
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-2]

 
                       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-2. Board of directors


(a) Interim board

                     (1) Number and appointment

        Until the permanent board of directors established in subsection 
    (b) of this section first meets with a quorum of its members 
    present, the Corporation shall be under the management of an interim 
    board of directors composed of 9 members appointed by the President 
    within 90 days after January 6, 1988, as follows:
            (A) 3 members appointed from among persons who are 
        representatives of banks, other financial institutions or 
        entities, and insurance companies.
            (B) 3 members appointed from among persons who are 
        representatives of the Farm Credit System institutions.
            (C) 2 members appointed from among persons who are farmers 
        or ranchers who are not serving, and have not served, as 
        directors or officers of any financial institution or entity, of 
        which not more than 1 may be a stockholder of any Farm Credit 
        System institution.
            (D) 1 member appointed from among persons who represent the 
        interests of the general public and are not serving, and have 
        not served, as directors or officers of any financial 
        institution or entity.

                      (2) Political affiliation

        Not more than 5 members of the interim board shall be of the 
    same political party.

                             (3) Vacancy

        A vacancy in the interim board shall be filled in the manner in 
    which the original appointment was made.

                   (4) Continuation of membership

        If--
            (A) any member of the interim board who was appointed to 
        such board from among persons who are representatives of banks, 
        other financial institutions or entities, insurance companies, 
        or Farm Credit System institutions ceases to be such a 
        representative; or
            (B) any member who was appointed from among persons who are 
        not or have not been directors or officers of any financial 
        institution or entity becomes a director or an officer of any 
        financial institution or entity;

    such member may continue as a member for not longer than the 45-day 
    period beginning on the date such member ceases to be such a 
    representative or becomes such a director or officer, as the case 
    may be.

                              (5) Terms

        The members of the interim board shall be appointed for the life 
    of such board.

                             (6) Quorum

        5 members of the interim board shall constitute a quorum.

                           (7) Chairperson

        The President shall designate 1 of the members of the interim 
    board as the chairperson of the interim board.

                            (8) Meetings

        The interim board shall meet at the call of the chairperson or a 
    majority of its members.

                       (9) Voting common stock

        (A) Initial offering

            Upon the appointment of sufficient members of the interim 
        board to convene a meeting with a quorum present, the interim 
        board shall arrange for an initial offering of common stock and 
        shall take whatever other actions are necessary to proceed with 
        the operations of the Corporation.

        (B) Purchasers

            Subject to subparagraph (C), the voting common stock shall 
        be offered to banks, other financial entities, insurance 
        companies, and System institutions under such terms and 
        conditions as the interim board may adopt.

        (C) Distribution

            The voting stock shall be fairly and broadly offered to 
        ensure that no institution or institutions acquire a 
        disproportionate amount of the total amount of voting common 
        stock outstanding of a class and that capital contributions and 
        issuances of voting common stock for the contributions are 
        fairly distributed between entities eligible to hold class A and 
        class B stock, as provided under section 2279aa-4 of this title.

                          (10) Termination

        The interim board shall terminate when the permanent board of 
    directors established in subsection (b) of this section first meets 
    with a quorum present.

(b) Permanent board

                          (1) Establishment

        Immediately after the date that banks, other financial 
    institutions or entities, insurance companies, and System 
    institutions have subscribed and fully paid for at least $20,000,000 
    of common stock of the Corporation, the Corporation shall arrange 
    for the election and appointment of a permanent board of directors. 
    After the termination of the interim board, the Corporation shall be 
    under the management of the permanent board.

                           (2) Composition

        The permanent board shall consist of 15 members, of which--
            (A) 5 members shall be elected by holders of common stock 
        that are insurance companies, banks, or other financial 
        institutions or entities;
            (B) 5 members shall be elected by holders of common stock 
        that are Farm Credit System institutions; and
            (C) 5 members shall be appointed by the President, by and 
        with the advice and consent of the Senate--
                (i) which members shall not be, or have been, officers 
            or directors of any financial institutions or entities;
                (ii) which members shall be representatives of the 
            general public;
                (iii) of which members not more than 3 shall be members 
            of the same political party; and
                (iv) of which members at least 2 shall be experienced in 
            farming or ranching.

                     (3) Presidential appointees

        The President shall appoint the members of the permanent board 
    referred to in paragraph (2)(C) not later than the later of--
            (A) the date referred to in paragraph (1); or
            (B) the expiration of the 270-day period beginning on 
        January 6, 1988.

                             (4) Vacancy

        (A) Elected members

            Subject to paragraph (6), a vacancy among the members 
        elected to the permanent board in the manner described in 
        subparagraph (A) or (B) of paragraph (2) shall be filled by the 
        permanent board from among persons eligible for election to the 
        position for which the vacancy exists.

        (B) Appointed members

            A vacancy among the members appointed to the permanent board 
        under paragraph (2)(C) shall be filled in the manner in which 
        the original appointment was made.

                   (5) Continuation of membership

        If--
            (A) any member of the permanent board who was appointed or 
        elected to the permanent board from among persons who are 
        representatives of banks, other financial institutions or 
        entities, insurance companies, or Farm Credit System 
        institutions ceases to be such a representative; or
            (B) any member who was appointed from persons who are not or 
        have not been directors or officers of any financial institution 
        or entity becomes a director or an officer of any financial 
        institution or entity;

    such member may continue as a member for not longer than the 45-day 
    period beginning on the date such member ceases to be such a 
    representative, officer, or employee or becomes such a director or 
    officer, as the case may be.

                              (6) Terms

        (A) Appointed members

            The members appointed by the President shall serve at the 
        pleasure of the President.

        (B) Elected members

            The members elected under subparagraphs (A) and (B) of 
        subsection (b)(2) of this section shall each be elected annually 
        for a term ending on the date of the next annual meeting of the 
        common stockholders of the Corporation and shall serve until 
        their successors are elected and qualified. Any seat on the 
        permanent board that becomes vacant after the annual election of 
        the directors shall be filled by the members of the permanent 
        board from the same category of directors, but only for the 
        unexpired portion of the term.

        (C) Vacancy appointment

            Any member appointed to fill a vacancy occurring before the 
        expiration of the term for which the predecessor of the member 
        was appointed shall be appointed only for the remainder of such 
        term.

        (D) Service after expiration of term

            A member may serve after the expiration of the term of the 
        member until the successor of the member has taken office.

                             (7) Quorum

        8 members of the permanent board shall constitute a quorum.

       (8) No additional pay for Federal officers or employees

        Members of the permanent board who are fulltime officers or 
    employees of the United States shall receive no additional pay by 
    reason of service on the permanent board.

                           (9) Chairperson

        The President shall designate 1 of the members of the permanent 
    board who are appointed by the President as the chairperson of the 
    permanent board.

                            (10) Meetings

        The permanent board shall meet at the call of the chairperson or 
    a majority of its members.

(c) Officers and staff

    The Board may appoint, employ, fix the pay of, and provide other 
allowances and benefits for such officers and employees of the 
Corporation as the Board determines to be appropriate.

(Pub. L. 92-181, title VIII, Sec. 8.2, as added Pub. L. 100-233, title 
VII, Sec. 702, Jan. 6, 1988, 101 Stat. 1688; amended Pub. L. 100-399, 
title VI, Sec. 601(b), Aug. 17, 1988, 102 Stat. 1005.)


                               Amendments

    1988--Subsecs. (a)(1), (b)(3)(B). Pub. L. 100-399 substituted ``date 
of the enactment'' for ``effective date'', both of which for purposes of 
codification were 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.

                  Section Referred to in Other Sections

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