12 U.S.C. § 2134 — Taxation

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