U.S.C. 2278a ] shall direct the Financial Assistance Corporation established under section 6.20 [former 12 U.S.C. 2278b ] to provide any Farm Credit Bank with that amount of financial assistance as is necessary to ensure that the stock of the Farm Credit Bank, upon implementation of the merger, has a book value equal to 75 percent of par, and such Farm Credit Bank shall be subject to all of the requirements of title VI of the Farm Credit Act of 1971 [ 12 U.S.C. 2278a et seq.].

"(d) INITIAL BOARD.-Notwithstanding section 1.4 (as added by section 401 of this Act) [ 12 U.S.C. 2012 ], the initial board of each Farm Credit Bank shall be composed of the members of the district board (which is dissolved upon the creation of such bank) elected by the production credit associations, Federal land bank associations, and stockholders at large. Such initial board shall operate for such term as is agreed to by the members of the board, except that such period shall not exceed two years. Thereafter the board shall be elected and serve in accordance with the provisions of section 1.4 of the Farm Credit Act of 1971 [ 12 U.S.C. 2012 ].

"(e) CLARIFICATION OF AUTHORITY REGARDING REMAINING FEDERAL INTERMEDIATE CREDIT BANK.-

"(1) NEGOTIATED MERGER.-

"(A) REQUIREMENT.-

"(i) IN GENERAL.-Not later than June 30, 1993, except as provided in subparagraph (C), the Federal Intermediate Credit Bank of Jackson (as chartered on the date of enactment of this subsection [Oct. 28, 1992]) shall merge with a Farm Credit Bank pursuant to the procedures prescribed by section 7.12 of the Farm Credit Act of 1971 ( 12 U.S.C. 2279f ).

"(ii) MERGER OF ENTIRE BANK.-Notwithstanding subparagraph (B), or any other provision of law, the Farm Credit Administration shall approve a merger of the Federal Intermediate Credit Bank of Jackson only if the Bank (as chartered on the date of enactment of this subsection [Oct. 28, 1992], except as provided in subparagraph (B)(ii)(II)(bb)) merges in its entirety with a Farm Credit Bank.