12 U.S.C. § 2075 — Short- and intermediate-term loans; par-

Page 1304 TITLE 12—BANKS AND BANKING § 2075 surplus accounts, the minimum aggregate amount of which shall be prescribed by the Farm Credit Bank.’’ 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. § 2075. Short- and intermediate-term loans; par- ticipation; other financial assistance; terms; conditions; interest; security (a) Short- and intermediate-term loans Each production credit association, under standards prescribed by the board of directors of the Farm Credit Bank of the district, may make, guarantee, or participate with other lend- ers in short- and intermediate-term loans and other similar financial assistance to— (1) bona fide farmers and ranchers and the producers or harvesters of aquatic products, for agricultural or aquatic purposes and other requirements of such borrowers, including fi- nancing for basic processing and marketing di- rectly related to the operations of the bor- rower and those of other eligible farmers, ranchers, and producers or harvesters of aquatic products, except that the operations of the borrower shall supply some portion of the total processing or marketing for which fi- nancing is extended, except that the aggregate of the financing provided by any association for basic processing and marketing directly re- lated to the operations of farmers, ranchers, and producers or harvesters of aquatic prod- ucts, if the operations of the applicant supply less than 20 percent of the total processing or marketing for which financing is extended, shall not exceed 15 percent of the total of all outstanding loans of all associations in the district at the end of its preceding fiscal year; (2) rural residents for housing financing in rural areas, under regulations of the Farm Credit Administration; and (3) persons furnishing to farmers and ranch- ers farm-related services directly related to their on-farm operating needs. (b) Rural housing (1) In general Rural housing financed under this part shall be for single-family, moderate-priced dwell- ings and the appurtenances of such not incon- sistent with the general quality and standards of housing existing in, or planned or rec- ommended for, the rural area where it is lo- cated. (2) Limitation The aggregate of such housing loans in an association to persons other than farmers or ranchers shall not exceed 15 percent of the outstanding loans at the end of its preceding fiscal year except on prior approval by the Farm Credit Bank of the district. The aggre- gate of such housing loans in any farm credit district shall not exceed 15 percent of the out- standing loans of all associations in the dis- trict at the end of the preceding fiscal year. (3) Rural areas For rural housing purposes under this sec- tion the term ‘‘rural areas’’ shall not be de- fined to include any city or village having a population in excess of 2,500 inhabitants. (4) Equipment Each association may own and lease, or lease with option to purchase, to stockholders of the association equipment needed in the op- erations of the stockholder. (c) Interest rates and charges (1) In general Loans authorized in subsection (a) shall bear such rate or rates of interest as are deter- mined under standards prescribed by the board of the bank subject to the provisions of sec- tion 2205 of this title, and shall be made upon such terms, conditions, and upon such secu- rity, if any, as shall be authorized in such standards. (2) Setting of rates In setting rates and charges, it shall be the objective to provide the types of credit needed by eligible borrowers, at the lowest reasonable cost on a sound business basis, taking into ac- count the cost of money to the association, necessary reserves and expenses of the associa- tion, and services provided to borrowers and members. (3) Varying rates The loan documents may provide for the in- terest rate or rates to vary from time to time during the repayment period of the loan in ac- cordance with the rate or rates currently being charged by the association. (4) Prior approval Such standards may require prior approval of the bank on certain classes of loans, and may authorize a continuing commitment to a borrower of a line of credit. (Pub. L. 92–181, title II, § 2.4, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1632; amended Pub. L. 100–399, title IV, § 401(p), (q), Aug. 17, 1988, 102 Stat. 997; Pub. L. 101–624, title XVIII, § 1832(b), Nov. 28, 1990, 104 Stat. 3832; Pub. L. 115–334, title V, § 5411(3), Dec. 20, 2018, 132 Stat. 4679.) Editorial Notes PRIOR PROVISIONS A prior section 2075, Pub. L. 92–181, title II, § 2.4, Dec. 10, 1971, 85 Stat. 594; Pub. L. 95–443, Oct. 10, 1978, 92 Stat. 1066; Pub. L. 96–592, title II, § 204, Dec. 24, 1980, 94 Stat. 3441; Pub. L. 99–509, title I, § 1033(b), Oct. 21, 1986, 100 Stat. 1877, related to terms, prior to the general amend- ment of this subchapter by Pub. L. 100–233, § 401. AMENDMENTS 2018—Subsec. (d). Pub. L. 115–334 struck out subsec. (d) which described a special rule for providing credit and technical assistance in a district containing only two production credit associations. 1990—Subsec. (a)(1). Pub. L. 101–624 substituted ‘‘some portion of the total processing or marketing for which financing is extended, except that the aggregate of the financing provided by any association for basic proc- essing and marketing directly related to the operations of farmers, ranchers, and producers or harvesters of aquatic products, if the operations of the applicant sup- ply less than 20 percent of the total processing or mar- keting for which financing is extended, shall not exceed 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.