
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: 12USC2091]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
                 SUBCHAPTER II--FARM CREDIT ASSOCIATIONS
 
                 Part B--Federal Land Bank Associations
 
Sec. 2091. Organizations; articles; charters; powers of the Farm 
        Credit Administration
        

(a) Charter

    Each Federal land bank association shall continue as a federally 
chartered instrumentality of the United States.

(b) Organization

                           (1) In general

        A Federal land bank association may be organized by any group of 
    10 or more persons desiring to borrow money from a Farm Credit Bank 
    under section 2015(a) of this title, including persons to whom the 
    Farm Credit Bank has made a loan directly or through an agent and 
    has taken as security real estate located in the territory proposed 
    to be served by the association.

                     (2) Articles of association

        (A) Description of territory

            The articles of association shall describe the territory 
        within which the association proposes to carry on its 
        operations.

        (B) Submission to FCB

            Proposed articles shall be forwarded to the Farm Credit Bank 
        for the district, accompanied by an agreement to subscribe on 
        behalf of the association for stock in accordance with the 
        bylaws of the Farm Credit Bank.

        (C) Stock purchase

            Association stock may be paid for by surrendering for 
        cancellation stock in the bank held by a borrower and the 
        issuance of an equivalent amount of stock to such borrower in 
        the association.

        (D) Statement

            The articles shall be accompanied by a statement signed by 
        each of the members of the proposed association establishing--
                (i) the individual's eligibility and request for a Farm 
            Credit Bank loan;
                (ii) that the real estate with respect to which the 
            individual desires the loan for is not being served by 
            another Federal land bank association; and
                (iii) that the individual is or will become a 
            stockholder in the proposed association.

        (E) Submission to FCA

            A copy of the articles of association shall be forwarded to 
        the Farm Credit Administration with the recommendations of the 
        bank concerning the need for the proposed association in order 
        to adequately serve the credit needs of eligible persons in the 
        proposed territory and a statement as to whether or not the 
        territory includes any territory described in the charter of 
        another Federal land bank association.

                       (3) Denials of charters

        The Farm Credit Administration for good cause shown may deny the 
    charter applied for.

                      (4) Approval of articles

        On the approval of the proposed articles by the Farm Credit 
    Administration and the issuance of such charter, the association 
    shall become as of such date a federally chartered body corporate 
    and an instrumentality of the United States.

(c) FCA authority on organization

    The Farm Credit Administration shall have power, in the terms of the 
charter, under rules and regulations prescribed by the Farm Credit 
Administration--
        (1) to provide for the organization of the association;
        (2) to provide for the initial amount of stock of the 
    association;
        (3) to provide for the territory within which the association 
    may carry on its operations; and
        (4) to approve amendments to the charter of such association.

(Pub. L. 92-181, title II, Sec. 2.10, as added Pub. L. 100-233, title 
IV, Sec. 401, Jan. 6, 1988, 101 Stat. 1634; amended Pub. L. 100-399, 
title IV, Sec. 401(s), (t), Aug. 17, 1988, 102 Stat. 998.)


                            Prior Provisions

    A prior section 2091, Pub. L. 92-181, title II, Sec. 2.10, Dec. 10, 
1971, 85 Stat. 597; Pub. L. 96-592, title II, Sec. 207, Dec. 24, 1980, 
94 Stat. 3442; Pub. L. 99-205, title II, Sec. 205(e)(10), Dec. 23, 1985, 
99 Stat. 1704; Pub. L. 100-233, title VIII, Secs. 802(l), 805(g), Jan. 
6, 1988, 101 Stat. 1711, 1715, related to organization and charters of 
production credit associations, prior to the general amendment of this 
subchapter by Pub. L. 100-233, Sec. 401.


                               Amendments

    1988--Subsec. (b)(1). Pub. L. 100-399, Sec. 401(s)(1), inserted 
``under section 2015(a) of this title'' after ``a Farm Credit Bank''.
    Subsec. (b)(2)(D)(i). Pub. L. 100-399, Sec. 401(s)(2), amended cl. 
(i) generally. Prior to amendment, cl. (i) read as follows: ``the 
individual's eligibility for, and request or need of the individual of a 
Farm Credit Bank loan;''.
    Subsec. (c). Pub. L. 100-399, Sec. 401(t), amended subsec. (c) 
generally. Prior to amendment, subsec. (c) read as follows: ``The Farm 
Credit Administration shall have power, in the terms of the charter, 
under rules and regulations prescribed by the Farm Credit Administration 
or by approving the bylaws of the association, to provide for the--
        ``(1) organization of the association;
        ``(2) the initial amount of stock of such association;
        ``(3) the territory within which the operations of the 
    association may be carried on; and
        ``(4) to direct at any time changes in the charter of such 
    association as the Farm Credit Administration finds necessary in 
    accomplishing the purposes of this chapter.''


                    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.
