Title 12 — Banks and Banking
Part A · Chapter 23 — Farm Credit System
§ 2153. Power to borrow; issuance of notes, bonds, debentures, and other obligations
Statutory text
Each of the banks of the System, in order to obtain funds for its authorized purposes, shall have power, subject to regulation by the Farm Credit Administration, and subject to the limitations of paragraph (e) of this section, to—
Borrow money from or loan to any other institution of the System, borrow from any commercial bank or other lending institution, issue its notes or other evidence of debt on its own individual responsibility and full faith and credit, and invest its excess funds in such sums, at such times, and on such terms and conditions as it may determine.
Issue its own notes, bonds, debentures, or other similar obligations, fully collateralized as provided in section 2154(c) of this title by the notes, mortgages, and security instruments it holds in the performance of its functions under this chapter in such sums, maturities, rates of interest, and terms and conditions of each issue as it may determine with approval of the Farm Credit Administration.
Join with any or all banks organized and operating under the same subchapter of this chapter in borrowing or in issuance of consolidated notes, bonds, debentures, or other obligations as may be agreed with approval of the Farm Credit Administration.
Join with other banks of the System in issuance of System-wide notes, bonds, debentures, and other obligations in the manner, form, amounts, and on such terms and conditions as may be agreed upon with approval of the Farm Credit Administration. Such System-wide issue by the participating banks and such participations by each bank shall not exceed the limits to which each such bank is subject in the issuance of its individual or consolidated obligations and each such issue shall be subject to approval of the Farm Credit Administration: Provided, however, There shall be no issues of System-wide obligations without the concurrence of the boards of directors of each bank and the approval of the Farm Credit Administration for such issues shall be conditioned on and be evidence of the compliance with this provision.
No bank or banks shall issue notes, bonds, debentures, or other obligations individually or in concert with one or more banks of the System other than through the Federal Farm Credit Banks Funding Corporation under any provision of this chapter except under subsection (a) of this section: Provided, That any bank or banks may issue investment bonds or like obligations other than through the Federal Farm Credit Banks Funding Corporation if the interest rate is not in excess of the interest allowable on savings deposits of commercial banks of comparable amounts and maturities under Federal Reserve regulation on its member banks.
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 IV § 4 · 85 Stat. 583
Enacted · 12 U.S.C. § 2153
Pub. L. 92–181, title IV, § 4.2, Dec. 10, 1971, 85 Stat. 610
Source evidence
Code source credit
Pub. L. 92–181, title IV, § 4.2, Dec. 10, 1971, 85 Stat. 610Enacted provision · exact public law section
(4) Sue and be sued.Farm Credit Amendments Act of 1985
Pub. L. 99–205 title II § 205(f)(1) · 99 Stat. 1678
Substituted · 12 U.S.C. § 2153
Pub. L. 99–205 substituted “regulation by” for “supervision of” in provision preceding subsec. (a)
Source evidence
Code amendment note
Pub. L. 99–205 substituted “regulation by” for “supervision of” in provision preceding subsec. (a).Enacted provision · exact public law section
(1) in section 4.2— 12 USC 2153. (A) in the matter preceding subsection (a), striking out “supervision of’ and inserting in lieu thereof “regulation by”; (B) in subsection (b)— (i) striking out “4.3(b)” and inserting in lieu thereof “4.3(c)”; and (ii) striking out “Governor” and inserting in lieu thereof “Farm Credit Administration”; (C) in subsection (c), striking out “Governor” and inserting in lieu thereof “Farm Credit Administration”; and (D) in subsection (d)— (i) striking out “Governor” in the first sentence and inserting in lieu thereof “Farm Credit Administration”; and (ii) in the second sentence, striking out “Governor” each place it appears and inserting in lieu thereof “Farm Credit Administration”;Farm Credit Amendments Act of 1985
Pub. L. 99–205 title II § 205(f)(1) · 99 Stat. 1678
Substituted · 12 U.S.C. § 2153(b)
Pub. L. 99–205 substituted references to section “2154(c)” for “2154(b)”
Substituted · 12 U.S.C. § 2153(b)
Pub. L. 99–205 substituted references to section “Farm Credit Administration” for “Governor”
Source evidence
Code amendment note
Subsec. (b). Pub. L. 99–205 substituted references to section “2154(c)” for “2154(b)” and “Farm Credit Administration” for “Governor”.Enacted provision · exact public law section
