
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: 12USC2160]

 
                       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. 2160. Federal Farm Credit Banks Funding Corporation


(a) Establishment

    There is hereby established the Federal Farm Credit Banks Funding 
Corporation (hereinafter in this section referred to as the 
``Corporation''), which shall be an institution of the Farm Credit 
System.

(b) Duties

    The Corporation--
        (1) shall issue, market, and handle the obligations of the banks 
    of the Farm Credit System, and interbank or intersystem flow of 
    funds as may from time to time be required;
        (2) acting for the banks of the Farm Credit System, subject to 
    approval of the Farm Credit Administration, shall determine the 
    amount, maturities, rates of interest, terms, and conditions of 
    participation by the several banks in each issue of joint, 
    consolidated, or System-wide obligations; and
        (3) shall exercise such other powers as were provided to the 
    predecessor Federal Farm Credit Banks Funding Corporation in 
    accordance with its charter issued under section 2211 of this title, 
    in effect immediately before January 6, 1988.

(c) Officers and committees

                           (1) Designation

        The board of directors may designate such officers and 
    committees for such terms and such purposes as may be agreed on by 
    the board.

                     (2) Issuance of obligations

        When appropriate to the board's functions under this section, a 
    committee of the board of directors of the Corporation, or 
    representatives thereof, may act on behalf of the board in 
    connection with the issuance of joint, consolidated, and System-wide 
    obligations.

(d) Board of directors

                           (1) Composition

        The board of directors shall be composed of nine voting members 
    and one nonvoting member, as follows:
            (A) Four voting members shall be current or former directors 
        of the System banks elected by the shareholders of the 
        Corporation.
            (B) Three voting members shall be chief executive officers 
        or presidents of System banks elected by the shareholders of the 
        Corporation.
            (C) Two voting members shall be appointed by the members 
        elected under subparagraphs (A) and (B) after the elected 
        members have received recommendations for such appointments 
        from, and consulted with, the Secretary of the Treasury and the 
        Chairman of the Board of Governors of the Federal Reserve 
        System. The appointed members shall be selected from United 
        States citizens--
                (i) who are not borrowers from, shareholders in, or 
            employees or agents of any System institution, who are not 
            affiliated with the Farm Credit Administration, and who are 
            not actively engaged with a bank or investment organization 
            that is a member of the Corporation's selling group for 
            System-wide securities; and
                (ii) who are experienced or knowledgeable in corporate 
            and public finance, agricultural economics, and financial 
            reporting and disclosure.

            (D) The president of the Corporation shall serve as a 
        nonvoting member of the board.

    In selecting candidates under subparagraphs (A) and (B), due 
    consideration shall be given to choosing individuals knowledgeable 
    in agricultural economics, public and corporate finance, and 
    financial reporting and disclosure.

                   (2) Non-voting representatives

        (A) Assistance Board

            During the period in which the Assistance Board is in 
        existence, the board of directors of the Assistance Board shall 
        designate one of its directors to serve as a non-voting 
        representative to the board of directors of the Corporation.

        (B) Meetings

            The person designated by the Assistance Board under 
        subparagraph (A) may attend and participate in all deliberations 
        of the board of directors of the Corporation.

        (C) Termination of Assistance Board

            After termination of the Assistance Board, neither the 
        Assistance Board nor its successor, the Farm Credit System 
        Insurance Corporation, shall have any representation on the 
        board of directors of the Corporation.

(e) Transitional authority

    Until a majority of the voting members of the board of directors of 
the Corporation is elected, which shall occur as soon as is practicable 
after January 6, 1988--
        (1) the finance committee established under section 2156 \1\ of 
    this title in effect before January 6, 1988, and the fiscal agency 
    established under section 2160 \1\ of this title in effect before 
    January 6, 1988, shall continue to operate as if this section had 
    not been enacted; and
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    \1\ See References in Text note below.
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        (2) the board of directors of the predecessor Federal Farm 
    Credit Banks Funding Corporation shall be the board of directors of 
    the Financial Assistance Corporation.

