
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: 12USC2153]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
     SUBCHAPTER IV--PROVISIONS APPLICABLE TO TWO OR MORE CLASSES OF 
                       INSTITUTIONS OF THE SYSTEM
 
                             Part A--Funding
 
Sec. 2153. Power to borrow; issuance of notes, bonds, 
        debentures, and other obligations
        
    Each of the banks of the System, in order to obtain funds for its 
authorized purposes, shall have power, subject to regulation by the Farm 
Credit Administration, and subject to the limitations of paragraph (e) 
of this section, to--
    (a) Borrow money from or loan to any other institution of the 
System, borrow from any commercial bank or other lending institution, 
issue its notes or other evidence of debt on its own individual 
responsibility and full faith and credit, and invest its excess funds in 
such sums, at such times, and on such terms and conditions as it may 
determine.
    (b) Issue its own notes, bonds, debentures, or other similar 
obligations, fully collateralized as provided in section 2154(c) of this 
title by the notes, mortgages, and security instruments it holds in the 
performance of its functions under this chapter in such sums, 
maturities, rates of interest, and terms and conditions of each issue as 
it may determine with approval of the Farm Credit Administration.
    (c) Join with any or all banks organized and operating under the 
same subchapter of this chapter in borrowing or in issuance of 
consolidated notes, bonds, debentures, or other obligations as may be 
agreed with approval of the Farm Credit Administration.
    (d) Join with other banks of the System in issuance of System-wide 
notes, bonds, debentures, and other obligations in the manner, form, 
amounts, and on such terms and conditions as may be agreed upon with 
approval of the Farm Credit Administration. Such System-wide issue by 
the participating banks and such participations by each bank shall not 
exceed the limits to which each such bank is subject in the issuance of 
its individual or consolidated obligations and each such issue shall be 
subject to approval of the Farm Credit Administration: Provided, 
however, There shall be no issues of System-wide obligations without the 
concurrence of the boards of directors of each bank and the approval of 
the Farm Credit Administration for such issues shall be conditioned on 
and be evidence of the compliance with this provision.
    (e) No bank or banks shall issue notes, bonds, debentures, or other 
obligations individually or in concert with one or more banks of the 
System other than through the Federal Farm Credit Banks Funding 
Corporation under any provision of this chapter except under subsection 
(a) of this section: Provided, That any bank or banks may issue 
investment bonds or like obligations other than through the Federal Farm 
Credit Banks Funding Corporation if the interest rate is not in excess 
of the interest allowable on savings deposits of commercial banks of 
comparable amounts and maturities under Federal Reserve regulation on 
its member banks.

(Pub. L. 92-181, title IV, Sec. 4.2, Dec. 10, 1971, 85 Stat. 610; Pub. 
L. 99-205, title II, Sec. 205(f)(1), Dec. 23, 1985, 99 Stat. 1705; Pub. 
L. 100-233, title IV, Sec. 418(b), formerly Sec. 415(b), Jan. 6, 1988, 
101 Stat. 1653, renumbered Sec. 418(b), Pub. L. 100-399, title IV, 
Sec. 409(a), Aug. 17, 1988, 102 Stat. 1003; Pub. L. 100-399, title II, 
Sec. 203(e), Aug. 17, 1988, 102 Stat. 993.)


                               Amendments

    1988--Subsec. (d). Pub. L. 100-233 substituted ``the boards of 
directors of each bank'' for ``the boards of directors of each of the 12 
districts and the Central Bank for Cooperatives''.
    Subsec. (e). Pub. L. 100-399, Sec. 203(e), substituted ``System 
other than through the'' for ``System other than through their'', and 
substituted ``Federal Farm Credit Banks Funding Corporation'' for 
``fiscal agent'' in two places.
    1985--Pub. L. 99-205 substituted ``regulation by'' for ``supervision 
of'' in provision preceding subsec. (a).
    Subsec. (b). Pub. L. 99-205 substituted references to section 
``2154(c)'' for ``2154(b)'' and ``Farm Credit Administration'' for 
``Governor''.
    Subsecs. (c), (d). Pub. L. 99-205 substituted ``Farm Credit 
Administration'' for ``Governor'' wherever appearing.


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-399 effective as if enacted immediately 
after enactment of Pub. L. 100-233, which was approved Jan. 6, 1988, see 
section 1001(a) of Pub. L. 100-399, set out as a note under section 2002 
of this title.


                    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 sections 2244, 2252, 2277a, 2277a-1 
of this title.
