
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-5]

 
                       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-5. Certification of agricultural mortgage marketing 
        facilities
        

(a) Eligibility standards

                     (1) Establishment required

        Within 120 days after the date on which the permanent board 
    first meets with a quorum present, the Corporation shall issue 
    standards for the certification of agricultural mortgage marketing 
    facilities (other than the Corporation), including eligibility 
    standards in accordance with paragraph (2).

                      (2) Minimum requirements

        To be eligible to be certified under the standards referred to 
    in paragraph (1), an agricultural mortgage marketing facility (other 
    than the Corporation) shall--
            (A) be an institution of the Farm Credit System or a 
        corporation, association, or trust organized under the laws of 
        the United States or of any State;
            (B) meet or exceed capital standards established by the 
        Board;
            (C) have as one of the purposes of the facility, the sale or 
        resale of securities representing interests in, or obligations 
        backed by, pools of qualified loans that have been provided 
        guarantees by the Corporation;
            (D) demonstrate managerial ability with respect to 
        agricultural mortgage loan underwriting, servicing, and 
        marketing that is acceptable to the Corporation;
            (E) adopt appropriate agricultural mortgage loan 
        underwriting, appraisal, and servicing standards and procedures 
        that meet or exceed the standards established by the Board;
            (F) for purposes of enabling the Corporation to examine the 
        facility, agree to allow officers or employees of the 
        Corporation to have access to all books, accounts, financial 
        records, reports, files, and all other papers, things, or 
        property, of any type whatsoever, belonging to or used by the 
        Corporation that are necessary to facilitate an examination of 
        the operations of the facility in connection with securities, 
        and the pools of qualified loans that back securities, for which 
        the Corporation has provided guarantees; and
            (G) adopt appropriate minimum standards and procedures 
        relating to loan administration and disclosure to borrowers 
        concerning the terms and rights applicable to loans for which 
        guarantee is provided, in conformity with uniform standards 
        established by the Corporation.

                  (3) Nondiscrimination requirement

        The standards established under this subsection shall not 
    discriminate between or against Farm Credit System and non-Farm 
    Credit System applicants.

(b) Certification by Corporation

    Within 60 days after receiving an application for certification 
under this section, the Corporation shall certify the facility if the 
facility meets the standards established by the Corporation under 
subsection (a)(1) of this section.

(c) Maximum time period for certification

    Any certification by the Corporation of an agricultural mortgage 
marketing facility shall be effective for a period determined by the 
Corporation of not to exceed 5 years.

(d) Revocation

                           (1) In general

        After notice and an opportunity for a hearing, the Corporation 
    may revoke the certification of an agricultural mortgage marketing 
    facility if the Corporation determines that the facility no longer 
    meets the standards referred to in subsection (a) of this section.

                      (2) Effect of revocation

        Revocation of a certification shall not affect any pool 
    guarantee that has been issued by the Corporation.

(e) Affiliation of FCS institutions with facility

              (1) Establishment of affiliate authorized

        Notwithstanding any other provision of this chapter, any Farm 
    Credit System institution, acting for such institution alone or in 
    conjunction with one or more other such institutions, may establish 
    and operate, as an affiliate, an agricultural mortgage marketing 
    facility if, within a reasonable time after such establishment, such 
    facility obtains and thereafter retains certification under 
    subsection (b) of this section as a certified facility.

              (2) Exclusive agency agreement authorized

        Any number of Farm Credit System institutions (other than the 
    Corporation) may enter into an agreement with any certified facility 
    (including an affiliate established under paragraph (1)) to sell the 
    qualified loans of such institutions exclusively to or through the 
    facility.

(Pub. L. 92-181, title VIII, Sec. 8.5, as added Pub. L. 100-233, title 
VII, Sec. 702, Jan. 6, 1988, 101 Stat. 1694; amended Pub. L. 104-105, 
title I, Sec. 106, Feb. 10, 1996, 110 Stat. 164.)


                               Amendments

    1996--Subsec. (a)(1). Pub. L. 104-105, Sec. 106(1)(A), inserted 
``(other than the Corporation)'' after ``facilities''.
    Subsec. (a)(2). Pub. L. 104-105, Sec. 106(1)(B), inserted ``(other 
than the Corporation)'' after ``facility'' in introductory provisions.
    Subsec. (e)(1). Pub. L. 104-105, Sec. 106(2), struck out ``(other 
than the Corporation)'' after ``System institution''.

                  Section Referred to in Other Sections

    This section is referred to in section 2279aa of this title.
