Title 12 — Banks and Banking
Chapter 23 — Farm Credit System
§ 2018. Security; terms
Statutory text
Real estate loans
Maximum level of loans
In general
Real estate mortgage loans originated by a Farm Credit Bank, or in which a Farm Credit Bank participates in with a lender that is not a System institution, shall not exceed 85 percent of the appraised value of the real estate security, except as provided for in subparagraphs (C) and (D).
Regulation
The Farm Credit Administration may, by regulation, require that loans not exceed 75 percent of the appraised value of the real estate security.
Guaranteed loans
If the loan is guaranteed by Federal, State, or other governmental agencies, the loan may not exceed 97 percent of the appraised value of the real estate security, as may be authorized under regulations of the Farm Credit Administration.
Private mortgage insurance
A loan on which private mortgage insurance is obtained may exceed 85 percent of the appraised value of the real estate security to the extent that the loan amount in excess of such 85 percent is covered by the insurance.
Security
All loans originated or participated in by a bank under this section shall be secured by first liens on interests in real estate of such classes as may be prescribed by regulations of the Farm Credit Administration.
Value of security
To adequately secure the loan, the value of security shall be determined by appraisal under standards prescribed by the bank in accordance with regulations of the Farm Credit Administration.
Additional security
Additional security for any loan may be required by the bank to supplement real estate security. Credit factors, other than the ratio between the amount of the loan and the security value, shall be given due consideration.
Intermediate credit
Loans, other than real estate loans, and discounts made under the provisions of this subchapter shall be repayable in not more than 7 years (15 years if made to producers or harvesters of aquatic products) from the time that such are made or discounted by the Farm Credit Bank, except that the Board of Directors, under regulations of the Farm Credit Administration, may approve policies permitting loans, advances, or discounts (other than those made to producers or harvesters of aquatic products) to be repayable in not more than 10 years from the time that such are made or discounted by such bank.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Farm Credit Act of 1971
Pub. L. 92–181 title I § 1 · 85 Stat. 583
Enacted · 12 U.S.C. § 2018
Pub. L. 92–181, title I, § 1.10, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1627
Source evidence
Code source credit
Pub. L. 92–181, title I, § 1.10, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1627Enacted provision · exact public law section
(1) Adopt and use a corporate seal.Agricultural Credit Technical Corrections Act of 1988
Pub. L. 100–399 § 401(h)(1) · 102 Stat. 989
Substituted · 12 U.S.C. § 2018(a)(2)
Pub. L. 100–399, § 401(h)(1), substituted “prescribed by regulations of” for “approved by”
Source evidence
Code amendment note
Subsec. (a)(2). Pub. L. 100–399, § 401(h)(1), substituted “prescribed by regulations of” for “approved by”.Enacted provision · exact public law section
(1) in paragraph (2), by striking out “approved by” and inserting in lieu thereof “prescribed by regulations of”; andEffective date note
Amendment by Pub. L. 100–399 effective immediately after amendment made by section 401 of Pub. L. 100–233, which was effective 6 months after Jan. 6, 1988, see section 1001(b) of Pub. L. 100–399, set out as a note under section 2002 of this title.Agricultural Credit Technical Corrections Act of 1988
Pub. L. 100–399 § 401(h)(2) · 102 Stat. 989
Substituted · 12 U.S.C. § 2018(a)(3)
Pub. L. 100–399, § 401(h)(2), substituted “under standards” for “under appraisal standards”
Substituted · 12 U.S.C. § 2018(a)(3)
Pub. L. 100–399, § 401(h)(2), substituted “in accordance with regulations of” for “and approved by”
Source evidence
Code amendment note
Subsec. (a)(3). Pub. L. 100–399, § 401(h)(2), substituted “under standards” for “under appraisal standards” and “in accordance with regulations of” for “and approved by”.Enacted provision · exact public law section
(2) in paragraph (3)— (A) by striking out “appraisal” the second place it appears; and (B) by striking out “and approved by” and inserting in lieu thereof “in accordance with regulations of”.Effective date note
Amendment by Pub. L. 100–399 effective immediately after amendment made by section 401 of Pub. L. 100–233, which was effective 6 months after Jan. 6, 1988, see section 1001(b) of Pub. L. 100–399, set out as a note under section 2002 of this title.Agricultural Credit Technical Corrections Act of 1988
Pub. L. 100–399 § 401(i) · 102 Stat. 989
Substituted · 12 U.S.C. § 2018(b)
Pub. L. 100–399, § 401(i), substituted “harvesters of aquatic products) from” for “harvester of aquatic products) from”
Source evidence
Code amendment note
