
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 12USC2016]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
                     SUBCHAPTER I--FARM CREDIT BANKS
 
Sec. 2016. Interest rates and other charges


(a) In general

    Loans and discounts made by a Farm Credit Bank shall bear such rate 
or rates of interest or discount, and be on such terms and conditions, 
as may be determined by the board of directors of the bank from time to 
time.

(b) Setting rates and charges

    In setting rates and charges, it shall be the objective to provide 
the types of credit needed by eligible borrowers at the lowest 
reasonable costs on a sound business basis taking into consideration the 
cost of money to the bank, necessary reserve and expenses of the bank 
and associations, and providing services to members. The loan documents 
or discounting and financing agreements, may provide for the interest 
rate or rates to vary from time to time during the repayment period of 
the loan or agreement.

(Pub. L. 92-181, title I, Sec. 1.8, as added Pub. L. 100-233, title IV, 
Sec. 401, Jan. 6, 1988, 101 Stat. 1626; amended Pub. L. 100-399, title 
IV, Sec. 401(g), Aug. 17, 1988, 102 Stat. 996.)


                            Prior Provisions

    A prior section 2016, Pub. L. 92-181, title I, Sec. 1.8, Dec. 10, 
1971, 85 Stat. 586; Pub. L. 96-592, title I, Sec. 105, Dec. 24, 1980, 94 
Stat. 3438, related to eligibility, prior to the general amendment of 
this subchapter by Pub. L. 100-233, Sec. 401.


                               Amendments

    1988--Subsec. (a). Pub. L. 100-399 substituted ``such rate or rates 
of interest or discount, and be'' for ``interest at a rate or rates, 
and''.


                    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 section 1001(b) of Pub. L. 100-399, set out as a 
note under section 2002 of this title.
