12 U.S.C. § 3019 — Taxation by State, county, etc., taxing au-

Page 1487 TITLE 12—BANKS AND BANKING § 3020 (d) Assignment of guaranteed loans; contestability of guarantee; criteria for pur- chase by Bank of guaranteed loan in lieu of requiring service by lender Any loan guaranteed under subsection (c) shall be assignable to the extent provided in the contract of guarantee as may be determined by the Bank. The guarantee shall be uncontestable, except for fraud or misrepresentation of which the holder had actual knowledge at the time he acquired the loan. The Bank in lieu of requiring such lender to service such guaranteed loan until final maturity or liquidation, may pur- chase the loan for the balance of the principal and accrued interest thereon without penalty, if it determines that (1) the liquidation of the loan would result in the insolvency of the borrower or deprive the borrower of assets essential to its continued operation, and (2) the loan will be re- payable with revision of the loan rates, terms, or payment periods or other conditions not in- consistent with loans made by the Bank under subsection (a) of this section, which revisions the lender or other holder of such guaranteed loan is unwilling to make. (e) Aggregate amount of commitments to make or guarantee loans As long as any of the class A stock of the Bank is held by the Secretary of the Treasury, the aggregate amount of commitments by the Bank to make or guarantee loans shall not ex- ceed such amounts as may be specified in annual appropriation Acts. (Pub. L. 95–351, title I, § 108, Aug. 20, 1978, 92 Stat. 508; Pub. L. 97–35, title III, §§ 394(b), 396(e), Aug. 13, 1981, 95 Stat. 436, 440; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095.) Editorial Notes AMENDMENTS 1986—Subsec. (c). Pub. L. 99–514 substituted ‘‘Internal Revenue Code of 1986’’ for ‘‘Internal Revenue Code of 1954’’, which for purposes of codification was translated as ‘‘title 26’’ thus requiring no change in text. 1981—Subsec. (a). Pub. L. 97–35, § 394(b), substituted ‘‘1985’’ for ‘‘1983’’. Subsec. (b). Pub. L. 97–35, § 396(e), struck out provi- sions relating to proceeds from class A and class B stock. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1981 AMENDMENT Amendment by section 396(e) of Pub. L. 97–35 effective on day after Final Government Equity Redemption Date (Dec. 31, 1981), see section 396(i) of Pub. L. 97–35, set out as a note under section 3011 of this title. § 3019. Taxation by State, county, etc., taxing au- thority; Federal tax status (a) The Bank, including its franchise, capital, reserves, surplus, mortgages, or other security holdings and income shall be exempt from tax- ation now or hereafter imposed by any State, county, municipality, or local taxing authority, but any real property held by the Bank shall be subject to any State, county, municipal, or local taxation to the same extent according to its value as other real property is taxed. (b) Notwithstanding any other provision of law, for purposes of subchapter T of chapter 1 of title 26— (1) the Bank shall be treated as a corpora- tion operating on the cooperative basis within the meaning of section 1381(a)(2) of title 26; (2) the term ‘‘patronage dividend’’, as de- fined in section 1388(a) of title 26 includes, only as such section applies to the Bank, any patronage refunds in the form of class B or class C stock or allocated surplus that are dis- tributed or set aside by the Bank pursuant to section 3014(i) of this title; (3) the terms ‘‘written notice of allocation’’ and ‘‘qualified written notices of allocation’’, as defined in sections 1388(b) and (c) of title 26, include (to the extent of par value), only as such sections apply to the Bank, any class B or class C stock distributed by the Bank pur- suant to section 3014(i) of this title and shall also include any allocated surplus set aside by the Bank pursuant to section 3014(i) of this title; (4) patrons of the Bank shall be deemed to have consented under section 1388(c)(2) of title 26 to the inclusion in their incomes of any qualified written notices of allocation received by such patrons from the Bank; and (5) any amounts required to be included in the incomes of patrons of the Bank with re- spect to class B or class C stock or allocated surplus shall be treated as earnings from busi- ness done by such patrons of the Bank with or for their own patrons. (Pub. L. 95–351, title I, § 109, Aug. 20, 1978, 92 Stat. 509; Pub. L. 97–35, title III, § 392(a), Aug. 13, 1981, 95 Stat. 434; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095.) Editorial Notes REFERENCES IN TEXT Subchapter T of chapter 1 of title 26, referred to in subsec. (b), is set out as section 1381 et seq. of Title 26, Internal Revenue Code. AMENDMENTS 1986—Subsec. (b). Pub. L. 99–514 substituted ‘‘Internal Revenue Code of 1986’’ for ‘‘Internal Revenue Code of 1954’’, which for purposes of codification was translated as ‘‘title 26’’ thus requiring no change in text. 1981—Pub. L. 97–35 designated existing provisions as subsec. (a), struck out applicability of Final Govern- ment Equity Redemption Date to provisions, and added subsec. (b). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1981 AMENDMENT Pub. L. 97–35, title III, § 392(b), Aug. 13, 1981, 95 Stat. 435, provided that: ‘‘The amendments made by sub- section (a) [amending this section] shall take effect on the day after the Final Government Equity Redemp- tion Date [Dec. 31, 1981].’’ For definition of ‘‘Final Gov- ernment Equity Redemption Date’’, see section 396(a) of Pub. L. 97–35, set out as a note under section 3012 of this title. § 3020. Quarters and space for principal and other offices Until the Final Government Equity Redemp- tion Date, space for the principal office and any branch offices of the Bank shall be provided by the General Services Administration. There- after, the Bank may lease, construct, or own