12 U.S.C. § 2077 — Taxation

Page 1305 TITLE 12—BANKS AND BANKING § 2077 15 percent of the total of all outstanding loans of all as- sociations in the district at the end of its preceding fis- cal year’’ for ‘‘at least 20 percent, or such larger per- cent as is required by the supervising bank under regu- lations of the Farm Credit Administration, of the total processing or marketing for which financing is ex- tended’’. 1988—Subsec. (b)(1). Pub. L. 100–399, § 401(p), sub- stituted ‘‘this part’’ for ‘‘this subchapter’’ and sub- stituted ‘‘or planned’’ for ‘‘planned’’. Subsec. (d). Pub. L. 100–399, § 401(q), added subsec. (d). 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 sec- tion 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. § 2076. Other services Each production credit association may pro- vide technical assistance to borrowers, appli- cants, and members and may make available to them at their option such financial related serv- ices appropriate to their on-farm and aquatic operations as is determined feasible by the board of directors of each Farm Credit Bank, under regulations prescribed by the Farm Credit Administration. (Pub. L. 92–181, title II, § 2.5, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1633.) Editorial Notes PRIOR PROVISIONS A prior section 2076, Pub. L. 92–181, title II, § 2.5, Dec. 10, 1971, 85 Stat. 595; Pub. L. 96–592, title II, § 205, Dec. 24, 1980, 94 Stat. 3442; Pub. L. 100–233, title III, § 305, Jan. 6, 1988, 101 Stat. 1621, related to services related to bor- rowers’ operations, prior to the general amendment of this subchapter by Pub. L. 100–233, § 401. Statutory Notes and Related Subsidiaries 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. § 2076a. Liens on stock Except with regard to stock or participation certificates held by other Farm Credit System institutions, each production credit association shall have a first lien on stock and participation certificates the association issues, on allocated surplus, and on investments in equity reserve, for any indebtedness of the holder of the capital investments and, in the case of equity reserves, for charges for association losses in excess of re- serves and surpluses. (Pub. L. 92–181, title II, § 2.6, as added Pub. L. 101–624, title XVIII, § 1833(2), Nov. 28, 1990, 104 Stat. 3832.) Editorial Notes PRIOR PROVISIONS A prior section 2.6 of Pub. L. 92–181 was renumbered section 2.7 and is classified to section 2077 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Jan. 7, 1988, see section 1861(d) of Pub. L. 101–624, set out as an Effective Date of 1990 Amendment note under section 2001 of Title 7, Agri- culture. § 2077. Taxation Each production credit association and its ob- ligations are instrumentalities of the United States and as such any and all notes, deben- tures, and other obligations issued by such asso- ciations shall be exempt, both as to principal and interest, from all taxation (except surtaxes, estate, inheritance, and gift taxes) now or here- after imposed by the United States or any State, territorial, or local taxing authority, except that interest on such obligations shall be sub- ject to Federal income taxation in the hands of the holder. (Pub. L. 92–181, title II, § 2.7, formerly § 2.6, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1633; amended Pub. L. 100–399, title IV, § 401(r), Aug. 17, 1988, 102 Stat. 998; renumbered § 2.7, Pub. L. 101–624, title XVIII, § 1833(1), Nov. 28, 1990, 104 Stat. 3832.) Editorial Notes PRIOR PROVISIONS A prior section 2077, Pub. L. 92–181, title II, § 2.6, Dec. 10, 1971, 85 Stat. 595; Pub. L. 96–592, title II, § 206, Dec. 24, 1980, 94 Stat. 3442; Pub. L. 99–205, title II, § 205(e)(7), (8), Dec. 23, 1985, 99 Stat. 1704; Pub. L. 100–233, title VIII, §§ 802(k), 805(f), Jan. 6, 1988, 101 Stat. 1711, 1715, related to net earnings, prior to the general amendment of this subchapter by Pub. L. 100–233, § 401. A prior section 2078, Pub. L. 92–181, title II, § 2.7, Dec. 10, 1971, 85 Stat. 597; Pub. L. 99–205, title II, § 205(e)(9), Dec. 23, 1985, 99 Stat. 1704, related to distribution of as- sets on liquidation, prior to the general amendment of this subchapter by Pub. L. 100–233, § 401. A prior section 2079, Pub. L. 92–181, title II, § 2.8, Dec. 10, 1971, 85 Stat. 597; Pub. L. 100–399, title IX, § 901(a), Aug. 17, 1988, 102 Stat. 1007, related to taxation, prior to the general amendment of this subchapter by Pub. L. 100–233, § 401. AMENDMENTS 1988—Pub. L. 100–399 substituted ‘‘interest,’’ for ‘‘in- terest’’ and inserted ‘‘, except that interest on such ob- ligations shall be subject to Federal income taxation in the hands of the holder’’. 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 sec- tion 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. PART B—FEDERAL LAND BANK ASSOCIATIONS Editorial Notes CODIFICATION Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1634, substituted ‘‘Federal Land Bank Associations’’ for ‘‘Production Credit Associations’’ as part B heading.