(f) Succession

                     (1) Assets and liabilities

        The Corporation shall, by operation of law and without any 
    further action by the Farm Credit Administration, the predecessor 
    Federal Farm Credit Banks Funding Corporation (hereinafter referred 
    to in this subsection as ``the predecessor corporation'') chartered 
    under this chapter, or any court, succeed to the assets of and 
    assume all debts, obligations, contracts, and other liabilities of 
    the predecessor corporation, matured or unmatured, accrued, 
    absolute, contingent or otherwise, and whether or not reflected or 
    reserved against on balance sheets, books of account, or records of 
    the predecessor corporation.

                            (2) Contracts

        The existing contractual obligations, security instruments, and 
    title instruments of the predecessor corporation shall, by operation 
    of law and without any further action by the Farm Credit 
    Administration, the predecessor corporation, or any court, become 
    and be converted into obligations, entitlements, and instruments of 
    the Corporation.

                              (3) Stock

        The stock of the predecessor corporation issued before January 
    6, 1988, shall, by operation of law and without any further action 
    by the Farm Credit Administration, the predecessor corporation, or 
    any court, become and be converted into stock of the Corporation 
    established by this section.

                            (4) Taxation

        The succession to assets, assumption of liabilities, conversion 
    of obligations, instruments, and stock, and effectuation of any 
    other transaction by the Corporation to carry out this subsection 
    shall not be treated as a taxable event under the laws of any State 
    or political subdivision thereof.

(Pub. L. 92-181, title IV, Sec. 4.9, Dec. 10, 1971, 85 Stat. 612; Pub. 
L. 100-233, title II, Sec. 204(a), Jan. 6, 1988, 101 Stat. 1605; Pub. L. 
100-399, title II, Sec. 203(a)-(d), Aug. 17, 1988, 102 Stat. 992, 993; 
Pub. L. 102-552, title V, Sec. 507, Oct. 28, 1992, 106 Stat. 4131.)

                       References in Text

    January 6, 1988, referred to in subsecs. (e) and (f)(3), was in the 
original ``the enactment of this section'', ``the date of the enactment 
of this section'', and ``such date of enactment'', which were translated 
as meaning the date of enactment of Pub. L. 100-233, which amended this 
section generally, to reflect the probable intent of Congress.
    Section 2156 of this title, referred to in subsec. (e)(1), was 
repealed by Pub. L. 100-233, title II, Sec. 204(b), Jan. 6, 1988, 101 
Stat. 1607.
    For text of section 2160 of this title in effect before January 6, 
1988, referred to in subsec. (e)(1), see 1988 Amendment note below.


                               Amendments

    1992--Subsec. (d)(2). Pub. L. 102-552 amended par. (2) generally. 
Prior to amendment, par. (2) read as follows:
    ``(A) Assistance board.--During the period in which the Assistance 
Board is in existence, the board of directors of the Assistance Board 
shall designate one of its directors to serve as a nonvoting 
representative to the board of directors of the Corporation.
    ``(B) Insurance corporation.--After such period, the board of 
directors of the Farm Credit System Insurance Corporation may designate 
one of its directors to serve as a nonvoting representative to the board 
of directors of the Corporation.
    ``(C) Meetings.--The persons so designated by the Assistance Board 
and by the Farm Credit System Insurance Corporation may attend and 
participate in all deliberations of the board of directors of the 
Corporation.''
    1988--Pub. L. 100-233 amended section generally. Prior to amendment, 
section read as follows: ``A fiscal agency shall be established by the 
banks for such of their functions relating to the issuance, marketing, 
and handling of their obligations, and interbank or intersystem flow of 
funds as may from time to time be required.''
    Subsec. (b)(3). Pub. L. 100-399, Sec. 203(b), inserted ``predecessor 
Federal Farm Credit Banks'' before ``Funding Corporation''.
    Subsec. (d)(2)(B), (C). Pub. L. 100-399, Sec. 203(c), substituted 
``directors of the Corporation'' for ``directors of the Federal Farm 
Credit Banks Funding Corporation''.
    Subsec. (e). Pub. L. 100-399, Sec. 203(d), amended subsec. (e) 
generally. Prior to amendment, subsec. (e) read as follows: ``Until a 
quorum of the board of directors of the Corporation is elected or 
appointed, the finance committee established under section 2156 of this 
title in effect before January 6, 1988, and the fiscal agency 
established under section 2160 of this title in effect before January 6, 
1988, shall continue to operate as if this section had not been 
enacted.''
    Subsec. (f). Pub. L. 100-399, Sec. 203(a), added subsec. (f).


                    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.
