§ 2128. Loans, commitments, and technical and financial assistance

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. 1971

   Farm Credit Act of 1971

   Pub. L. 92–181 title III § 3 · 85 Stat. 583

   Enacted · 12 U.S.C. § 2128

   Pub. L. 92–181, title III, § 3.7, Dec. 10, 1971, 85 Stat. 605

   Source evidence

   Code source credit
   Pub. L. 92–181, title III, § 3.7, Dec. 10, 1971, 85 Stat. 605

   Enacted provision · exact public law section
   (3) Make contracts.

2. 1980

   Farm Credit Act Amendments of 1980

   Pub. L. 96–592 title III § 304 · 94 Stat. 3437

   1. Amended · 12 U.S.C. § 2128

      Pub. L. 96–592 designated existing provisions as subsec. (a)

   2. Inserted · 12 U.S.C. § 2128

      Pub. L. 96–592 inserted provisions relating to currency exchanges and provisions relating to loans, etc., to domestic parties

   3. Added · 12 U.S.C. § 2128

      Pub. L. 96–592 added subsecs. (b) to (e)

   Source evidence

   Code amendment note
   Pub. L. 96–592 designated existing provisions as subsec. (a), inserted provisions relating to currency exchanges and provisions relating to loans, etc., to domestic parties, and added subsecs. (b) to (e).

   Enacted provision · exact public law section
   Sec. 304. Section 3.7 of the Farm Credit Act of 1971 is amended by— (1) adding the designation “(a)” before the text, and inserting before “collateral custody” in the first sentence, “currency exchange necessary to service individual transactions that may be financed under subsection (b) of this section,”, and inserting before the period at the end of the third sentence “and may make or participate in loans or commitments and extend other technical and financial assistance to other domestic parties for the acquisition of equipment and facilities to be leased to such stockholders for use in their operations in the United States”; and (2) adding new subsections (b), (c), (d), and (e) as follows: “(b) A bank for cooperatives is authorized to make or participate in loans and commitments to, and to extend other technical and financial assistance to (1) a domestic or foreign party with respect to its transactions with an association that is a voting stockholder of the bank for the export or import of agricultural commodities, farm supplies, or aquatic products through purchases, sales or exchanges, and (2) a domestic or foreign party in which such an association has at least the minimum ownership interest approved under regulations of the Farm Credit Administration for the purpose of facilitating the association’s export or import operations or the type described in clause (1) of this subsection: Provided, That a bank for cooperatives determines, under regulations of the Farm Credit Administration, that the voting stockholder will benefit substantially as a result of such loan, commitment, or assistance. “(c) Loans, commitments, and assistance authorized by subsection (b) of this section shall be extended in accordance with policies adopted by the board of directors of the bank under regulations of the Farm Credit Administration. “(d) The regulations of the Farm Credit Administration implementing subsection (b) of this section and the other provisions of this title relating to the authority under subsection (b) of this section may not confer upon the banks for cooperatives powers and authorities greater than those specified in this title. The Farm Credit Administration shall, during the formulation of such regulations, closely consult on a continuing basis with the Board of Governors of the Federal Reserve System to ensure that such regulations conform to national banking policies, objectives, and limitations. “(e) Notwithstanding any other provision of this title, the banks for cooperatives shall not make or participate in loans or commitments for the purpose of financing speculative futures transactions by eligible borrowers in foreign currencies.”.

3. 1990

   Rural Economic Development Act of 1990

   Pub. L. 101–624 title XXIII § 2323(a) · 104 Stat. 3359

   Added · 12 U.S.C. § 2128(f)

   Pub. L. 101–624 added subsec. (f)

   Source evidence

   Code amendment note
   Subsec. (f). Pub. L. 101–624 added subsec. (f).

