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12 U.S.C. § 2131 — Eligibility
Federal law — U.S. Code and appendices · legal_authorities
**(a)** Any association of farmers, producers or harvesters of aquatic products, or any federation of such associations, which is operated on a cooperative basis, and has the powers for processing, preparing for market, handling, or marketing farm or aquatic products; or for purchasing, testing, grading, processing, distributing, or furnishing farm or aquatic supplies or furnishing farm or aquatic business services or services to eligible cooperatives and conforms to either of the two following requirements:
(1) no member of the association is allowed more than one vote because of the amount of stock or membership capital he may own therein; or
(2) does not pay dividends on stock or membership capital in excess of such per centum per annum as may be approved under regulations of the Farm Credit Administration; and in any case
(3) does not deal in farm products or aquatic products, or products processed therefrom, farm or aquatic supplies, farm or aquatic business services, or services to eligible cooperatives with or for nonmembers in an amount greater in value than the total amount of such business transacted by it with or for members, excluding from the total of member and nonmember business transactions with the United States or any agency or instrumentality thereof or services or supplies furnished as a public utility; and
(4) a percentage of the voting control of the association not less than 80 per centum (60 per centum (A) in the case of rural electric, telephone, public utility, and service cooperatives; (B) in the case of local farm supply cooperatives that have historically served needs of the community that would not adequately be served by other suppliers and have experienced a reduction in the percentage of farmer membership due to changed circumstances
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Source file: Laws/federal/codes/united-states-code/title-12/section-2131-eligibility--0148f0c1b7.md
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Source location: Title 12, Chapter 23, § 2131; chapter-023-farm-credit-system.md
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**(a)** Any association of farmers, producers or harvesters of aquatic products, or any federation of such associations, which is operated on a cooperative basis, and has the powers for processing, preparing for market, handling, or marketing farm or aquatic products; or for purchasing, testing, grading, processing, distributing, or furnishing farm or aquatic supplies or furnishing farm or aquatic business services or services to eligible cooperatives and conforms to either of the two following requirements:
(1) no member of the association is allowed more than one vote because of the amount of stock or membership capital he may own therein; or
(2) does not pay dividends on stock or membership capital in excess of such per centum per annum as may be approved under regulations of the Farm Credit Administration; and in any case
(3) does not deal in farm products or aquatic products, or products processed therefrom, farm or aquatic supplies, farm or aquatic business services, or services to eligible cooperatives with or for nonmembers in an amount greater in value than the total amount of such business transacted by it with or for members, excluding from the total of member and nonmember business transactions with the United States or any agency or instrumentality thereof or services or supplies furnished as a public utility; and
(4) a percentage of the voting control of the association not less than 80 per centum (60 per centum (A) in the case of rural electric, telephone, public utility, and service cooperatives; (B) in the case of local farm supply cooperatives that have historically served needs of the community that would not adequately be served by other suppliers and have experienced a reduction in the percentage of farmer membership due to changed circumstances beyond their control such as, but not limited to, urbanization of the community; and (C) in the case of local farm supply cooperatives that provide or will provide needed services to a community and that are or will be in competition with a cooperative specified in paragraph (B)) or, with respect to any type of association or cooperative, such higher percentage as established by the bank board, is held by farmers, producers or harvesters of aquatic products, or eligible cooperative associations as defined herein;
shall be eligible to borrow from a bank for cooperatives. Any such association that has received a loan from a bank for cooperatives shall, without regard to the requirements of paragraphs (1) through (4), continue to be eligible for so long as more than 50 percent (or such higher percentage as is established by the bank board) of the voting control of the association is held by farmers, producers or harvesters of aquatic products, or eligible cooperative associations.
**(b)** Notwithstanding any other provision of this section:
(1) The following entities shall also be eligible to borrow from a bank for cooperatives:
(A) Cooperatives and other entities that have received a loan, loan commitment, or loan guarantee from the Rural Electrification Administration (or any successor agency), or that are eligible under the Rural Electrification Act of 1936 ([7 U.S.C. 901](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section901&num=0&edition=prelim) et seq.) for a loan, loan commitment, or loan guarantee from the Administration or the Bank (or a successor of the Administration or the Bank), and subsidiaries of such cooperatives or other entities.
(B) Any legal entity that (i) holds more than 50 percent of the voting control of an association or other entity that is eligible to borrow from a bank for cooperatives under subsection (a) or subparagraph (A) of this paragraph, and (ii) borrows for the purpose of making funds available to that association or entity, and makes funds available to that association or entity under the same terms and conditions that the funds are borrowed from a bank for cooperatives.
(C) Any cooperative or other entity described in subsection (b) or (f) of [section 2128 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2128&num=0&edition=prelim).
