
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: 12USC2098]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
                 SUBCHAPTER II--FARM CREDIT ASSOCIATIONS
 
                 Part B--Federal Land Bank Associations
 
Sec. 2098. Taxation

    Each Federal land bank association and the capital, reserves, and 
surplus thereof, and the income derived therefrom, shall be exempt from 
Federal, State, municipal, and local taxation, except taxes on real 
estate held by a Federal land bank association to the same extent, 
according to its value, as other similar property held by other persons 
is taxed. The mortgages held by the Federal land bank associations and 
the notes, bonds, debentures, and other obligations issued by the 
associations shall be considered and held to be instrumentalities of the 
United States and, as such, they and the income therefrom shall be 
exempt from all Federal, State, municipal, and local taxation, other 
than Federal income tax liability of the holder thereof under the Public 
Debt Act of 1941 (31 U.S.C. 3124).

(Pub. L. 92-181, title II, Sec. 2.16, formerly Sec. 2.17, as added Pub. 
L. 100-233, title IV, Sec. 401, Jan. 6, 1988, 101 Stat. 1637; renumbered 
Sec. 2.16 and amended Pub. L. 100-399, title IV, Sec. 401(w), (x), Aug. 
17, 1988, 102 Stat. 999.)


                            Prior Provisions

    A prior section 2098, Pub. L. 92-181, title II, Sec. 2.17, Dec. 10, 
1971, 85 Stat. 602; Pub. L. 99-205, title II, Sec. 205(e)(16), Dec. 23, 
1985, 99 Stat. 1705; Pub. L. 100-233, title VIII, Sec. 805(j), Jan. 6, 
1988, 101 Stat. 1715, related to taxation, prior to the general 
amendment of this subchapter by Pub. L. 100-233, Sec. 401.
    A prior section 2.16 of Pub. L. 92-181 was renumbered section 2.15 
and is classified to section 2097 of this title.


                               Amendments

    1988--Pub. L. 100-399, Sec. 401(x), substituted ``derived therefrom, 
shall'' for ``derived therefrom shall'', ``by the associations'' for 
``by the banks'', and ``3124'' for ``742(a)''.


                    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.
