12 U.S.C. § 2091 — Organizations; articles; charters; powers

Page 1306 TITLE 12—BANKS AND BANKING § 2091 § 2091. Organizations; articles; charters; powers of the Farm Credit Administration (a) Charter Each Federal land bank association shall con- tinue as a federally chartered instrumentality of the United States. (b) Organization (1) In general A Federal land bank association may be or- ganized by any group of 10 or more persons de- siring to borrow money from a Farm Credit Bank under section 2015(a) of this title, includ- ing persons to whom the Farm Credit Bank has made a loan directly or through an agent and has taken as security real estate located in the territory proposed to be served by the association. (2) Articles of association (A) Description of territory The articles of association shall describe the territory within which the association proposes to carry on its operations. (B) Submission to FCB Proposed articles shall be forwarded to the Farm Credit Bank for the district, accom- panied by an agreement to subscribe on be- half of the association for stock in accord- ance with the bylaws of the Farm Credit Bank. (C) Stock purchase Association stock may be paid for by sur- rendering for cancellation stock in the bank held by a borrower and the issuance of an equivalent amount of stock to such borrower in the association. (D) Statement The articles shall be accompanied by a statement signed by each of the members of the proposed association establishing— (i) the individual’s eligibility and re- quest for a Farm Credit Bank loan; (ii) that the real estate with respect to which the individual desires the loan for is not being served by another Federal land bank association; and (iii) that the individual is or will become a stockholder in the proposed association. (E) Submission to FCA A copy of the articles of association shall be forwarded to the Farm Credit Adminis- tration with the recommendations of the bank concerning the need for the proposed association in order to adequately serve the credit needs of eligible persons in the pro- posed territory and a statement as to wheth- er or not the territory includes any territory described in the charter of another Federal land bank association. (3) Denials of charters The Farm Credit Administration for good cause shown may deny the charter applied for. (4) Approval of articles On the approval of the proposed articles by the Farm Credit Administration and the issuance of such charter, the association shall become as of such date a federally chartered body corporate and an instrumentality of the United States. (c) FCA authority on organization The Farm Credit Administration shall have power, in the terms of the charter, under rules and regulations prescribed by the Farm Credit Administration— (1) to provide for the organization of the as- sociation; (2) to provide for the initial amount of stock of the association; (3) to provide for the territory within which the association may carry on its operations; and (4) to approve amendments to the charter of such association. (Pub. L. 92–181, title II, § 2.10, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1634; amended Pub. L. 100–399, title IV, § 401(s), (t), Aug. 17, 1988, 102 Stat. 998.) Editorial Notes PRIOR PROVISIONS A prior section 2091, Pub. L. 92–181, title II, § 2.10, Dec. 10, 1971, 85 Stat. 597; Pub. L. 96–592, title II, § 207, Dec. 24, 1980, 94 Stat. 3442; Pub. L. 99–205, title II, § 205(e)(10), Dec. 23, 1985, 99 Stat. 1704; Pub. L. 100–233, title VIII, §§ 802(l), 805(g), Jan. 6, 1988, 101 Stat. 1711, 1715, related to organization and charters of production credit asso- ciations, prior to the general amendment of this sub- chapter by Pub. L. 100–233, § 401. AMENDMENTS 1988—Subsec. (b)(1). Pub. L. 100–399, § 401(s)(1), in- serted ‘‘under section 2015(a) of this title’’ after ‘‘a Farm Credit Bank’’. Subsec. (b)(2)(D)(i). Pub. L. 100–399, § 401(s)(2), amend- ed cl. (i) generally. Prior to amendment, cl. (i) read as follows: ‘‘the individual’s eligibility for, and request or need of the individual of a Farm Credit Bank loan;’’. Subsec. (c). Pub. L. 100–399, § 401(t), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: ‘‘The Farm Credit Administration shall have power, in the terms of the charter, under rules and reg- ulations prescribed by the Farm Credit Administration or by approving the bylaws of the association, to pro- vide for the— ‘‘(1) organization of the association; ‘‘(2) the initial amount of stock of such association; ‘‘(3) the territory within which the operations of the association may be carried on; and ‘‘(4) to direct at any time changes in the charter of such association as the Farm Credit Administration finds necessary in accomplishing the purposes of 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 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. § 2092. Board of directors Each Federal land bank association shall elect from its voting shareholders a board of directors