
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: 12USC2279cc]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
         SUBCHAPTER VIII--AGRICULTURAL MORTGAGE SECONDARY MARKET
 
   Part C--Receivership, Conservatorship, and Liquidation of Federal 
                    Agricultural Mortgage Corporation
 
Sec. 2279cc. Conservatorship; liquidation; receivership


(a) Voluntary liquidation

    The Corporation may voluntarily liquidate only with the consent of, 
and in accordance with a plan of liquidation approved by, the Farm 
Credit Administration Board.

(b) Involuntary liquidation

                           (1) In general

        The Farm Credit Administration Board may appoint a conservator 
    or receiver for the Corporation under the circumstances specified in 
    section 2183(b) of this title.

                           (2) Application

        In applying section 2183(b) of this title to the Corporation 
    under paragraph (1)--
            (A) the Corporation shall also be considered insolvent if 
        the Corporation is unable to pay its debts as they fall due in 
        the ordinary course of business;
            (B) a conservator may also be appointed for the Corporation 
        if the authority of the Corporation to purchase qualified loans 
        or issue or guarantee loan-backed securities is suspended; and
            (C) a receiver may also be appointed for the Corporation 
        if--
                (i)(I) the authority of the Corporation to purchase 
            qualified loans or issue or guarantee loan-backed securities 
            is suspended; or
                (II) the Corporation is classified under section 2279bb-
            4 of this title as within level III or IV and the 
            alternative actions available under part B are not 
            satisfactory; and
                (ii) the Farm Credit Administration determines that the 
            appointment of a conservator would not be appropriate.

                (3) No effect on supervisory actions

        The grounds for appointment of a conservator for the Corporation 
    under this subsection shall be in addition to those in section 
    2279bb-6 of this title.

(c) Appointment of conservator or receiver

                         (1) Qualifications

        Notwithstanding section 2183(b) of this title, if a conservator 
    or receiver is appointed for the Corporation, the conservator or 
    receiver shall be--
            (A) the Farm Credit Administration or any other governmental 
        entity or employee, including the Farm Credit System Insurance 
        Corporation; or
            (B) any person that--
                (i) has no claim against, or financial interest in, the 
            Corporation or other basis for a conflict of interest as the 
            conservator or receiver; and
                (ii) has the financial and management expertise 
            necessary to direct the operations and affairs of the 
            Corporation and, if necessary, to liquidate the Corporation.

                          (2) Compensation

        (A) In general

            A conservator or receiver for the Corporation and 
        professional personnel (other than a Federal employee) employed 
        to represent or assist the conservator or receiver may be 
        compensated for activities conducted as, or for, a conservator 
        or receiver.

        (B) Limit on compensation

            Compensation may not be provided in amounts greater than the 
        compensation paid to employees of the Federal Government for 
        similar services, except that the Farm Credit Administration may 
        provide for compensation at higher rates that are not in excess 
        of rates prevailing in the private sector if the Farm Credit 
        Administration determines that compensation at higher rates is 
        necessary in order to recruit and retain competent personnel.

        (C) Contractual arrangements

            The conservator or receiver may contract with any 
        governmental entity, including the Farm Credit System Insurance 
        Corporation, to make personnel, services, and facilities of the 
        entity available to the conservator or receiver on such terms 
        and compensation arrangements as shall be mutually agreed, and 
        each entity may provide the same to the conservator or receiver.

                            (3) Expenses

        A valid claim for expenses of the conservatorship or 
    receivership (including compensation under paragraph (2)) and a 
    valid claim with respect to a loan made under subsection (f) of this 
    section shall--
            (A) be paid by the conservator or receiver from funds of the 
        Corporation before any other valid claim against the 
        Corporation; and
            (B) may be secured by a lien, on such property of the 
        Corporation as the conservator or receiver may determine, that 
        shall have priority over any other lien.

                            (4) Liability

        If the conservator or receiver for the Corporation is not a 
    Federal entity, or an officer or employee of the Federal Government, 
    the conservator or receiver shall not be personally liable for 
    damages in tort or otherwise for an act or omission performed 
    pursuant to and in the course of the conservatorship or 
    receivership, unless the act or omission constitutes gross 
    negligence or any form of intentional tortious conduct or criminal 
    conduct.

