
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: 12USC2279aa-10]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
         SUBCHAPTER VIII--AGRICULTURAL MORTGAGE SECONDARY MARKET
 
 Part A--Establishment and Activities of Federal Agricultural Mortgage 
                               Corporation
 
Sec. 2279aa-10. Funding for guarantee; reserves of Corporation


(a) Guarantee

    The Corporation shall provide guarantees for securities representing 
interests in, or obligations backed by, pools of qualified loans through 
commitments issued by the Corporation providing for guarantees.

(b) Guarantee fees

                           (1) Initial fee

        At the time a guarantee is issued by the Corporation, the 
    Corporation shall assess the certified facility a fee of not more 
    than \1/2\ of 1 percent of the initial principal amount of each pool 
    of qualified loans.

                           (2) Annual fees

        Beginning in the second year after the date the guarantee is 
    issued under paragraph (1), the Corporation may, at the end of each 
    year, assess the certified facility an annual fee of not more than 
    \1/2\ of 1 percent of the principal amount of the loans then 
    constituting the pool.

                     (3) Determination of amount

        The Corporation shall establish such fees on the amount of risk 
    incurred by the Corporation in providing the guarantees with respect 
    to which such fee is assessed, as determined by the Corporation. 
    Fees assessed under paragraphs (1) and (2) shall be established on 
    an actuarially sound basis.

                          (4) Review by GAO

        The Comptroller General of the United States may review, and 
    submit to the Congress a report regarding, the actuarial soundness 
    and reasonableness of the fees established by the Corporation under 
    this subsection.

(c) Corporation reserve against guarantees losses required

                           (1) In general

        So much of the fees assessed under this section as the Board 
    determines to be necessary shall be set aside by the Corporation in 
    a segregated account as a reserve against losses arising out of the 
    guarantee activities of the Corporation.

                 (2) Exhaustion of reserve required

        The Corporation may not issue obligations to the Secretary of 
    the Treasury under section 2279aa-13 of this title in order to meet 
    the obligations of the Corporation with respect to any guarantees 
    provided under this subchapter until the reserve established under 
    paragraph (1) has been exhausted.

(d) Fees to cover administrative costs authorized

    The Corporation may impose charges or fees in reasonable amounts in 
connection with the administration of its activities under this 
subchapter to recover its costs for performing such administration.

(Pub. L. 92-181, title VIII, Sec. 8.10, as added Pub. L. 100-233, title 
VII, Sec. 702, Jan. 6, 1988, 101 Stat. 1701; amended Pub. L. 104-316, 
title I, Sec. 106(f), Oct. 19, 1996, 110 Stat. 3831.)


                               Amendments

    1996--Subsec. (b)(4). Pub. L. 104-316 substituted ``Review'' for 
``Annual review'' in heading and ``may review'' for ``shall annually 
review'' in text.

                  Section Referred to in Other Sections

    This section is referred to in sections 2279aa-4, 2279aa-13 of this 
title.
