12 U.S.C. § 2279b — Transfer of lending authority

Page 1408 TITLE 12—BANKS AND BANKING § 2279a–2 amended Pub. L. 100–399, title IV, § 408(c), Aug. 17, 1988, 102 Stat. 1001.) Editorial Notes AMENDMENTS 1988—Pub. L. 100–399 struck out ‘‘for the district’’ in section catchline and amended text generally, revising and restating as a single unlettered paragraph provi- sions of former subsecs. (a) and (b). 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. § 2279a–2. Powers of merged banks (a) In general Except as otherwise provided in this sub- chapter, a merged bank shall have all of the powers granted to, and shall be subject to all of the obligations imposed on, any of the con- stituent entities of the merged bank. (b) Regulations The Farm Credit Administration shall issue regulations that establish the manner in which the powers and obligations of the banks that form the merged bank are consolidated, and to the extent necessary, reconciled in the merged bank. (Pub. L. 92–181, title VII, § 7.2, as added Pub. L. 100–233, title IV, § 416, Jan. 6, 1988, 101 Stat. 1645.) § 2279a–3. Capitalization In accordance with section 2154a of this title, each merged bank shall provide, through bylaws and subject to Farm Credit Administration reg- ulations, 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 VII, § 7.3, as added Pub. L. 100–399, title IV, § 408(d), Aug. 17, 1988, 102 Stat. 1001.) Editorial Notes PRIOR PROVISIONS A prior section 2279a–3, Pub. L. 92–181, title VII, § 7.3, as added Pub. L. 100–233, title IV, § 416, Jan. 6, 1988, 101 Stat. 1645, related to issuance of shares of capital stock, prior to repeal by Pub. L. 100–399, title IV, § 408(d), Aug. 17, 1988, 102 Stat. 1001. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective as if enacted immediately after en- actment of Pub. L. 100–233, which was approved Jan. 6, 1988, see section 1001(a) of Pub. L. 100–399, set out as an Effective Date of 1988 Amendment note under section 2002 of this title. § 2279a–4. Repealed. Pub. L. 100–399, title IV, § 408(d), Aug. 17, 1988, 102 Stat. 1001 Section, Pub. L. 92–181, title VII, § 7.4, as added Pub. L. 100–233, title IV, § 416, Jan. 6, 1988, 101 Stat. 1646, re- lated to earnings, reserves, and distributions with re- gard to merged banks. See section 2279a–3 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective as if repealing provisions had been 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 an Effective Date of 1988 Amendment note under section 2002 of this title. § 2279a–5. Transferred Editorial Notes CODIFICATION Section, Pub. L. 92–181, title VII, § 7.5, as added Pub. L. 100–233, title IV, § 416, Jan. 6, 1988, 101 Stat. 1646, which required reports by merged banks for coopera- tives, was renumbered section 3.29 of title III of Pub. L. 92–181 by Pub. L. 100–399, title IV, § 408(e), Aug. 17, 1988, 102 Stat. 1001, and was classified to section 2149a of this title, prior to repeal by Pub. L. 115–334, title V, § 5411(16), Dec. 20, 2018, 132 Stat. 4680. PART B—MERGERS, TRANSFERS OF ASSETS, AND POWERS OF ASSOCIATIONS WITHIN A DISTRICT SUBPART 1—TRANSFERS BY FEDERAL LAND BANKS TO FEDERAL LAND BANK ASSOCIATIONS § 2279b. Transfer of lending authority (a) Voluntary transfers A Federal land bank or a merged bank having a Federal land bank as one of its constituents, may transfer to a Federal land bank association, and the association may assume, the authority of the transferring bank in the territorial area served by the association, to make and partici- pate in long-term real estate mortgage loans under this chapter if the transfer is approved by— (1) the Farm Credit Administration Board; (2) the Board of Directors of both institu- tions; and (3) a majority of the stockholders of the bank and of the association, in accordance with the voting provisions of sections 2279a and 2279c–1 of this title, respectively. (b) Direct loans and financial assistance After a transfer described in subsection (a) or (d)— (1) the Federal land bank association shall possess all of the direct long-term real estate mortgage loan authority, formerly possessed by the transferring bank, in the territory served by the association; and (2) the bank may provide and extend finan- cial assistance to, and discount for, or pur- chase from, the transferee Federal land bank association any note, draft, or other obliga- tion with the endorsement or guarantee of the association, the proceeds of which have been advanced to persons eligible and for purposes of financing by the association under sub- section (a). (c) Regulations The Farm Credit Administration shall issue regulations that establish the manner in which the powers and obligations of the banks that Page 1409 TITLE 12—BANKS AND BANKING § 2279c make transfers are consolidated and, to the ex- tent necessary, reconciled in the association re- ferred to in subsection (a). (d) Mandatory transfer On the merger of one or more production cred- it associations with one or more Federal land bank associations, the bank supervising the Federal land bank association shall transfer all of the direct lending authority