(1) in section 4.2— 12 USC 2153. (A) in the matter preceding subsection (a), striking out “supervision of’ and inserting in lieu thereof “regulation by”; (B) in subsection (b)— (i) striking out “4.3(b)” and inserting in lieu thereof “4.3(c)”; and (ii) striking out “Governor” and inserting in lieu thereof “Farm Credit Administration”; (C) in subsection (c), striking out “Governor” and inserting in lieu thereof “Farm Credit Administration”; and (D) in subsection (d)— (i) striking out “Governor” in the first sentence and inserting in lieu thereof “Farm Credit Administration”; and (ii) in the second sentence, striking out “Governor” each place it appears and inserting in lieu thereof “Farm Credit Administration”;Farm Credit Amendments Act of 1985
Pub. L. 99–205 title II § 205(f)(1) · 99 Stat. 1678
Substituted · 12 U.S.C. § 2153(c); 12 U.S.C. § 2153(d)
Pub. L. 99–205 substituted “Farm Credit Administration” for “Governor” wherever appearing
Source evidence
Code amendment note
Subsecs. (c), (d). Pub. L. 99–205 substituted “Farm Credit Administration” for “Governor” wherever appearing.Enacted provision · exact public law section
(1) in section 4.2— 12 USC 2153. (A) in the matter preceding subsection (a), striking out “supervision of’ and inserting in lieu thereof “regulation by”; (B) in subsection (b)— (i) striking out “4.3(b)” and inserting in lieu thereof “4.3(c)”; and (ii) striking out “Governor” and inserting in lieu thereof “Farm Credit Administration”; (C) in subsection (c), striking out “Governor” and inserting in lieu thereof “Farm Credit Administration”; and (D) in subsection (d)— (i) striking out “Governor” in the first sentence and inserting in lieu thereof “Farm Credit Administration”; and (ii) in the second sentence, striking out “Governor” each place it appears and inserting in lieu thereof “Farm Credit Administration”;Agricultural Credit Act of 1987
Pub. L. 100–233 title IV § 418(b) · 101 Stat. 1568
Substituted · 12 U.S.C. § 2153(d)
Pub. L. 100–233 substituted “the boards of directors of each bank” for “the boards of directors of each of the 12 districts and the Central Bank for Cooperatives”
Source evidence
Code amendment note
Subsec. (d). Pub. L. 100–233 substituted “the boards of directors of each bank” for “the boards of directors of each of the 12 districts and the Central Bank for Cooperatives”.Effective date note
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.Agricultural Credit Technical Corrections Act of 1988
Pub. L. 100–399 § 203(e) · 102 Stat. 989
Substituted · 12 U.S.C. § 2153(e)
Pub. L. 100–399, § 203(e), substituted “System other than through the” for “System other than through their”
Substituted · 12 U.S.C. § 2153(e)
Pub. L. 100–399, § 203(e), substituted “Federal Farm Credit Banks Funding Corporation” for “fiscal agent” in two places
Source evidence
Code amendment note
Subsec. (e). Pub. L. 100–399, § 203(e), substituted “System other than through the” for “System other than through their”, and substituted “Federal Farm Credit Banks Funding Corporation” for “fiscal agent” in two places.Enacted provision · exact public law section
(e) Section 4.2(e) is amended— (1) by striking out “their” and inserting in lieu thereof “the”; and (2) by striking out “fiscal agent” each place it appears and inserting in lieu thereof “Federal Farm Credit Banks Funding Corporation”.Effective date note
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.
7 of 8 references resolved to an enrolled provision · 1 partial
Editorial Notes
Amendments1985–1988 · 2 rounds
1988
Subsec. (d). Pub. L. 100–233 substituted “the boards of directors of each bank” for “the boards of directors of each of the 12 districts and the Central Bank for Cooperatives”.
Subsec. (e). Pub. L. 100–399, § 203(e), substituted “System other than through the” for “System other than through their”, and substituted “Federal Farm Credit Banks Funding Corporation” for “fiscal agent” in two places.
1985
Pub. L. 99–205 substituted “regulation by” for “supervision of” in provision preceding subsec. (a).
Subsec. (b). Pub. L. 99–205 substituted references to section “2154(c)” for “2154(b)” and “Farm Credit Administration” for “Governor”.
Subsecs. (c), (d). Pub. L. 99–205 substituted “Farm Credit Administration” for “Governor” wherever appearing.
Statutory Notes and Related Subsidiaries
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 , see section 1001(a) of Pub. L. 100–399, set out as a note under section 2002 of this title.
Effective Date of 1985 Amendment
Amendment by Pub. L. 99–205 effective thirty days after , see section 401 of Pub. L. 99–205, set out as a note under section 2001 of this title.
Credits
1971–1988 · 4 acts
- 1971Pub. L. 92–181, title IV, § 4.2, , 85 Stat. 610
- 1985Pub. L. 99–205, title II, § 205(f)(1), , 99 Stat. 1705
- 1988Pub. L. 100–233, title IV, § 418(b), formerly § 415(b), , 101 Stat. 1653, renumbered § 418(b), Pub. L. 100–399, title IV, § 409(a), , 102 Stat. 1003
- 1988Pub. L. 100–399, title II, § 203(e), , 102 Stat. 993.
Show as published
(Pub. L. 92–181, title IV, § 4.2, , 85 Stat. 610; Pub. L. 99–205, title II, § 205(f)(1), , 99 Stat. 1705; Pub. L. 100–233, title IV, § 418(b), formerly § 415(b), , 101 Stat. 1653, renumbered § 418(b), Pub. L. 100–399, title IV, § 409(a), , 102 Stat. 1003; Pub. L. 100–399, title II, § 203(e), , 102 Stat. 993.)