
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-8]

 
                       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-8. Conduct of corporate affairs; examination of 
        System institutions
        

(a) Conduct of corporate affairs

                       (1) Fair administration

        The Board of Directors shall administer the affairs of the 
    Corporation fairly and impartially and without discrimination.

                    (2) Obligations and expenses

        The Board of Directors shall determine and prescribe the manner 
    in which the obligations of the Corporation may be incurred and the 
    expenses of the Corporation may be allowed and paid.

                          (3) Use of mails

        The Corporation may use the United States mails in the same 
    manner and under the same conditions as the executive departments of 
    the Federal Government.

                       (4) Use of information

        The Corporation, with the consent of any board, commission, 
    independent establishment, or executive department of the Federal 
    Government, including any field service thereof, may avail itself of 
    the use of information, services, and facilities thereof in carrying 
    out this part.

           (5) Use of Farm Credit Administration personnel

        To the extent practicable, the Corporation shall use the 
    personnel and resources of the Farm Credit Administration to 
    minimize duplication of effort and to reduce costs.

(b) Examination of System institutions

                      (1) Examination authority

        (A) In general

            If the Board of Directors considers it necessary to examine 
        an insured System bank, a production credit association, an 
        association making direct loans under the authority provided 
        under section 2279b of this title, or any System institution in 
        receivership, the Board may, using Farm Credit Administration 
        examiners, conduct the examination using reports and other 
        information on the System institution prepared or held by the 
        Farm Credit Administration. Notwithstanding any other provision 
        of this chapter, on cancellation of the charter of a System 
        institution, the Corporation shall have authority to examine the 
        system \1\ institution in receivership. An examination shall be 
        performed at such intervals as the Corporation shall determine.
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    \1\ So in original. Probably should be capitalized.
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        (B) Request for additional examination or other information

            If the Board determines that such reports or information are 
        not adequate to enable the Corporation to carry out the duties 
        of the Corporation under this subsection, the Board shall 
        request the Farm Credit Administration to examine or to obtain 
        other information from or about the System institution and 
        provide to the Corporation the resulting examination report or 
        such other information.

                    (2) Appointment of examiners

        If the Farm Credit Administration informs the Corporation that 
    the Farm Credit Administration is unable to comply with a request 
    made under paragraph (1)(B) with respect to a System institution, 
    the Board may appoint examiners to examine the institution.

                        (3) Powers and report

        Each examiner appointed under paragraph (2) shall make such 
    examination of the affairs of the System institution as the Board 
    may direct, and shall make a full and detailed report of the 
    examination to the Corporation.

                   (4) Appointment of claim agents

        The Board of Directors of the Corporation shall appoint claim 
    agents who may investigate and examine all claims for insured 
    obligations.

(c) Oath, affirmations, and testimony

    In connection with examinations under this section, the Corporation 
or its designated representatives may administer oaths and affirmations, 
and may examine, take, and preserve testimony under oath, as to any 
matter with respect to the affairs of any such institution.

(d) Cooperation with FCA examiners

    The examiners appointed by the Board of Directors shall cooperate to 
the maximum extent possible with examiners of the Farm Credit 
Administration to minimize duplication of effort and minimize costs.

(Pub. L. 92-181, title V, Sec. 5.59, as added Pub. L. 100-233, title 
III, Sec. 302, Jan. 6, 1988, 101 Stat. 1615; amended Pub. L. 101-220, 
Sec. 6(b)(3), Dec. 12, 1989, 103 Stat. 1880; Pub. L. 102-552, title II, 
Sec. 203, title V, Sec. 513(a), Oct. 28, 1992, 106 Stat. 4106, 4133; 
Pub. L. 104-105, title II, Sec. 216, Feb. 10, 1996, 110 Stat. 179.)


                               Amendments

    1996--Subsec. (b)(1)(A). Pub. L. 104-105 inserted at end 
``Notwithstanding any other provision of this chapter, on cancellation 
of the charter of a System institution, the Corporation shall have 
authority to examine the system institution in receivership. An 
examination shall be performed at such intervals as the Corporation 
shall determine.''
    1992--Pub. L. 102-552, Sec. 513(a)(1), substituted ``System 
institutions'' for ``insured System banks'' in section catchline.
    Subsec. (a)(5). Pub. L. 102-552, Sec. 203, added par. (5).
    Subsec. (b). Pub. L. 102-552, Sec. 513(a)(2), added subsec. (b) and 
struck out former subsec. (b) which read as follows: ``(b) Examination 
of Insured System Banks.--
        ``(1) Appointment of examiners.--The Board of Directors may 
    appoint examiners who may, on behalf of the Corporation, examine any 
    insured System bank, any production credit association, any other 
    association making direct loans under authority provided under 
    section 2279b of this title, and any System institution in 
    receivership, if in the judgment of the Board of Directors an 
    examination of the institution is necessary.
        ``(2) Powers and report.--Each examiner may make a thorough 
    examination of all affairs of the institution, and shall make a full 
    and detailed report of the condition of the institution to the 
    Corporation.
        ``(3) Appointment of claim agents.--The Board of Directors, in 
    like manner, shall appoint claim agents who may investigate and 
    examine all claims for insured obligations.''
    1989--Subsec. (b)(1). Pub. L. 101-220 inserted ``any other 
association making direct loans under authority provided under section 
2279b of this title,'' after ``any production credit association,''.


                    Effective Date of 1989 Amendment

    Amendment by Pub. L. 101-220 effective for insurance premiums due to 
the Farm Credit System Insurance Corporation under this chapter on or 
after Jan. 1, 1990, based on the loan volume of each bank for each 
calendar year beginning with calendar year 1989, and effective for the 
calculation of the initial premium payment required under section 2277a-
5(c) of this title, see section 6(c) of Pub. L. 101-220, set out as a 
note under section 2020 of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 2254 of this title.
