
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: 12USC2279b]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
          SUBCHAPTER VII--RESTRUCTURING OF SYSTEM INSTITUTIONS
 
Part B--Mergers, Transfers of Assets, and Powers of Associations Within 
                               a District
 
    subpart 1--transfers by federal land banks to federal land bank 
                              associations
 
Sec. 2279b. Transfer of lending authority


(a) Voluntary transfers

    A Federal land bank or a merged bank having a Federal land bank as 
one of its constituents, may transfer to a Federal land bank 
association, and the association may assume, the authority of the 
transferring bank in the territorial area served by the association, to 
make and participate in long-term real estate mortgage loans under this 
chapter if the transfer is approved by--
        (1) the Farm Credit Administration Board;
        (2) the Board of Directors of both institutions; and
        (3) a majority of the stockholders of the bank and of the 
    association, in accordance with the voting provisions of sections 
    2279a and 2279c-1 of this title, respectively.

(b) Direct loans and financial assistance

    After a transfer described in subsection (a) or (d) of this 
section--
        (1) the Federal land bank association shall possess all of the 
    direct long-term real estate mortgage loan authority, formerly 
    possessed by the transferring bank, in the territory served by the 
    association; and
        (2) the bank may provide and extend financial assistance to, and 
    discount for, or purchase from, the transferee Federal land bank 
    association any note, draft, or other obligation with the 
    endorsement or guarantee of the association, the proceeds of which 
    have been advanced to persons eligible and for purposes of financing 
    by the association under subsection (a) of this section.

(c) Regulations

    The Farm Credit Administration shall issue regulations that 
establish the manner in which the powers and obligations of the banks 
that make transfers are consolidated and, to the extent necessary, 
reconciled in the association referred to in subsection (a) of this 
section.

(d) Mandatory transfer

    On the merger of one or more production credit associations with one 
or more Federal land bank associations, the bank supervising the Federal 
land bank association shall transfer all of the direct lending authority 
of the bank in the territory served by such Federal land bank 
association to such merged association.

(Pub. L. 92-181, title VII, Sec. 7.6, formerly Secs. 7.6, 7.7, as added 
Pub. L. 100-233, title IV, Sec. 416, Jan. 6, 1988, 101 Stat. 1647; 
amended Pub. L. 100-399, title IV, Sec. 408(f)-(j), Aug. 17, 1988, 102 
Stat. 1001, 1002.)

                          Codification

    Pub. L. 100-399, Sec. 408(j), transferred section 7.7 of Pub. L. 92-
181, which was classified to section 2279c of this title, to subsec. (d) 
of this section.


                               Amendments

    1988--Subsec. (a). Pub. L. 100-399, Sec. 408(f), substituted 
``Voluntary transfers'' for ``Assignments'' as subsection heading, and 
in text substituted ``may transfer'' for ``may assign'', ``this 
chapter'' for ``sections 2014 through 2017 of this title'', and 
``transfer is approved'' for ``assignment is approved'' in introductory 
provisions, and ``sections 2279a and 2279c-1 of this title, 
respectively'' for ``sections 2279a and 2279b of this title'' in par. 
(3).
    Subsec. (b). Pub. L. 100-399, Sec. 408(g), substituted ``a transfer 
described in subsection (a) or (d)'' for ``an assignment described in 
subsection (a)'' in introductory provisions and ``the bank may provide'' 
for ``the Federal land bank may provide'' in par. (2).
    Subsec. (c). Pub. L. 100-399, Sec. 408(h), struck out ``assignments 
or'' before ``transfers are consolidated'' and struck out second 
sentence, which provided that, following a transfer or assignment under 
subsection (a) of this section, the provisions of section 2154a of this 
title were to be applicable to the association.
    Subsec. (d). Pub. L. 100-399, Sec. 408(i), (j), transferred section 
2279c of this title to subsec. (d) of this section, substituted heading 
for former section heading, and amended text generally. Prior to 
amendment, text read as follows: ``On the merger of one or more 
production credit associations with one or more Federal land bank 
associations, the bank supervising the Federal land bank association 
shall transfer all of its direct lending authority of the bank to such 
association under section 2279c-1 of this title.''


                    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 2015, 2020, 2277a-4, 2277a-
8, 2277a-10, 2277a-10a, 2279c-2 of this title.
