
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: 12USC2279aa-12]

 
                       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-12. Securities in credit enhanced pools


(a) Federal laws

        (1) Applicability of certain Federal securities laws

        For purposes of section 77c(a)(2) of title 15, no security 
    representing an interest in, or obligations backed by, a pool of 
    qualified loans for which guarantees have been provided by the 
    Corporation shall be deemed to be a security issued or guaranteed by 
    a person controlled or supervised by, or acting as an 
    instrumentality of, the Government of the United States. No such 
    security shall be deemed to be a ``government security'' for 
    purposes of the Securities Exchange Act of 1934 [15 U.S.C. 78a et 
    seq.] or for purposes of the Investment Company Act of 1940 [15 
    U.S.C. 80a-1 et seq.].

          (2) No full faith and credit of the United States

        Each security for which credit enhancement has been provided by 
    the Corporation shall clearly indicate that the security is not an 
    obligation of, and is not guaranteed as to principal or interest by, 
    the Farm Credit Administration, the United States, or any other 
    agency or instrumentality of the United States (other than the 
    Corporation).

(b) State securities laws

                        (1) General exemption

        Any security or obligation that has been provided a guarantee by 
    the Corporation shall be exempt from any law of any State with 
    respect to or requiring registration or qualification of securities 
    or real estate to the same extent as any obligation issued by, or 
    guaranteed as to principal and interest by, the United States or any 
    agency or instrumentality of the United States.

                         (2) State override

        The provisions of paragraph (1) shall not be applicable to any 
    State that, during the 8-year period beginning on January 6, 1988, 
    enacts a law that--
            (A) specifically refers to this subsection; and
            (B) expressly provides that paragraph (1) shall not apply to 
        the State.

(c) Authorized investments

                           (1) In general

        Securities representing an interest in, or obligations backed 
    by, pools of qualified loans with respect to which the Corporation 
    has provided a guarantee shall be authorized investments of any 
    person, trust, corporation, partnership, association, business 
    trust, or business entity created pursuant to or existing under the 
    laws of the United States or any State to the same extent that the 
    person, trust, corporation, partnership, association, business 
    trust, or business entity is authorized under any applicable law to 
    purchase, hold, or invest in obligations issued by or guaranteed as 
    to principal and interest by the United States or any agency or 
    instrumentality of the United States. Such securities or obligations 
    may be accepted as security for all fiduciary, trust, and public 
    funds, the investment or deposits of which shall be under the 
    authority and control of the United States or any State or any 
    officers of either.

      (2) State limitations on purchase, holding, or investment

        If State law limits the purchase, holding, or investment in 
    obligations issued by the United States by the person, trust, 
    corporation, partnership, association, business trust, or business 
    entity, securities or obligations of a certified facility issued on 
    which the Corporation has provided a guarantee shall be considered 
    to be obligations issued by the United States for purposes of the 
    limitation.

                 (3) Nonapplicability of provisions

        (A) Subsequent State law

            Paragraphs (1) and (2) shall not apply with respect to a 
        particular person, trust, corporation, partnership, association, 
        business trust, or business entity, or class thereof, in any 
        State that, prior to the expiration of the 8-year period 
        beginning on January 6, 1988, enacts a law that specifically 
        refers to this section and either prohibits or provides for a 
        more limited authority to purchase, hold, or invest in the 
        securities by any person, trust, corporation, partnership, 
        association, business trust, or business entity, or class 
        thereof, than is provided in paragraphs (1) and (2).

        (B) Effect of subsequent State law

            The enactment by any State of a law of the type described in 
        subparagraph (A) shall not affect the validity of any 
        contractual commitment to purchase, hold, or invest that was 
        made prior to the effective date of the law and shall not 
        require the sale or other disposition of any securities acquired 
        prior to the effective date of the law.

(d) State usury laws superseded

    A provision of the Constitution or law of any State shall not apply 
to an agricultural loan made by an originator or a certified facility in 
accordance with this subchapter for sale to the Corporation or to a 
certified facility for inclusion in a pool for which the Corporation has 
provided, or has committed to provide, a guarantee, if the loan, not 
later than 180 days after the date the loan was made, is sold to the 
Corporation or included in a pool for which the Corporation has provided 
a guarantee, if the provision--
        (1) limits the rate or amount of interest, discount points, 
    finance charges, or other charges that may be charged, taken, 
    received, or reserved by an agricultural lender or a certified 
    facility; or
        (2) limits or prohibits a prepayment penalty (either fixed or 
    declining), yield maintenance, or make-whole payment that may be 
    charged, taken, or received by an agricultural lender or a certified 
    facility in connection with the full or partial payment of the 
    principal amount due on a loan by a borrower in advance of the 
    scheduled date for the payment under the terms of the loan, 
    otherwise known as a prepayment of the loan principal.

(Pub. L. 92-181, title VIII, Sec. 8.12, as added Pub. L. 100-233, title 
VII, Sec. 702, Jan. 6, 1988, 101 Stat. 1703; amended Pub. L. 100-399, 
title VI, Sec. 601(k), (l), Aug. 17, 1988, 102 Stat. 1006; Pub. L. 104-
105, title I, Sec. 112, Feb. 10, 1996, 110 Stat. 165.)


                               Amendments

    1996--Subsec. (d). Pub. L. 104-105 added subsec. (d) and struck out 
heading and text of former subsec. (d). Text read as follows: ``Any 
provision of the constitution or law of any State which expressly limits 
the rate or amount of interest, discount points, finance charges, or 
other charges that may be charged, taken, received, or reserved by 
agricultural lenders or certified facilities shall not apply to any 
agricultural loan made by an originator or a certified facility in 
accordance with this subchapter that is included in a pool for which the 
Corporation has provided a guarantee.''
    1988--Subsec. (a)(1). Pub. L. 100-399, Sec. 601(k), inserted ``, or 
obligations backed by,'' before ``a pool''.
    Subsec. (b)(2). Pub. L. 100-399, Sec. 601(l), substituted ``date of 
the enactment'' for ``effective date'' both of which for purposes of 
codification was translated as ``January 6, 1988,''.


                    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.

                       References in Text

    The Securities Exchange Act of 1934, referred to in subsec. (a)(1), 
is act June 6, 1934, ch. 404, 48 Stat. 881, as amended, which is 
classified principally to chapter 2B (Sec. 78a et seq.) of Title 15, 
Commerce and Trade. For complete classification of this Act to the Code, 
see section 78a of Title 15 and Tables.
    The Investment Company Act of 1940, referred to in subsec. (a)(1), 
is title I of act Aug. 22, 1940, ch. 686, 54 Stat. 789, as amended, 
which is classified generally to subchapter I (Sec. 80a-1 et seq.) of 
chapter 2D of Title 15. For complete classification of this Act to the 
Code, see section 80a-51 of Title 15 and Tables.
