12 U.S.C. § 2143 — Credit delivery office

Page 1321 TITLE 12—BANKS AND BANKING § 2143 Editorial Notes AMENDMENTS 1988—Pub. L. 100–233 inserted ‘‘the’’ before ‘‘Farm Credit Administration’’. 1985—Pub. L. 99–205 struck out ‘‘, any stock held by the Governor of the Farm Credit Administration at par’’ before ‘‘, and all nonvoting stock at par’’, and struck out ‘‘stock held by the Governor of the Farm Credit Administration,’’ before ‘‘and voting stock pro rata’’ in first sentence. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1985 AMENDMENT Amendment by Pub. L. 99–205 effective thirty days after Dec. 23, 1985, see section 401 of Pub. L. 99–205, set out as a note under section 2001 of this title. § 2134. Taxation Each bank for cooperatives and its obligations are instrumentalities of the United States and as such any and all notes, debentures, and other obligations issued by such bank shall be exempt, both as to principal and interest from all tax- ation (except surtaxes, estate, inheritance, and gift taxes) now or hereafter imposed by the United States or any State, territorial, or local taxing authority, except that interest on such obligations shall be subject to Federal income taxation in the hands of the holder. (Pub. L. 92–181, title III, § 3.13, Dec. 10, 1971, 85 Stat. 608; Pub. L. 99–205, title II, § 205(e)(10), Dec. 23, 1985, 99 Stat. 1705; Pub. L. 100–233, title VIII, § 805(p), Jan. 6, 1988, 101 Stat. 1716.) Editorial Notes AMENDMENTS 1988—Pub. L. 100–233 inserted before period at end ‘‘, except that interest on such obligations shall be sub- ject to Federal income taxation in the hands of the holder’’. 1985—Pub. L. 99–205 struck out last two sentences re- lating to exemption of banks for cooperatives and their property, franchises, capital, reserves, surplus, other funds, and income from Federal and non-Federal tax- ation except for Federal income taxation of interest on obligations of such banks and for Federal and non-Fed- eral taxation of real and tangible personal property of such banks to same extent as similar property is taxed, and making such exemption provisions applicable only for any year or part thereof in which stock in such banks was held by the Governor of the Farm Credit Ad- ministration. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1985 AMENDMENT Amendment by Pub. L. 99–205 effective thirty days after Dec. 23, 1985, see section 401 of Pub. L. 99–205, set out as a note under section 2001 of this title. PART B—NATIONAL BANKS FOR COOPERATIVES Editorial Notes CODIFICATION Pub. L. 115–334, title V, § 5411(12), Dec. 20, 2018, 132 Stat. 4680, struck out ‘‘United and’’ before ‘‘National’’ in part heading. § 2141. Charter, powers, and operation (a) Charter The National Bank for Cooperatives (herein- after in this part referred to as the ‘‘consoli- dated bank’’), established under section 413 of the Agricultural Credit Act of 1987, shall be a federally chartered instrumentality of the United States and an institution of the Farm Credit System. (b) Powers The consolidated bank and the board of direc- tors of such bank shall have all of the powers, rights, responsibilities, and obligations of the constituent banks described in section 413(b) of the Agricultural Credit Act of 1987 (12 U.S.C. 2121 note; Public Law 100–233) and the boards of directors of such banks, except as otherwise pro- vided for in this chapter. (c) Operation The consolidated bank shall be organized and operated on a cooperative basis. (Pub. L. 92–181, title III, § 3.20, as added Pub. L. 100–233, title IV, § 415(2), Jan. 6, 1988, 101 Stat. 1642; amended Pub. L. 100–399, title IV, § 407(a), (b), Aug. 17, 1988, 102 Stat. 1000; Pub. L. 115–334, title V, § 5411(13), Dec. 20, 2018, 132 Stat. 4680.) Editorial Notes REFERENCES IN TEXT Section 413 of the Agricultural Credit Act of 1987, re- ferred to in subsecs. (a) and (b), is section 413 of Pub. L. 100–233, which is set out as a note under section 2121 of this title. AMENDMENTS 2018—Subsec. (a). Pub. L. 115–334, § 5411(13)(A), struck out ‘‘or the United Bank for Cooperatives, as the case may be’’ after ‘‘National Bank for Cooperatives’’. Subsec. (b). Pub. L. 115–334, § 5411(13)(B), substituted ‘‘the constituent banks described in section 413(b) of the Agricultural Credit Act of 1987 (12 U.S.C. 2121 note; Public Law 100–233)’’ for ‘‘the district banks for co- operatives and the Central Bank for Cooperatives’’. 1988—Subsec. (a). Pub. L. 100–399, § 407(a), struck out ‘‘in this section’’ after ‘‘referred to’’ and inserted ‘‘, established under section 413 of the Agricultural Credit Act of 1987,’’ before ‘‘shall’’. Subsec. (b). Pub. L. 100–399, § 407(b), inserted ‘‘except’’ before ‘‘as otherwise’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–399 effective as if enacted immediately after enactment of Pub. L. 100–233, which was approved Jan. 6, 1988, see section 1001(a) of Pub. L. 100–399, set out as a note under section 2002 of this title. § 2142. Repealed. Pub. L. 115–334, title V, § 5411(14), Dec. 20, 2018, 132 Stat. 4680 Section, Pub. L. 92–181, title III, § 3.21, as added Pub. L. 100–233, title IV, § 415(2), Jan. 6, 1988, 101 Stat. 1642; amended Pub. L. 100–399, title IV, § 407(c), (d), Aug. 17, 1988, 102 Stat. 1000, related to provisions for the board of directors of a consolidated bank. § 2143. Credit delivery office On a determination by the board of directors