
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: 12USC2134]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
                 SUBCHAPTER III--BANKS FOR COOPERATIVES
 
                     Part A--Banks for Cooperatives
 
Sec. 2134. Taxation

    Each bank for cooperatives and its obligations are instrumentalities 
of the United States and as such any and all notes, debentures, and 
other obligations issued by such bank 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 III, Sec. 3.13, Dec. 10, 1971, 85 Stat. 608; Pub. 
L. 99-205, title II, Sec. 205(e)(10), Dec. 23, 1985, 99 Stat. 1705; Pub. 
L. 100-233, title VIII, Sec. 805(p), Jan. 6, 1988, 101 Stat. 1716.)


                               Amendments

    1988--Pub. L. 100-233 inserted before period at end ``, except that 
interest on such obligations shall be subject to Federal income taxation 
in the hands of the holder''.
    1985--Pub. L. 99-205 struck out last two sentences relating to 
exemption of banks for cooperatives and their property, franchises, 
capital, reserves, surplus, other funds, and income from Federal and 
non-Federal taxation except for Federal income taxation of interest on 
obligations of such banks and for Federal and non-Federal taxation of 
real and tangible personal property of such banks to same extent as 
similar property is taxed, and making such exemption provisions 
applicable only for any year or part thereof in which stock in such 
banks was held by the Governor of the Farm Credit Administration.


                    Effective Date of 1985 Amendment

    Amendment by Pub. L. 99-205 effective thirty days after Dec. 23, 
1985, see section 401 of Pub. L. 99-205, set out as a note under section 
2001 of this title.

                  Section Referred to in Other Sections

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