                         (5) Indemnification

        The Farm Credit Administration may allow indemnification of the 
    conservator or receiver from the assets of the conservatorship or 
    receivership on such terms as the Farm Credit Administration 
    considers appropriate.

(d) Judicial review of appointment

                           (1) In general

        Notwithstanding subsection (i)(1) of this section, not later 
    than 30 days after a conservator or receiver is appointed under 
    subsection (b) of this section, the Corporation may bring an action 
    in the United States District Court for the District of Columbia for 
    an order requiring the Farm Credit Administration Board to remove 
    the conservator or receiver. The court shall, on the merits, dismiss 
    the action or direct the Farm Credit Administration Board to remove 
    the conservator or receiver.

                      (2) Stay of other actions

        On the commencement of an action under paragraph (1), any court 
    having jurisdiction of any other action or enforcement proceeding 
    authorized under this chapter to which the Corporation is a party 
    shall stay the action or proceeding during the pendency of the 
    action for removal of the conservator or receiver.

(e) General powers of conservator or receiver

    The conservator or receiver for the Corporation shall have such 
powers to conduct the conservatorship or receivership as shall be 
provided pursuant to regulations adopted by the Farm Credit 
Administration Board. Such powers shall be comparable to the powers 
available to a conservator or receiver appointed pursuant to section 
2183(b) of this title.

(f) Borrowings for working capital

                           (1) In general

        If the conservator or receiver of the Corporation determines 
    that it is likely that there will be insufficient funds to pay the 
    ongoing administrative expenses of the conservatorship or 
    receivership or that there will be insufficient liquidity to fund 
    maturing obligations of the conservatorship or receivership, the 
    conservator or receiver may borrow funds in such amounts, from such 
    sources, and at such rates of interest as the conservator or 
    receiver considers necessary or appropriate to meet the 
    administrative expenses or liquidity needs of the conservatorship or 
    receivership.

             (2) Working capital from Farm Credit banks

        A Farm Credit bank may loan funds to the conservator or receiver 
    for a loan authorized under paragraph (1) or, in the event of 
    receivership, a Farm Credit bank may purchase assets of the 
    Corporation.

(g) Agreements against interests of conservator or receiver

    No agreement that tends to diminish or defeat the right, title, or 
interest of the conservator or receiver for the Corporation in any asset 
acquired by the conservator or receiver as conservator or receiver for 
the Corporation shall be valid against the conservator or receiver 
unless the agreement--
        (1) is in writing;
        (2) is executed by the Corporation and any person claiming an 
    adverse interest under the agreement, including the obligor, 
    contemporaneously with the acquisition of the asset by the 
    Corporation;
        (3) is approved by the Board or an appropriate committee of the 
    Board, which approval shall be reflected in the minutes of the Board 
    or committee; and
        (4) has been, continuously, from the time of the agreement's 
    execution, an official record of the Corporation.

(h) Report to Congress

    On a determination by the receiver for the Corporation that there 
are insufficient assets of the receivership to pay all valid claims 
against the receivership, the receiver shall submit to the Secretary of 
the Treasury, the Committee on Agriculture of the House of 
Representatives, and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate a report on the financial condition of the 
receivership.

(i) Termination of authorities

                           (1) Corporation

        The charter of the Corporation shall be canceled, and the 
    authority provided to the Corporation by this subchapter shall 
    terminate, on such date as the Farm Credit Administration Board 
    determines is appropriate following the placement of the Corporation 
    in receivership, but not later than the conclusion of the 
    receivership and discharge of the receiver.

                            (2) Oversight

        The Office of Secondary Market Oversight established under 
    section 2279aa-11 of this title shall be abolished, and section 
    2279aa-11(a) of this title and part B shall have no force or effect, 
    on such date as the Farm Credit Administration Board determines is 
    appropriate following the placement of the Corporation in 
    receivership, but not later than the conclusion of the receivership 
    and discharge of the receiver.

(Pub. L. 92-181, title VIII, Sec. 8.41, as added Pub. L. 104-105, title 
I, Sec. 118, Feb. 10, 1996, 110 Stat. 168.)
