
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-11]

 
                       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-11. Supervision, examination, and report of 
        condition
        

(a) Regulation

                            (1) Authority

        Notwithstanding any other provision of this chapter, the Farm 
    Credit Administration shall have the authority to provide, acting 
    through the Office of Secondary Market Oversight--
            (A) for the examination of the Corporation and its 
        affiliates; and
            (B) for the general supervision of the safe and sound 
        performance of the powers, functions, and duties vested in the 
        Corporation and its affiliates by this subchapter, including 
        through the use of the authorities granted to the Farm Credit 
        Administration under--
                (i) part C of subchapter V of this chapter; and
                (ii) beginning 6 months after December 13, 1991, section 
            2252(a)(9) of this title.

                         (2) Considerations

        In exercising its authority pursuant to this section, the Farm 
    Credit Administration shall consider--
            (A) the purposes for which the Corporation was created;
            (B) the practices appropriate to the conduct of secondary 
        markets in agricultural loans; and
            (C) the reduced levels of risk associated with appropriately 
        structured secondary market transactions.

              (3) Office of Secondary Market Oversight

        (A) Not later than 180 days after December 13, 1991, the Farm 
    Credit Administration Board shall establish within the Farm Credit 
    Administration the Office of Secondary Market Oversight.
        (B) The Farm Credit Administration Board shall carry out the 
    authority set forth in this section through the Office of Secondary 
    Market Oversight.
        (C) The Office of Secondary Market Oversight shall be managed by 
    a full-time Director who shall be selected by and report to the Farm 
    Credit Administration Board.

(b) Examinations and audits

                           (1) In general

        The financial transactions of the Corporation shall be examined 
    by examiners of the Farm Credit Administration in accordance with 
    the principles and procedures applicable to commercial corporate 
    transactions under such rules and regulations as may be prescribed 
    by the Administration.

                            (2) Frequency

        The examinations shall occur at such times as the Farm Credit 
    Administration Board may determine, but in no event less than once 
    each year.

                             (3) Access

        The examiners shall--
            (A) have access to all books, accounts, financial records, 
        reports, files, and all other papers, things, or property 
        belonging to or in use by the Corporation and necessary to 
        facilitate the audit; and
            (B) be afforded full access for verifying transactions with 
        certified facilities and other entities with whom the 
        Corporation conducts transactions.

(c) Annual report of condition

    The Corporation shall make and publish an annual report of condition 
as prescribed by the Farm Credit Administration. Each report shall 
contain financial statements prepared in accordance with generally 
accepted accounting principles and contain such additional information 
as the Farm Credit Administration may by regulation prescribe. The 
financial statements of the Corporation shall be audited by an 
independent public accountant.

(d) FCA assessments to cover costs

    The Farm Credit Administration shall assess the Corporation for the 
cost to the Administration of any regulatory activities conducted under 
this section, including the cost of any examination.

(e) ``Affiliate'' defined

    As used in this subchapter, the term ``affiliate'' shall mean an 
entity effectively controlled or owned by the Corporation, except that 
such term shall not include an originator (as defined in section 
2279aa(7) of this title).

(f) Employees and personnel

    The Farm Credit Administration Board shall ensure that--
        (1) the Office of Secondary Market Oversight has access to a 
    sufficient number of qualified and trained employees to adequately 
    supervise the secondary market activities of the Corporation; and
        (2) the supervision of the powers, functions, and duties of the 
    Corporation is performed, to the extent practicable, by personnel 
    who are not responsible for the supervision of the banks and 
    associations of the Farm Credit System.

(Pub. L. 92-181, title VIII, Sec. 8.11, as added Pub. L. 100-233, title 
VII, Sec. 702, Jan. 6, 1988, 101 Stat. 1702; amended Pub. L. 101-624, 
title XVIII, Sec. 1840, Nov. 28, 1990, 104 Stat. 3835; Pub. L. 102-237, 
title V, Sec. 503(a), Dec. 13, 1991, 105 Stat. 1870; Pub. L. 102-552, 
title III, Sec. 308(b)(2), Oct. 28, 1992, 106 Stat. 4116; Pub. L. 104-
105, title I, Sec. 111, Feb. 10, 1996, 110 Stat. 165.)


                               Amendments

    1996--Subsec. (e). Pub. L. 104-105 substituted ``section 2279aa(7) 
of this title'' for ``paragraphs (3) and (7), respectively, of section 
2279aa of this title'' and struck out ``a certified facility or'' before 
``an originator''.
    1992--Subsec. (a)(1)(B)(ii). Pub. L. 102-552 substituted ``December 
13, 1991'' for ``the date of enactment of this section''.
    1991--Subsec. (a)(1). Pub. L. 102-237, Sec. 503(a)(1), amended par. 
(1) generally. Prior to amendment, par. (1) read as follows: 
``Notwithstanding any other provision of this chapter, the Farm Credit 
Administration shall have the authority to--
        ``(A) provide for the examination of the condition of the 
    Corporation and its affiliates; and
        ``(B) provide for the general supervision of the safe and sound 
    performance of the powers, functions, and duties vested in the 
    Corporation and its affiliates by this subchapter, including through 
    the use of the enforcement powers of the Farm Credit Administration 
    under part C of subchapter V of this chapter.''
    Subsec. (a)(3). Pub. L. 102-237, Sec. 503(a)(2), added par. (3).
    Subsec. (f). Pub. L. 102-237, Sec. 503(a)(3), added subsec. (f).
    1990--Subsec. (a)(1). Pub. L. 101-624, Sec. 1840(1), amended par. 
(1) generally. Prior to amendment, par. (1) read as follows: 
``Notwithstanding any other provision of this chapter, the regulatory 
authority of the Farm Credit Administration with respect to the 
Corporation shall be confined to--
        ``(A) providing for the examination of the condition of the 
    Corporation; and
        ``(B) providing for the general supervision of the safe and 
    sound performance of the powers, functions, and duties vested in the 
    Corporation by this subchapter, including through the use of the 
    enforcement powers of the Farm Credit Administration under part C of 
    subchapter V of this chapter.''
    Subsec. (e). Pub. L. 101-624, Sec. 1840(2), added subsec. (e).

                  Section Referred to in Other Sections

    This section is referred to in sections 2279aa-3, 2279bb, 2279cc of 
this title.
