
From the U.S. Code Online via GPO Access
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[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-9]

 
                       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-9. Insurance Fund


(a) Establishment

    There is hereby established a Farm Credit Insurance Fund 
(hereinafter referred to in this section as the ``Insurance Fund'') for 
insuring the timely payment of principal and interest on insured 
obligations. The assets in the Fund shall be held by the Corporation for 
the uses and purposes of the Corporation.

(b) Amounts in Fund

                         (1) Revolving fund

        All amounts in the revolving fund established by section 2151 of 
    this title shall be transferred into the Farm Credit Insurance Fund 
    on January 1, 1989, or 12 months after January 6, 1988, whichever is 
    later, except that the obligations to, and rights of, any person in 
    such revolving fund arising out of any event or transaction before 
    January 6, 1988, shall remain unimpaired.

                       (2) Deposit of premiums

        The Corporation shall deposit in the Insurance Fund all premium 
    payments received by the Corporation under this part.

(c) Uses of Fund

                          (1) Mandatory use

        Beginning January 1, 1993, the Corporation shall expend amounts 
    in the Insurance Fund to the extent necessary to insure the timely 
    payment of interest and principal on insured obligations.

                      (2) Other mandatory uses

        Beginning January 1, 1993, the Corporation shall use amounts in 
    the Insurance Fund to--
            (A) satisfy System institution defaults through the purchase 
        of preferred stock or other payments as provided for in section 
        2278b-6(d)(3) of this title; and
            (B) ensure the retirement of eligible borrower stock at par 
        value under section 2162 of this title.

                         (3) Permissive uses

        The Corporation may expend amounts in the Insurance Fund to 
    carry out section 2277a-10 of this title and to cover the operating 
    costs of the Corporation.

                  (4) Corporate payment or refunds

        The Corporation shall make all payments and refunds required to 
    be made by the Corporation under this part from amounts in the 
    Insurance Fund.

(Pub. L. 92-181, title V, Sec. 5.60, as added Pub. L. 100-233, title 
III, Sec. 302, Jan. 6, 1988, 101 Stat. 1616; amended Pub. L. 100-399, 
title III, Sec. 302(j)-(l), Aug. 17, 1988, 102 Stat. 994; Pub. L. 101-
624, title XVIII, Sec. 1836(a), Nov. 28, 1990, 104 Stat. 3833.)


                               Amendments

    1990--Subsec. (c)(1), (2). Pub. L. 101-624 substituted ``January 1, 
1993'' for ``5 years after the date of the enactment of this part'' in 
par. (1) and for ``5 years after the date of enactment of this part'' in 
par. (2).
    1988--Subsec. (b)(1). Pub. L. 100-399, Sec. 302(j), struck out ``(in 
effect immediately before January 6, 1988)'' after ``section 2151 of 
this title''.
    Subsec. (b)(2). Pub. L. 100-399, Sec. 302(k), substituted ``The'' 
for ``Beginning 5 years after January 6, 1988, the''.
    Subsec. (c)(2)(B). Pub. L. 100-399, Sec. 302(l), amended subpar. (B) 
generally. Prior to amendment, subpar. (B) read as follows: ``ensure the 
retirement of borrower stock at par value and participation certificates 
or other similar equities at face value as provided for under section 
2162(c)(2) of this title.''


                    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.

                  Section Referred to in Other Sections

    This section is referred to in sections 2278b-6, 2278b-11 of this 
title.
