§ 2023. Taxation

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.

1. 1988

   Farm Credit Act of 1971

   Pub. L. 92–181 title I § 1 · 85 Stat. 583

   Enacted · 12 U.S.C. § 2023

   Pub. L. 92–181, title I, § 1.15, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1629

   Source evidence

   Code source credit
   Pub. L. 92–181, title I, § 1.15, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1629

   Enacted provision · exact public law section
   (1) Adopt and use a corporate seal.

2. 1988

   Agricultural Credit Technical Corrections Act of 1988

   Pub. L. 100–399 title IV § 401 · 102 Stat. 989

   1. Inserted · 12 U.S.C. § 2023

      Pub. L. 100–399 inserted a comma after “therefrom”

   2. Substituted · 12 U.S.C. § 2023

      Pub. L. 100–399 substituted “3124” for “742(a)”

   Source evidence

   Code amendment note
   Pub. L. 100–399 inserted a comma after “therefrom” and substituted “3124” for “742(a)”.

   Enacted provision · exact public law section
   SEC. 401. AMENDMENTS RELATED TO SECTION 401 OF THE 1987 ACT. (a) Section 1.3(a) is amended by inserting “, as provided in section 12 USC 2011. 410 of the Agricultural Credit Act of 1987, before “shall”. (b) Section 1.3(b) is amended to read as follows: “(b) Charters.— The Farm Credit Administration shall, consistent with this Act, issue charters for, and approve amendments to charters of, the Farm Credit Banks.”. (c) Section 1.4 is amended by striking out “from its voting 12 USC 2012. stockholders”. (d) Section 1.5 is amended— (1) by amending paragraph (9) to read as follows: “(9) prescribe, by its board of directors, its bylaws that shall be consistent with law, and that shall provide for— “(A) the classes of its stock and the manner in which such stock shall be issued, transferred, and retired; and “(B) the manner in which it is to— “(i) select officers, employees, and agents; “(ii) acquire, hold, and transfer property; “(iii) make loans and discounts; “(iv) conduct general business; and “(v) exercise and enjoy the privileges granted to it by law;”; (2) in paragraph (11), by striking out “or securities of” and inserting in lieu thereof “of securities or”; (3) in subparagraphs (B) and (C) of paragraph (12), by striking out “participate with”; (4) in paragraph (14), by striking out “as defined in section 3 of the Federal Deposit Insurance Act” and inserting in lieu thereof “(within the meaning of section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813))”; (5) in paragraph (18), by striking out “Federal land bank”; (6) in paragraph (22), by striking out “as authorized by the Farm Credit Administration; and” and inserting in lieu thereof 1“in accordance with generally accepted accounting principles, except as may be authorized by the Farm Credit Administration;”; (7) in paragraph (23)— (A) by striking out “and approved by the Farm Credit Administration Board”; and (B) by striking out the period at the end and inserting in lieu thereof “; and”; and (8) by adding at the end the following: “(24) operate as an originator and become certified as a certified facility under title VIII.”. (e) Section 1.7(a) is amended to read as follows: 12 USC 2015. “(a) Real Estate Loans and Related Assistance.— (1) Real estate loans.— The Farm Credit Banks may make or participate with other lenders in long-term real estate mort-gage loans in rural areas, as defined by the Farm Credit Administration, or to producers or harvesters of aquatic products, and make continuing commitments to make such loans under specified circumstances, for a term of not less than 5 nor more than 40 years. “(2) Financial assistance.— The Farm Credit Banks may provide and extend financial assistance to, and discount for, or purchase from, a 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, as authorized under section 7.6(a).”. (f) Section 1.7(b) is amended— (1) in paragraph (2), by striking out the second sentence; (2) in paragraph (3)— (A) in the heading, by striking out “assistance” and inserting in lieu thereof “services”; and (B) in subparagraph (B), by striking out “herein contained” and inserting in lieu thereof “described in subparagraph (A)”; and (3) in paragraph (4)(A), by striking out “section” and inserting in lieu thereof “subsection”. (g) Section 1.8(a) is amended by striking out “interest at a rate or rates, and” and inserting in lieu thereof “such rate or rates of interest or discount, and be”. (h) Section 1.10(a) is amended— (1) in paragraph (2), by striking out “approved by” and inserting in lieu thereof “prescribed by regulations of”; and (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”. (i) Section 1.10(b) is amended by striking out “harvester” and inserting in lieu thereof “harvesters”. (j) Section 1.11(c)(2) is amended— (1) by inserting “equipment or” before “facilities”; and (2) by inserting “or title II” after “title”. (k) Section 1.12 is amended— (1) by inserting “(a) In General.—” before “The Farm Credit Banks”; (2) by striking out “each district” and inserting in lieu thereof “the”; and (3) by adding at the end the following new subsection: “(b) Authority to Pass Along Cost of Insurance Premiums.— Each Farm Credit Bank may assess each production credit association and other financing institution described in section 1.7(b)(1)(B) in the district in which the bank is located to cover the costs of making premium payments under part E of title V. The assessment on any such association or other financing institution for any calendar year shall be computed on the same basis as is used to compute the premium payment and shall not exceed the sum of— “(1) the annual average principal outstanding for such year on loans made by the association, or on loans made by the other financing institution and discounted with the Farm Credit Bank, that are in accrual status, multiplied by 0.0015; and “(2) the annual average principal outstanding for such year on loans made by the association, or on loans made by the other financing institution and discounted with the Farm Credit Bank, that are in nonaccrual status, multiplied by 0.0025.”