(D) Any creditworthy private entity that satisfies the requirements for a service cooperative under paragraphs (1), (2), and (4), or under the last sentence, of subsection (a) and subsidiaries of the entity, if the entity is organized to benefit agriculture in furtherance of the welfare of its farmer-members and is operated on a not-for-profit basis.
(2) Notwithstanding the provisions of [section 2130 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2130&num=0&edition=prelim), the board of directors of a bank for cooperatives may determine that, with respect to a loan to any borrower eligible to borrow from a bank under paragraph (1)(A) that is fully guaranteed by the United States, no stock purchase requirement shall apply, other than the requirement that a borrower eligible to own voting stock shall purchase one share of such stock.
(3) Each association and other entity eligible to borrow from a bank for cooperatives under this subsection, for purposes of [section 2128(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2128/a&num=0&edition=prelim), shall be treated as an eligible cooperative association and a stockholder eligible to borrow from the bank.
(4) Nothing in this subsection shall be construed to adversely affect the eligibility, as it existed on January 6, 1988, of cooperatives and other entities for any other credit assistance under Federal law.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Authorities** The banks for cooperatives are authorized to make loans and commitments to eligible cooperative associations and to extend to them other technical and financial assistance at any time (whether or not they have a loan from the bank outstanding), including but not limited to discounting notes and other obligations, guarantees, currency exchange necessary to service individual transactions that may be financed under subsection (b) of this section, collateral custody, or participation with other banks for cooperatives and commercial banks or other financial institutions in loans to eligible cooperatives, under such terms and conditions as may be determined to be feasible by the board of directors of each bank for cooperatives under regulations of the Farm Credit Administration. Each bank may own and lease, or lease with option to purchase, to stockholders eligible to borrow from the bank equipment needed in the operations of the stockholder and may make or participate in loans or commitments and extend other technical and financial assistance to other domestic parties for the acquisition of equipment and facilities to be leased to such stockholders for use in their operations in the United States.
**(b) Additional authorities**
(1) A bank for cooperatives is authorized to make or participate in loans and commitments to, and to extend other technical and financial assistance to a domestic or foreign party with respect to its transactions with an association that is a voting stockholder of the bank for the import of agricultural commodities or products thereof, agricultural supplies, or aquatic products through purchases, sales or exchanges, if the bank for cooperatives determines, under regulations of the Farm Credit Administration, that the voting stoc
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 2130
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Voluntary liquidation** The Corporation may voluntarily liquidate only with the consent of, and in accordance with a plan of liquidation approved by, the Farm Credit Administration Board.
**(b) Involuntary liquidation**
(1) **In general** — The Farm Credit Administration Board may appoint a conservator or receiver for the Corporation under the circumstances specified in [section 2183(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2183/b&num=0&edition=prelim).
(2) **Application** — In applying [section 2183(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2183/b&num=0&edition=prelim) to the Corporation under paragraph (1)—
(A) the Corporation shall also be considered insolvent if the Corporation is unable to pay its debts as they fall due in the ordinary course of business;
(B) a conservator may also be appointed for the Corporation if the authority of the Corporation to purchase qualified loans or issue or guarantee loan-backed securities is suspended; and
(C) a receiver may also be appointed for the Corporation if—
(i)
(I) the authority of the Corporation to purchase qualified loans or issue or guarantee loan-backed securities is suspended; or
(II) the Corporation is classified under [section 2279bb–4 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2279bb-4&num=0&edition=prelim) as within level III or IV and the alternative actions available under part B are not satisfactory; and
(ii) the Farm Credit Administration determines that the appointment of a conservator would not be appropriate.
(3) **No effect on supervisory actions** — The grounds for appointment of a conservator for the Corporation
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 2002
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Source** The Secretary shall provide the price support authorized or required herein through the Commodity Credit Corporation and other means available to him.
**(b) Authority of Secretary; factors considered** Except as otherwise provided in this Act, the amounts, terms, and conditions of price support operations and the extent to which such operations are carried out, shall be determined or approved by the Secretary. The following factors shall be taken into consideration in determining, in the case of any commodity for which price support is discretionary, whether a price-support operation shall be undertaken and the level of such support and, in the case of any commodity for which price support is mandatory, the level of support in excess of the minimum level prescribed for such commodity: (1) the supply of the commodity in relation to the demand therefor, (2) the price levels at which other commodities are being supported and, in the case of feed grains, the feed values of such grains in relation to corn, (3) the availability of funds, (4) the perishability of the commodity, (5) the importance of the commodity to agriculture and the national economy, (6) the ability to dispose of stocks acquired through a price-support operation, (7) the need for offsetting temporary losses of export markets, (8) the ability and willingness of producers to keep supplies in line with demand and (9), in the case of upland cotton, changes in the cost of producing such cotton.
