
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: 12USC2159]

 
                       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. 2159. Purchase and sale of obligations; additional powers

    (a) Each bank of the System may purchase its own obligations and the 
obligations of other banks of the System and may provide for the sale of 
obligations issued by it, consolidated obligations, or Systemwide 
obligations through a fiscal agent or agents, by negotiation, offer, 
bid, syndicate sale, and to deliver such obligations by book entry, wire 
transfer, or such other means as may be appropriate.
    (b) Through December 31, 1992, each bank of the System, in addition 
to purchasing obligations as authorized by this chapter, may, with the 
prior approval of the Farm Credit Administration and subject to such 
conditions as it may establish, (1) reduce the cost of its borrowings by 
doing one or more of the following: (A) contracting with a third party, 
or an entity that is established as a limited purpose System institution 
under section 2211 of this title and that is not to be included in the 
combined financial statements of other System institutions, with respect 
to the payment of interest on the bank's obligations and the obligations 
of other banks incurred before January 1, 1985, in consideration of the 
payment of market interest rates on such obligations, plus a premium, or 
(B) for the period July 1, 1986, through December 31, 1992, capitalizing 
interest costs on obligations incurred before January 1, 1985, in excess 
of the estimated interest costs on an equivalent amount of Farm Credit 
System obligations at prevailing market rates on such obligations of 
similar maturities as of October 21, 1986, or (C) taking other similar 
action; and (2) amortize, over a period of not to exceed 20 years, the 
capitalization of the premium, capitalization of interest expense, or 
like costs of any action taken under clause (1).

(Pub. L. 92-181, title IV, Sec. 4.8, Dec. 10, 1971, 85 Stat. 612; Pub. 
L. 99-509, title I, Sec. 1034, Oct. 21, 1986, 100 Stat. 1878; Pub. L. 
100-233, title II, Sec. 205(a), Jan. 6, 1988, 101 Stat. 1607.)


                               Amendments

    1988--Subsec. (b). Pub. L. 100-233 substituted ``December 31, 1992'' 
for ``December 31, 1988'' in two places.
    1986--Pub. L. 99-509 designated existing provisions as subsec. (a) 
and added subsec. (b).

                  Section Referred to in Other Sections

    This section is referred to in sections 2001, 2254, 2278a-6 of this 
title.