of the bank in the territory served by such Federal land bank association to such merged association. (Pub. L. 92–181, title VII, § 7.6, formerly §§ 7.6, 7.7, as added Pub. L. 100–233, title IV, § 416, Jan. 6, 1988, 101 Stat. 1647; amended Pub. L. 100–399, title IV, § 408(f)–(j), Aug. 17, 1988, 102 Stat. 1001, 1002.) Editorial Notes CODIFICATION Pub. L. 100–399, § 408(j), transferred section 7.7 of Pub. L. 92–181, which was classified to section 2279c of this title, to subsec. (d) of this section. AMENDMENTS 1988—Subsec. (a). Pub. L. 100–399, § 408(f), substituted ‘‘Voluntary transfers’’ for ‘‘Assignments’’ as subsection heading, and in text substituted ‘‘may transfer’’ for ‘‘may assign’’, ‘‘this chapter’’ for ‘‘sections 2014 through 2017 of this title’’, and ‘‘transfer is approved’’ for ‘‘assignment is approved’’ in introductory provi- sions, and ‘‘sections 2279a and 2279c–1 of this title, re- spectively’’ for ‘‘sections 2279a and 2279b of this title’’ in par. (3). Subsec. (b). Pub. L. 100–399, § 408(g), substituted ‘‘a transfer described in subsection (a) or (d)’’ for ‘‘an as- signment described in subsection (a)’’ in introductory provisions and ‘‘the bank may provide’’ for ‘‘the Fed- eral land bank may provide’’ in par. (2). Subsec. (c). Pub. L. 100–399, § 408(h), struck out ‘‘as- signments or’’ before ‘‘transfers are consolidated’’ and struck out second sentence, which provided that, fol- lowing a transfer or assignment under subsection (a) of this section, the provisions of section 2154a of this title were to be applicable to the association. Subsec. (d). Pub. L. 100–399, § 408(i), (j), transferred section 2279c of this title to subsec. (d) of this section, substituted heading for former section heading, and amended text generally. Prior to amendment, text read as follows: ‘‘On the merger of one or more production credit associations with one or more Federal land bank associations, the bank supervising the Federal land bank association shall transfer all of its direct lending authority of the bank to such association under section 2279c–1 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. § 2279c. Equalization of loan-making powers of certain district associations (a) Equalization of loan-making powers (1) In general (A) Federal land bank associations Subject to paragraph (2), any association that owns a Federal land bank association authorized as of January 1, 2007, to make long-term loans under subchapter I in its chartered territory within the geographic area described in subsection (b) may make short- and intermediate-term loans and oth- erwise operate as a production credit asso- ciation under subchapter II within that same chartered territory. (B) Production credit associations Subject to paragraph (2), any association that under its charter has subchapter I lend- ing authority and that owns a production credit association authorized as of January 1, 2007, to make short- and intermediate- term loans under subchapter II in the geo- graphic area described in subsection (b) may make long-term loans and otherwise oper- ate, directly or through a subsidiary associa- tion, as a Federal land bank association or Federal land credit association under sub- chapter I in the geographic area. (C) Farm Credit Bank Notwithstanding section 2252(a) of this title, the Farm Credit Bank with which any association had a written financing agree- ment as of January 1, 2007, may make loans and extend other comparable financial as- sistance with respect to, and may purchase, any loans made under the new authority provided under subparagraph (A) or (B) by an association exercising such authority. (2) Required approvals An association may exercise the additional authority provided for in paragraph (1) only after the exercise of the authority is approved by— (A) the board of directors of the associa- tion; and (B) a majority of the voting stockholders of the association (or, if the association is a subsidiary of another association, the voting stockholders of the parent association) vot- ing, in person or by proxy, at a duly author- ized meeting of stockholders in accordance with the process described in section 2279e of this title. (b) Applicability This section applies only to associations the chartered territory of which was within the geo- graphic area served by the Federal intermediate credit bank immediately prior to its merger with a Farm Credit Bank under section 410(e)(1) of the Agricultural Credit Act of 1987 (12 U.S.C. 2011 note; Public Law 100–233). (Pub. L. 92–181, title VII, § 7.7, as added Pub. L. 110–234, title V, § 5407(a), May 22, 2008, 122 Stat. 1159, and Pub. L. 110–246, § 4(a), title V, § 5407(a), June 18, 2008, 122 Stat. 1664, 1921.) Editorial Notes CODIFICATION Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246. PRIOR PROVISIONS A prior section 2279c, Pub. L. 92–181, title VII, § 7.7, as added Pub. L. 100–233, title IV, § 416, Jan. 6, 1988, 101 Stat. 1647; amended Pub. L. 100–399, title IV, § 408(i), (j), Aug. 17, 1988, 102 Stat. 1002, related to mergers of unlike associations, prior to renumbering as section 7.6(d) of