Subsec. (b). Pub. L. 100–399, § 401(i), substituted “harvesters of aquatic products) from” for “harvester of aquatic products) from”.Enacted provision · exact public law section
(i) Section 1.10(b) is amended by striking out “harvester” and inserting in lieu thereof “harvesters”.Effective date note
Amendment by Pub. L. 100–399 effective immediately after amendment made by section 401 of Pub. L. 100–233, which was effective 6 months after Jan. 6, 1988, see section 1001(b) of Pub. L. 100–399, set out as a note under section 2002 of this title.Farm Credit System Reform Act of 1996
Pub. L. 104–105 § 202(b) · 110 Stat. 162
Substituted · 12 U.S.C. § 2018(a)(1)(A)
Pub. L. 104–105, § 202(b), substituted “subparagraphs (C) and (D)” for “paragraphs (2) and (3)”
Source evidence
Code amendment note
Subsec. (a)(1)(A). Pub. L. 104–105, § 202(b), substituted “subparagraphs (C) and (D)” for “paragraphs (2) and (3)”.Enacted provision · exact public law section
(b) Conforming Amendment.— Section 1.10(a)(1)(A) of the Farm Credit Act of 1971 (12 U.S.C. 2018(a)(1)(A)) is amended by striking “paragraphs (2) and (3)” and inserting “subparagraphs (C) and (D)”.Farm Credit System Reform Act of 1996
Pub. L. 104–105 § 202(a) · 110 Stat. 162
Added · 12 U.S.C. § 2018(a)(1)(D)
Pub. L. 104–105, § 202(a), added subpar. (D)
Source evidence
Code amendment note
Subsec. (a)(1)(D). Pub. L. 104–105, § 202(a), added subpar. (D).Enacted provision · exact public law section
(a) In General.— Section 1.10(a)(1)) of the Farm Credit Act of 1971 (12 U.S.C. 2018(a)(1)) is amended by adding at the end the following: “(D) Private mortgage insurance.— A loan on which private mortgage insurance is obtained may exceed 85 percent of the appraised value of the real estate security to the extent that the loan amount in excess of such 85 percent is covered by the insurance.”.Farm Credit System Reform Act of 1996
Pub. L. 104–105 § 203 · 110 Stat. 162
Struck · 12 U.S.C. § 2018(a)(5)
Pub. L. 104–105, § 203, struck out heading and text of par. (5). Text read as follows: “Each Farm Credit Bank shall require a financial statement from each borrower at least once every 3 years, or during such shorter period of time as may be required under regulations of the Farm Credit Administration.”
Source evidence
Code amendment note
Subsec. (a)(5). Pub. L. 104–105, § 203, struck out heading and text of par. (5). Text read as follows: “Each Farm Credit Bank shall require a financial statement from each borrower at least once every 3 years, or during such shorter period of time as may be required under regulations of the Farm Credit Administration.”Enacted provision · exact public law section
SEC. 203. REMOVAL OF CERTAIN BORROWER REPORTING REQUIREMENT. Section 1.10(a) of the Farm Credit Act of 1971 (12 U.S.C. 2018(a)) is amended by striking paragraph (5).
8 of 8 references resolved to an enrolled provision
Editorial Notes
Prior Provisions
A prior section 2018, Pub. L. 92–181, title I, § 1.10, , 85 Stat. 586; Pub. L. 96–592, title I, § 107, , 94 Stat. 3438, related to purposes, prior to the general amendment of this subchapter by Pub. L. 100–233, § 401.
Amendments1988–1996 · 2 rounds
1996
Subsec. (a)(1)(A). Pub. L. 104–105, § 202(b), substituted “subparagraphs (C) and (D)” for “paragraphs (2) and (3)”.
Subsec. (a)(1)(D). Pub. L. 104–105, § 202(a), added subpar. (D).
Subsec. (a)(5). Pub. L. 104–105, § 203, struck out heading and text of par. (5). Text read as follows: “Each Farm Credit Bank shall require a financial statement from each borrower at least once every 3 years, or during such shorter period of time as may be required under regulations of the Farm Credit Administration.”
1988
Subsec. (a)(2). Pub. L. 100–399, § 401(h)(1), substituted “prescribed by regulations of” for “approved by”.
Subsec. (a)(3). Pub. L. 100–399, § 401(h)(2), substituted “under standards” for “under appraisal standards” and “in accordance with regulations of” for “and approved by”.
Subsec. (b). Pub. L. 100–399, § 401(i), substituted “harvesters of aquatic products) from” for “harvester of aquatic products) from”.
Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment
Amendment by Pub. L. 100–399 effective immediately after amendment made by section 401 of Pub. L. 100–233, which was effective 6 months after , see section 1001(b) of Pub. L. 100–399, set out as a note under section 2002 of this title.
Effective Date
Pub. L. 100–233, title IV, § 401, , 101 Stat. 1622, provided that this section is effective 6 months after .
Credits
1988–1996 · 3 acts
- 1988Pub. L. 92–181, title I, § 1.10, as added Pub. L. 100–233, title IV, § 401, , 101 Stat. 1627
- 1988amended Pub. L. 100–399, title IV, § 401(h), (i), , 102 Stat. 996
- 1996Pub. L. 104–105, title II, §§ 202, 203, , 110 Stat. 172.
Show as published
(Pub. L. 92–181, title I, § 1.10, as added Pub. L. 100–233, title IV, § 401, , 101 Stat. 1627; amended Pub. L. 100–399, title IV, § 401(h), (i), , 102 Stat. 996; Pub. L. 104–105, title II, §§ 202, 203, , 110 Stat. 172.)