
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: 12USC2073]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
                 SUBCHAPTER II--FARM CREDIT ASSOCIATIONS
 
                 Part A--Production Credit Associations
 
Sec. 2073. General corporate powers

    Each production credit association shall be a body corporate and, 
subject to supervision by the Farm Credit Bank for the district and 
regulation by the Farm Credit Administration, shall have the power to--
        (1) have succession until terminated in accordance with this 
    chapter or any other Act of Congress;
        (2) adopt and use a corporate seal;
        (3) make contracts;
        (4) sue and be sued;
        (5) acquire, hold, dispose, and otherwise exercise all of the 
    usual incidents of ownership of real and personal property necessary 
    or convenient to the business of the association;
        (6) operate under the direction of the board of directors of the 
    association in accordance with the provisions of this chapter;
        (7) subscribe to stock of the bank;
        (8) purchase stock of the bank held by other production credit 
    associations and stock of other production credit associations;
        (9) contribute to the capital of the bank or other production 
    credit associations;
        (10) invest funds of the association as may be approved by the 
    Farm Credit Bank under regulations of the Farm Credit Administration 
    and deposit the current funds and securities of such with the Farm 
    Credit Bank, a member bank of the Federal Reserve System, or any 
    bank insured under the Federal Deposit Insurance Corporation, and 
    may pay fees therefor and receive interest thereon as may be agreed;
        (11) buy and sell obligations of or insured by the United States 
    or of any agency thereof or of any banks of the Farm Credit System 
    and buy from and sell to such banks, interests in loans and in other 
    financial assistance extended and nonvoting stock, as may be 
    authorized by the Farm Credit Bank in accordance with regulations of 
    the Farm Credit Administration;
        (12) borrow money from the Farm Credit Bank, and with the 
    approval of such bank, borrow from and issue notes or other 
    obligations to any commercial bank or other financial institution;
        (13) make and participate in loans, accept advance payments, and 
    provide services and other assistance as authorized in this part and 
    charge fees therefor, and when authorized by the bank participate 
    with one or more other Farm Credit System institutions in loans made 
    under this subchapter or other subchapters of this chapter on the 
    basis prescribed in section 2206 of this title;
        (14) endorse and become liable on loans discounted or pledged to 
    the Farm Credit Bank;
        (15) as may be authorized by the Farm Credit Bank in accordance 
    with regulations of the Farm Credit Administration, agree with other 
    Farm Credit System institutions to share loan or other losses, 
    whether to protect against capital impairment or for any other 
    purpose;
        (16) prescribe, by its board of directors, its bylaws that shall 
    be consistent with law, and that shall provide for--
            (A) the classes of its stock and the manner in which such 
        stock shall be issued, transferred, and retired; and
            (B) the manner in which it is to--
                (i) select officers and employees;
                (ii) acquire, hold, and transfer property;
                (iii) conduct general business; and
                (iv) exercise and enjoy the privileges granted to it by 
            law;

        (17) provide by its board of directors for a manager or other 
    chief executive officer, and provide for such other officers or 
    employees as may be necessary, including joint employees as provided 
    in this chapter, define their duties, and require surety bonds or 
    make other provisions against losses occasioned by employees, but no 
    director shall, within one year after the date when such director 
    ceases to be a member of the board, serve as a salaried employee of 
    the association on the board of which he served;
        (18) elect by the board of directors of the association a loan 
    committee with power to approve applications for membership in the 
    association and loans or participations or, with the approval of the 
    bank, delegate the approval of applications for membership and loans 
    or participations within specified limits to other committees or to 
    authorized officers and employees of the association;
        (19) perform any functions delegated to the association by the 
    bank;
        (20) exercise by the board of directors or authorized officers 
    or employees of the association, all such incidental powers as may 
    be necessary or expedient to carry on the business of the 
    association; and
        (21) operate as an originator and become certified as a 
    certified facility under subchapter VIII of this chapter.

(Pub. L. 92-181, title II, Sec. 2.2, as added Pub. L. 100-233, title IV, 
Sec. 401, Jan. 6, 1988, 101 Stat. 1630; amended Pub. L. 100-399, title 
IV, Sec. 401(o), Aug. 17, 1988, 102 Stat. 997.)


                            Prior Provisions

    A prior section 2073, Pub. L. 92-181, title II, Sec. 2.2, Dec. 10, 
1971, 85 Stat. 592; Pub. L. 96-592, title II, Sec. 202, Dec. 24, 1980, 
94 Stat. 3440; Pub. L. 99-205, title II, Sec. 205(e)(2)-(5), title VI, 
Sec. 604, Dec. 23, 1985, 99 Stat. 1704, 1711; Pub. L. 100-233, title 
VIII, Secs. 802(j), 805(e), Jan. 6, 1988, 101 Stat. 1711, 1715, related 
to Federal intermediate credit bank stock, prior to the general 
amendment of this subchapter by Pub. L. 100-233, Sec. 401.


                               Amendments

    1988--Par. (16). Pub. L. 100-399, Sec. 401(o)(1), amended par. (16) 
generally. Prior to amendment, par. (16) read as follows: ``prescribe by 
the board of directors of the association the bylaws not inconsistent 
with law providing for--
        ``(A) the classes of association stock and the manner in which 
    the stock shall be issued, transferred, and retired;
        ``(B) the officers and employees elected or provided for;
        ``(C) the property acquired, held, and transferred by the 
    association; and
        ``(D) the general business conducted, and the privileges granted 
    to the association by law exercised and enjoyed;''.
    Par. (17). Pub. L. 100-399, Sec. 401(o)(2), substituted ``provide by 
its board of directors for'' for ``elect by the board of directors of 
the association'' and ``serve as'' for ``be elected or designated''.
    Par. (21). Pub. L. 100-399, Sec. 401(o)(3)-(5), added par. (21).


                    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.