. (l) Section 1.15 is amended— (1) by inserting a comma after “therefrom” the first place it appears; and (2) by striking out “742(a)” and inserting in lieu thereof “3124”. (m) Section 2.0(b) is amended— (1) in paragraph (1), by striking out “title” and inserting in lieu thereof “subtitle”; (2) in paragraph (3)(B), by striking out “part” and inserting in lieu thereof “subtitle”; (3) in subparagraphs (B) and (C) of paragraph (3), by striking out “the” the first place it appears; and (4) in paragraph (8)— (A) by striking out “or by approval of bylaws of the association”; and (B) by amending subparagraph (D) to read as follows: “(D) approve amendments to the charter of the association.”. (n) Section 2.1 is amended by striking out the sixth comma. (o) Section 2.2 is amended— (1) by amending paragraph (16) to read as follows: “(16) prescribe, by its board of directors, its bylaws that shall be consistent with law, and that shall provide for— “(A) the classes of its stock and the manner in which such stock shall be issued, transferred, and retired; and “(B) the manner in which it is to— “(i) select officers and employees; “(ii) acquire, hold, and transfer property; “(iii) conduct general business; and “(iv) exercise and enjoy the privileges granted to it by law;”; (2) in paragraph (17)— (A) by striking out “elect by the board of directors of the association” and insert in lieu thereof “provide by its board of directors for”; and (B) by striking out “be elected or designated” and inserting in lieu thereof “serve as”; (3) in paragraph (19), by striking out “and”; (4) in paragraph (20), by striking out the period and inserting in lieu thereof “; and”; and (5) by adding at the end the following: “(21) operate as an originator and become certified as a certified facility under title VIII.”. (p) Section 2.4(b)(1) is amended— (1) by striking out “title” and inserting in lieu thereof “subtitle”; 12 USC 2075. and (2) by inserting “or” before “planned”. (q) Section 2.4 is amended by adding at the end the following: “(d) Special District Rule.— “(1) Provision of credit and technical assistance outside service territory.— Notwithstanding any territorial limitation in the charter of a production credit association located in a district in which there are only two such associations, the Farm Credit Administration Board, on request of such association, may permit such association to provide credit and technical assistance to any borrower who is denied credit by the other production credit association in the district if the Board determines that such other production credit association in the district is unduly restrictive in the application of credit standards. “(2) Timing of determination.— If the Farm Credit Administration Board approves the extension of credit and technical assistance under paragraph (1), the association shall approve or deny the application for credit within 90 days after receipt of the application from the borrower.”. (r) Section 2.6 is amended— (1) by inserting a comma after “interest”; and (2) by inserting “, except that interest on such obligations shall be subject to Federal income taxation in the hands of the holder” before the period. (s) Section 2.10(b) is amended— (1) in paragraph (1), by inserting “under section 1.7(a)” before the first comma; and (2) by amending paragraph (2)(D)(i) to read as follows: “(i) the individual’s eligibility and request for a Farm Credit Bank loan;”. (t) Section 2.10(c) is amended to read as follows: “(c) FCA Authority on Organization.— The Farm Credit Administration shall have power, in the terms of the charter, under rules and regulations prescribed by the Farm Credit Administration— “(1) to provide for the organization of the association; “(2) to provide for the initial amount of stock of the association; “(3) to provide for the territory within which the association may carry on its operations; and “(4) to approve amendments to the charter of such association.”. (u) Section 2.12 is amended— (1) in paragraph (7)— (A) by striking out “elect by its board of directors” and insert in lieu thereof “provide by its board of directors for”; and (B) by striking out “be elected or designated” and inserting in lieu thereof “serve as”; (2) by amending paragraph (8) to read as follows: “(8) prescribe, by its board of directors, its bylaws that shall be consistent with law, and that shall provide for— “(A) the classes of its stock and the manner in which such stock shall be issued, transferred, and retired; and “(B) the manner in which it is to— “(i) select officers and employees; “(ii) acquire, hold, and transfer property; “(iii) conduct general business; and “(iv) exercise and enjoy the privileges granted to it by law;”; (3) in paragraph (12), by striking out “or delegated to” and inserting in lieu thereof “by”; (4) in paragraph (20), by striking out “and”; (5) in paragraph (21), by striking out the period and inserting in lieu thereof and”; and (6) by adding at the end the following: “(22) operate as an originator and become certified as a certified facility under title VIII.”. (v) Section 2.14 is hereby repealed, and the Farm Credit Act of 12 USC 2095 and note. 1971 shall be applied and administered as if such section had not been enacted. (w) Title II is amended by redesignating sections 2.15, 2.16, and 12 USC 2090–2098. 2.17, as sections 2.14, 2.15, and 2.16, respectively. (x) Section 2.16, as so redesignated, is amended— (1) by inserting a comma after “therefrom” the first place it appears; (2) by striking out “banks” and inserting in lieu thereof “associations”; and (3) by striking out “742(a)” and inserting in lieu thereof “3124”.

   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.

3 of 3 references resolved to an enrolled provision