   Enacted provision · exact public law section
   (a) Authorization.— Section 3.7 of the Farm Credit Act of 1971 (12 U.S.C. 2128) is amended by adding at the end the following new subsection: “(f) The banks for cooperatives may, for the purpose of the installation, expansion, or improvement of water and waste disposal facilities in rural areas, make and participate in loans and commitments and to extend other technical and financial assistance to— “(1) cooperatives formed specifically for the purpose of establishing or operating such facilities; and “(2) public and quasi-public agencies and bodies, and other public and private entities that, under authority of State or local law, establish or operate such facilities. For purposes of this subsection, the term ‘rural area’ means all territory of a State that is not within the outer boundary of any city or town having a population of more than 20,000 based on the latest decennial census of the United States.”.

4. 1991

   Pub. L. 102–237 title V § 502(e)(1) · 105 Stat. 1818

   1. Amended · 12 U.S.C. § 2128(b)

      Pub. L. 102–237 designated existing provisions as par. (1)

   2. Redesignated · 12 U.S.C. § 2128(b)

      Pub. L. 102–237 redesignated cl. (1) as (A)

   3. Inserted · 12 U.S.C. § 2128(b)

      Pub. L. 102–237 inserted “or products thereof” after “commodities”

   4. Redesignated · 12 U.S.C. § 2128(b)

      Pub. L. 102–237 redesignated cl. (2) as (B)

   5. Substituted · 12 U.S.C. § 2128(b)

      Pub. L. 102–237 substituted “subparagraph (A)” for “clause (1) of this subsection”

   6. Added · 12 U.S.C. § 2128(b)

      Pub. L. 102–237 added pars. (2) and (3)

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 102–237 designated existing provisions as par. (1), redesignated cl. (1) as (A) and inserted “or products thereof” after “commodities”, redesignated cl. (2) as (B) and substituted “subparagraph (A)” for “clause (1) of this subsection”, and added pars. (2) and (3).

   Enacted provision · exact public law section
   (1) In general.— Section 3.7(b) of such Act (12 U.S.C. 2128(b)) is amended— (A) by inserting “(1)” after the subsection designation; (B) by striking “(1) a domestic” and inserting “(A) a domestic”; (C) by inserting “or products thereof” after “commodities”; (D) by striking “(2) a domestic” and inserting “(B) a domestic”; (E) by striking “clause (1) of this subsection” and inserting “subparagraph (A)”; and (F) by adding at the end the following new paragraphs:

5. 1992

   Farm Credit Banks and Associations Safety and Soundness Act of 1992

   Pub. L. 102–552 § 504 · 106 Stat. 4102

   Inserted · 12 U.S.C. § 2128(a)

   Pub. L. 102–552, § 504, inserted “at any time (whether or not they have a loan from the bank outstanding)” after “assistance” in first sentence

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 102–552, § 504, inserted “at any time (whether or not they have a loan from the bank outstanding)” after “assistance” in first sentence.

   Enacted provision · exact public law section
   SEC. 504. TECHNICAL AMENDMENT. The first sentence of section 3.7(a) (12 U.S.C. 2128(a)) is amended by inserting “at any time (whether or not they have a loan from the bank outstanding)” after “technical and financial assistance”.

6. 1992

   Farm Credit Banks and Associations Safety and Soundness Act of 1992

   Pub. L. 102–552 § 505 · 106 Stat. 4102

   1. Substituted · 12 U.S.C. § 2128(f)

      Pub. L. 102–552, § 505, in introductory provisions, substituted “installing, maintaining, expanding, improving, or operating” for “the installation, expansion, or improvement of”

   2. Substituted · 12 U.S.C. § 2128(f)

      Pub. L. 102–552, § 505, in introductory provisions, substituted “extending” for “to extend”

   Source evidence

   Code amendment note
   Subsec. (f). Pub. L. 102–552, § 505, in introductory provisions, substituted “installing, maintaining, expanding, improving, or operating” for “the installation, expansion, or improvement of” and “extending” for “to extend”.