of the consolidated bank that the bank’s loan portfolio is concentrated in any one district or districts (according to the district boundaries in effect immediately prior to the effective date of the establishment of the bank under section 413 of the Agricultural Credit Act of 1987), the bank Page 1322 TITLE 12—BANKS AND BANKING § 2144 may consider the creation of regional service centers to accommodate such loan concentra- tions. (Pub. L. 92–181, title III, § 3.22, as added Pub. L. 100–233, title IV, § 415(2), Jan. 6, 1988, 101 Stat. 1643; amended Pub. L. 100–399, title IV, § 407(e), Aug. 17, 1988, 102 Stat. 1000.) Editorial Notes REFERENCES IN TEXT Section 413 of the Agricultural Credit Act of 1987, re- ferred to in text, is section 413 of Pub. L. 100–233, which is set out as a note under section 2121 of this title. AMENDMENTS 1988—Pub. L. 100–399 substituted ‘‘consolidated bank’’ for ‘‘United Bank for Cooperatives or the National Bank for Cooperatives’’ and ‘‘establishment of the bank under section 413 of the Agricultural Credit Act of 1987’’ for ‘‘merger’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–399 effective as if enacted immediately after enactment of Pub. L. 100–233, which was approved Jan. 6, 1988, see section 1001(a) of Pub. L. 100–399, set out as a note under section 2002 of this title. § 2144. Consolidation of functions Subject to section 2143 of this title, to the greatest extent practicable, the functions of the consolidated bank shall be consolidated in the central office of the bank. (Pub. L. 92–181, title III, § 3.23, as added Pub. L. 100–233, title IV, § 415(2), Jan. 6, 1988, 101 Stat. 1644.) § 2145. Exchange of ownership interests On the establishment of the consolidated bank, ownership interests of the stockholders and subscribers to the guaranty funds of the constituent district banks for cooperatives (in- cluding stock, participation certificates, and al- located equities) shall be exchanged for like ownership interests in the consolidated bank on a book value basis. (Pub. L. 92–181, title III, § 3.24, as added Pub. L. 100–233, title IV, § 415(2), Jan. 6, 1988, 101 Stat. 1644.) § 2146. Capitalization In accordance with section 2154a of this title, each consolidated bank shall provide, through bylaws and subject to Farm Credit Administra- tion regulations, for the capitalization of the bank and the manner in which bank stock shall be issued, held, transferred, and retired and bank earnings distributed. (Pub. L. 92–181, title III, § 3.25, as added Pub. L. 100–233, title IV, § 415(2), Jan. 6, 1988, 101 Stat. 1644; amended Pub. L. 100–399, title IV, § 407(f), Aug. 17, 1988, 102 Stat. 1000.) Editorial Notes AMENDMENTS 1988—Pub. L. 100–399 amended section generally. Prior to amendment, section read as follows: ‘‘The board of directors of the consolidated bank shall provide for the capitalization of such bank in accordance with the pro- visions of section 2154a of this title.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–399 effective as if enacted immediately after enactment of Pub. L. 100–233, which was approved Jan. 6, 1988, see section 1001(a) of Pub. L. 100–399, set out as a note under section 2002 of this title. § 2147. Patronage pools Under such terms and conditions as may be de- termined by its board of directors, the consoli- dated bank may— (1) for a period of at least 3 years following January 6, 1988, establish separate patronage pools consisting of loans to eligible borrowers located in each constituent farm credit dis- trict (as such district existed on January 6, 1988); and (2) allocate revenues, expenses, and net sav- ings among such pools on an equitable basis. (Pub. L. 92–181, title III, § 3.26, as added Pub. L. 100–233, title IV, § 415(2), Jan. 6, 1988, 101 Stat. 1644.) § 2148. Transactions to accomplish merger The receipt of assets or assumption of liabil- ities by the consolidated bank, the exchange of stock, equities, or other ownership interests, and any other transaction carried out in accom- plishing the merger of the banks for coopera- tives shall not be treated as a taxable event under the laws of the United States or of any State or political subdivision thereof. The pre- ceding sentence shall also apply to the receipt of assets and liabilities by a cooperative to the ex- tent that the net amount of the distribution is immediately reinvested in stock of a consoli- dated bank (and in such case the basis of such stock shall be appropriately reduced by the amount of gain not recognized by reason of this sentence). (Pub. L. 92–181, title III, § 3.27, as added Pub. L. 100–233, title IV, § 415(2), Jan. 6, 1988, 101 Stat. 1644; amended Pub. L. 100–399, title IV, § 407(g), Aug. 17, 1988, 102 Stat. 1001.) Editorial Notes AMENDMENTS 1988—Pub. L. 100–399 substituted ‘‘cooperative’’ for ‘‘taxable institution’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–399 effective as if enacted immediately after enactment of Pub. L. 100–233, which was approved Jan. 6, 1988, see section 1001(a) of Pub. L. 100–399, set out as a note under section 2002 of this title. § 2149. Lending limits The Farm Credit Administration may not es- tablish lending limits for the consolidated bank with respect to any loans or borrowers that are more restrictive than the combined lending lim- its that were previously established by the Farm Credit Administration for the constituent banks