
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 12USC2077]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
                 SUBCHAPTER II--FARM CREDIT ASSOCIATIONS
 
                 Part A--Production Credit Associations
 
Sec. 2077. Taxation

    Each production credit association and its obligations are 
instrumentalities of the United States and as such any and all notes, 
debentures, and other obligations issued by such associations shall be 
exempt, both as to principal and interest, from all taxation (except 
surtaxes, estate, inheritance, and gift taxes) now or hereafter imposed 
by the United States or any State, territorial, or local taxing 
authority, except that interest on such obligations shall be subject to 
Federal income taxation in the hands of the holder.

(Pub. L. 92-181, title II, Sec. 2.7, formerly Sec. 2.6, as added Pub. L. 
100-233, title IV, Sec. 401, Jan. 6, 1988, 101 Stat. 1633; amended Pub. 
L. 100-399, title IV, Sec. 401(r), Aug. 17, 1988, 102 Stat. 998; 
renumbered Sec. 2.7, Pub. L. 101-624, title XVIII, Sec. 1833(1), Nov. 
28, 1990, 104 Stat. 3832.)


                            Prior Provisions

    A prior section 2077, Pub. L. 92-181, title II, Sec. 2.6, Dec. 10, 
1971, 85 Stat. 595; Pub. L. 96-592, title II, Sec. 206, Dec. 24, 1980, 
94 Stat. 3442; Pub. L. 99-205, title II, Sec. 205(e)(7), (8), Dec. 23, 
1985, 99 Stat. 1704; Pub. L. 100-233, title VIII, Secs. 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, Sec. 401.
    A prior section 2078, Pub. L. 92-181, title II, Sec. 2.7, Dec. 10, 
1971, 85 Stat. 597; Pub. L. 99-205, title II, Sec. 205(e)(9), Dec. 23, 
1985, 99 Stat. 1704, related to distribution of assets on liquidation, 
prior to the general amendment of this subchapter by Pub. L. 100-233, 
Sec. 401.
    A prior section 2079, Pub. L. 92-181, title II, Sec. 2.8, Dec. 10, 
1971, 85 Stat. 597; Pub. L. 100-399, title IX, Sec. 901(a), Aug. 17, 
1988, 102 Stat. 1007, related to taxation, prior to the general 
amendment of this subchapter by Pub. L. 100-233, Sec. 401.


                               Amendments

    1988--Pub. L. 100-399 substituted ``interest,'' for ``interest'' and 
inserted ``, except that interest on such obligations shall be subject 
to Federal income taxation in the hands of the holder''.


                    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.

                  Section Referred to in Other Sections

    This section is referred to in section 2214 of this title.
