
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: 12USC2277a-10a]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
          SUBCHAPTER V--FARM CREDIT ADMINISTRATION ORGANIZATION
 
            Part E--Farm Credit System Insurance Corporation
 
Sec. 2277a-10a. Oversight actions by Corporation


(a) ``Institution'' defined

    In this section, the term ``institution'' means--
        (1) an insured System bank; and
        (2) a production credit association or other association making 
    loans under section 2279b of this title with a direct loan payable 
    to the funding bank of the association that comprises 20 percent or 
    more of the funding bank's total loan volume net of nonaccrual 
    loans.

(b) Consultation regarding participation of undercapitalized banks in 
        issuance of insured obligations

    The Farm Credit Administration shall consult with the Corporation 
prior to approving an insured obligation that is to be issued by or on 
behalf of, or participated in by, any insured System bank that fails to 
meet the minimum level for any capital requirement established by the 
Farm Credit Administration for the bank.

(c) Consultation regarding applications for mergers and restructurings

     (1) Corporation to receive copy of transaction applications

        On receiving an application for a merger or restructuring of an 
    institution, the Farm Credit Administration shall forward a copy of 
    the application to the Corporation.

                      (2) Consultation required

        If the proposed merger or restructuring involves an institution 
    that fails to meet the minimum level for any capital requirement 
    established by the Farm Credit Administration applicable to the 
    institution, the Farm Credit Administration shall allow 30 days 
    within which the Corporation may submit the views and 
    recommendations of the Corporation, including any conditions for 
    approval. In determining whether to approve or disapprove any 
    proposed merger or restructuring, the Farm Credit Administration 
    shall give due consideration to the views and recommendations of the 
    Corporation.

(Pub. L. 92-181, title V, Sec. 5.61A, as added Pub. L. 104-105, title 
II, Sec. 218, Feb. 10, 1996, 110 Stat. 180.)