**(c) Compliance by producer; program for diverted acres** Compliance by the producer with acreage allotments, production goals and marketing practices (including marketing quotas when authorized by law), prescribed by the Secretary, may be required as a condition of eligibility for price support. In admi
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1421
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Federal law — U.S. Code and appendices · legal_authorities
Nonvoting investment stock and participation certificates may be called for retirement at par. With the approval of the issuing bank, the holder may elect not to have the called stock or participation certificates retired in response to a call, reserving the right to have such stock or participation certificates included in the next call for retirement. Voting stock may also be retired at par, on call or on such revolving basis as the board may determine with due regard for its total capital needs: Provided, however, That all equities in the banks issued or allocated with respect to 1971 and prior years shall be retired on a revolving basis according to the year of issue with the oldest outstanding equities being first retired. Equities issued for subsequent years shall not be called or retired until equities described in the preceding sentence of this proviso have been retired.
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 2128
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Federal law — U.S. Code and appendices · legal_authorities
This chapter may be cited as the “Rural Electrification Act of 1936”.
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 901
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
Page 1319
TITLE 12—BANKS AND BANKING
§ 2132
Editorial Notes
AMENDMENTS
2018—Subsec. (a). Pub. L. 115–334 struck out at end
‘‘In the case of a direct loan by the Central Bank, the
borrower shall be required to own or invest in the nec-
essary stock in a district bank or banks and such dis-
trict bank shall be required to own a corresponding
amount of stock in the Central Bank, but voting stock
shall be in the one district bank, designated by the
Farm Credit Administration.’’
1988—Subsec. (a). Pub. L. 100–233 substituted ‘‘by the
bank to invest’’ for ‘‘by the bank with the approval of
the Farm Credit Administration to invest’’, ‘‘or upon
such other basis as the bank determines’’ for ‘‘or upon
such other basis as the bank, with the approval of the
Farm Credit Administration, determines’’, and ‘‘in a
district bank or banks and such district bank shall be
required’’ for ‘‘in a district bank or banks as may be
approved by the Farm Credit Administration and such
district bank shall be required’’.
1980—Subsec. (a). Pub. L. 96–592 inserted provisions
respecting entitlement to hold voting stock.
§ 2131. Loans
(a) Interest rates and charges
Loans made by a bank for cooperatives shall
bear interest at a rate or rates determined by
the board of directors of the bank from time to
time. In setting rates and charges, it shall be
the objective to provide the types of credit need-
ed by eligible borrowers at the lowest reasonable
cost on a sound business basis, taking into ac-
count the net cost of money to the bank, nec-
essary reserves and expenses of the bank, and
services provided. The loan documents may pro-
vide for the interest rate or rates to vary from
time to time during the repayment period of the
loan, in accordance with the rate or rates cur-
ren
Source: Supplied 2024 U.S. Code historical extraction · 12 U.S.C. § 2131
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.
Federal law — U.S. Code and appendices · legal_authorities
Page 518
TITLE 7—AGRICULTURE
§ 901
Sec.
918b.
Acquisition of existing systems in rural com-
munities with high energy costs.
918c.
Rural and remote communities electrifica-
tion grants.
SUBCHAPTER II—RURAL TELEPHONE SERVICE
921.
Congressional declaration of policy.
921a, 921b. Repealed.
922.
Loans for telephone service.
923.
State regulation of telephone service.
924.
Definition of telephone service and rural
area.
925.
Loan feasibility.
926.
Certain rural development investments by
qualified telephone borrowers not treated
as dividends or distributions.
927.
General duties and prohibitions.
928.
Prompt processing of telephone loans.
SUBCHAPTER III—RURAL ELECTRIC AND
TELEPHONE DIRECT LOAN PROGRAMS
930.
Congressional declaration of policy.
931.
Rural Electrification and Telephone Revolv-
ing Fund.
931a.
Level of loan programs under Rural Elec-
trification and Telephone Revolving Fund.
932.
Liabilities and uses of Rural Electrification
and Telephone Revolving Fund.
933.
Moneys in the Rural Electrification and Tele-
phone Revolving Fund.
934.
Authorized financial transactions; interim
notes; purchase of obligations for resale;
sale of notes and certificates; liens.
935.
Insured loans; interest rates and lending lev-
els.
936.
Guaranteed loans; accommodation and subor-
dination of liens; interest rates; assign-
ability of guaranteed loans and related
guarantees.
936a.
Prepayment of loans.
936b.
Sale or prepayment of direct or insured loans.
936c.
Refinancing and prepayment of FFB loans.
936d.
Eligibility
of
distribution
borrowers
for
loans, loan guarantees, and lien accom-
modations.
936e.
Administrative prohibitions applicable to cer-
tain electric borrowers.
936f.
Substantially underserved trust areas.
937.
Source: Supplied 2024 U.S. Code historical extraction · 7 U.S.C. § 901
Stored review status: historical_2024_not_currentness_verified. The source passage cites 7 U.S.C. § 901. This identifies an authority to review, not proof of applicability.