   Enacted provision · exact public law section
   SEC. 505. EXPANSION OF WATER AND SEWER LENDING AUTHORITY OF BANKS FOR COOPERATIVES. Section 3.7(f) (12 U.S.C. 2128(f)) is amended— (1) by striking “the installation, expansion, or improvement of” and inserting “installing, maintaining, expanding, improving, or operating”; and (2) by striking “to extend” and inserting “extending”.

7. 1994

   Farm Credit System Agricultural Export and Risk Management Act

   Pub. L. 103–376 § 3(A) · 108 Stat. 3497

   1. Substituted · 12 U.S.C. § 2128(b)(1)

      Pub. L. 103–376, § 3(A), substituted “assistance to” for “assistance to (A)”

   2. Substituted · 12 U.S.C. § 2128(b)(1)

      Pub. L. 103–376, § 3(A), substituted “bank for the import” for “bank for the export or import”

   3. Substituted · 12 U.S.C. § 2128(b)(1)

      Pub. L. 103–376, § 3(A), substituted “if the bank for cooperatives” for “and (B) a domestic or foreign party in which such an association has at least the minimum ownership interest approved under regulations of the Farm Credit Administration for the purpose of facilitating the association’s export or import operations of the type described in subparagraph (A): Provided, That a”

   Source evidence

   Code amendment note
   Subsec. (b)(1). Pub. L. 103–376, § 3(A), substituted “assistance to” for “assistance to (A)”, “bank for the import” for “bank for the export or import”, and “if the bank for cooperatives” for “and (B) a domestic or foreign party in which such an association has at least the minimum ownership interest approved under regulations of the Farm Credit Administration for the purpose of facilitating the association’s export or import operations of the type described in subparagraph (A): Provided, That a”.

   Enacted provision · exact public law section
   (A) in paragraph (1)— (i) by striking “assistance to (A)” and inserting “assistance to”; (ii) by striking “the export or” and inserting “the”; and (iii) by striking “and (B)” and all that follows through “subparagraph (A): Provided, That a” and inserting “if the”; and

8. 1994

   Farm Credit System Agricultural Export and Risk Management Act

   Pub. L. 103–376 § 3(B) · 108 Stat. 3497

   1. Added · 12 U.S.C. § 2128(b)(2)

      Pub. L. 103–376, § 3(B), added par. (2)

   2. Struck · 12 U.S.C. § 2128(b)(2)

      Pub. L. 103–376, § 3(B), struck out former par. (2) which read as follows: “A bank for cooperatives is authorized to make or participate in loans and commitments, and to extend other technical and financial assistance, to any domestic or foreign entity that is eligible for a guarantee or insurance as described in subparagraphs (A) and (B) with respect to transactions involving the Soviet Union (its successor entities or any of the individual republics of the Soviet Union) or an emerging democracy (as defined in section 1542(f) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5622 note)) for the export of agricultural commodities and products thereof from the United States, including (where applicable) the cost of freight, if in each case—

   Source evidence

   Code amendment note
   Subsec. (b)(2). Pub. L. 103–376, § 3(B), added par. (2) and struck out former par. (2) which read as follows: “A bank for cooperatives is authorized to make or participate in loans and commitments, and to extend other technical and financial assistance, to any domestic or foreign entity that is eligible for a guarantee or insurance as described in subparagraphs (A) and (B) with respect to transactions involving the Soviet Union (its successor entities or any of the individual republics of the Soviet Union) or an emerging democracy (as defined in section 1542(f) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5622 note)) for the export of agricultural commodities and products thereof from the United States, including (where applicable) the cost of freight, if in each case—

   “(A) the loan involved is unconditionally guaranteed or insured by a department, agency, bureau, board, commission, or establishment of the United States or any corporation wholly owned directly or indirectly by the United States; and “(B) the guarantee or insurance— “(i) covers at least 95 percent of the amount loaned for the purchase of the commodities or products; and “(ii) is issued on or before September 30, 1995.”

   Enacted provision · exact public law section
   (B) by striking paragraph (2) and inserting the following new paragraph: “(2) (A) A bank for cooperatives may make or participate in loans and commitments to, and extend other technical and financial assistance to— “(i) any domestic or foreign party for the export, including (where applicable) the cost of freight, of agricultural commodities or products thereof, farm supplies, or aquatic products from the United States under policies and procedures established by the bank to ensure that the commodities, products, or supplies are originally sourced, where reasonably available, from one or more eligible cooperative associations described in section 3.8(a) on a priority basis, except that if the total amount of the balances outstanding on loans made by a bank under this clause that— “(I) are made to finance the export of commodities, products, or supplies that are not originally sourced from a cooperative, and “(II) are not guaranteed or insured, in an amount equal to at least 95 percent of the amount loaned, by a department, agency, bureau, board, commission, or establishment of the United States or a corporation wholly-owned directly or indirectly by the United States, exceeds an amount that is equal to 50 percent of the bank’s capital, then a sufficient interest in the loans shall be sold by the bank for cooperatives to commercial banks and other non-System lenders to reduce the total amount of such outstanding balances to an amount not greater than an amount equal to 50 percent of the bank’s capital; and “(ii) except as provided in subparagraph (B), any domestic or foreign party in which an eligible cooperative association described in section 3.8(a) (including, for the purpose of facilitating its domestic business operations only, a cooperative or other entity described in section 3.8(b)(1)(A)) has an ownership interest, for the purpose of facilitating the domestic or foreign business operations of the association, except that if the ownership interest by an eligible cooperative association, or associations, is less than 50 percent, the financing shall be limited to the percentage held in the party by the association or associations. “(B) A bank for cooperatives shall not use the authority provided in subparagraph (A)(ii) to provide financial assistance to a party for the purpose of financing the relocation of a plant or facility from the United States to another country.”.

9. 2002

   Pub. L. 107–171 § 5402(1) · 116 Stat. 134

   Substituted · 12 U.S.C. § 2128(b)(1); 12 U.S.C. § 2128(2)(A)(i)

   Pub. L. 107–171, § 5402(1), substituted “agricultural supplies” for “farm supplies”

   Source evidence

   Code amendment note
   Subsec. (b)(1), (2)(A)(i). Pub. L. 107–171, § 5402(1), substituted “agricultural supplies” for “farm supplies”.

   Enacted provision · exact public law section
   (1) in paragraphs (1) and (2)(A)(i), by striking “farm supplies” each place it appears and inserting “agricultural supplies”; and

10. 2002

    Pub. L. 107–171 § 5402(2) · 116 Stat. 134

    Added · 12 U.S.C. § 2128(b)(4)

    Pub. L. 107–171, § 5402(2), added par. (4)

    Source evidence

    Code amendment note
    Subsec. (b)(4). Pub. L. 107–171, § 5402(2), added par. (4).

    Enacted provision · exact public law section
    (2) by adding at the end the following: “(4) Definition of agricultural supply.— In this subsection, the term ‘agricultural supply’ includes— “(A) a farm supply; and “(B) (i) agriculture-related processing equipment; “(ii) agriculture-related machinery; and “(iii) other capital goods related to the storage or handling of agricultural commodities or products.”.

11. 2018

    Agriculture Improvement Act of 2018

    Pub. L. 115–334 title V § 5411(7) · 132 Stat. 4490

    Struck · 12 U.S.C. § 2128(a)

    Pub. L. 115–334 struck out “Such regulations may include provisions for avoiding duplication between the Central Bank and district banks for cooperatives.” before “Each bank may own”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 115–334 struck out “Such regulations may include provisions for avoiding duplication between the Central Bank and district banks for cooperatives.” before “Each bank may own”.

    Enacted provision · exact public law section
    (7) Section 3.7(a) of the Farm Credit Act of 1971 (12 U.S.C. 2128(a)) is amended by striking the second sentence.

22 of 22 references resolved to an enrolled provision