§ 2155. Liability of banks; United States not liable

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 IV § 4 · 85 Stat. 583

   Enacted · 12 U.S.C. § 2155

   Pub. L. 92–181, title IV, § 4.4, Dec. 10, 1971, 85 Stat. 611

   Source evidence

   Code source credit
   Pub. L. 92–181, title IV, § 4.4, Dec. 10, 1971, 85 Stat. 611

   Enacted provision · exact public law section
   (4) Sue and be sued.

2. 1985

   Farm Credit Amendments Act of 1985

   Pub. L. 99–205 § 205(f)(2) · 99 Stat. 1678

   1. Substituted · 12 U.S.C. § 2155(b)

      Pub. L. 99–205, § 205(f)(2), substituted “execution of” for “Governor to execute” in first sentence

   2. Struck · 12 U.S.C. § 2155(b)

      Pub. L. 99–205, § 205(f)(2), struck out “by the Governor” after “shall be executed” in second sentence

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 99–205, § 205(f)(2), substituted “execution of” for “Governor to execute” in first sentence and struck out “by the Governor” after “shall be executed” in second sentence.

   Enacted provision · exact public law section
   (2) in section 4.4(b)— (A) striking out “Governor to execute” in the first sentence and inserting in lieu thereof “execution of”; and (B) striking out “by the Governor” in the second sentence;

3. 1985

   Farm Credit Amendments Act of 1985

   Pub. L. 99–205 § 101(4) · 99 Stat. 1678

   1. Added · 12 U.S.C. § 2155(c); 12 U.S.C. § 2155(d)

      Pub. L. 99–205, § 101(4), added subsec. (c)

   2. Redesignated · 12 U.S.C. § 2155(c); 12 U.S.C. § 2155(d)

      Pub. L. 99–205, § 101(4), redesignated former subsec. (c) as (d)

   Source evidence

   Code amendment note
   Subsecs. (c), (d). Pub. L. 99–205, § 101(4), added subsec. (c) and redesignated former subsec. (c) as (d).

   Enacted provision · exact public law section
   (4) in section 4.4— (A) redesignating subsection (c) as subsection (d); and (B) inserting, after subsection (b), the following: “(c) For purposes of this part, the term ‘bank’ shall include the Capital Corporation.”.

4. 1988

   Agricultural Credit Act of 1987

   Pub. L. 100–233 § 303(a) · 101 Stat. 1568

   Amended · 12 U.S.C. § 2155(a)

   Pub. L. 100–233, § 303(a), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: “Each bank of the System shall be fully liable on notes, bonds, debentures, or other obligations issued by it individually, and shall be liable for the interest payments on long-term notes, bonds, debentures, or other obligations issued by other banks operating under the same subchapter of this chapter. Each bank shall also be primarily liable for the portion of any issue of consolidated or System-wide obligations made on its behalf and be jointly and severally liable for the payment of any additional sums as called upon by the Farm Credit Administration in order to make payments of interest or principal which any bank primarily liable therefor shall be unable to make. Such calls shall be made first upon the other banks operating under the same subchapter of this chapter as the defaulting bank, and second upon banks operating under other subchapters of this chapter, taking into consideration the capital, surplus, bonds, debentures, or other obligations which each may have outstanding at the time of such assessment.”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 100–233, § 303(a), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: “Each bank of the System shall be fully liable on notes, bonds, debentures, or other obligations issued by it individually, and shall be liable for the interest payments on long-term notes, bonds, debentures, or other obligations issued by other banks operating under the same subchapter of this chapter. Each bank shall also be primarily liable for the portion of any issue of consolidated or System-wide obligations made on its behalf and be jointly and severally liable for the payment of any additional sums as called upon by the Farm Credit Administration in order to make payments of interest or principal which any bank primarily liable therefor shall be unable to make. Such calls shall be made first upon the other banks operating under the same subchapter of this chapter as the defaulting bank, and second upon banks operating under other subchapters of this chapter, taking into consideration the capital, surplus, bonds, debentures, or other obligations which each may have outstanding at the time of such assessment.”

   Enacted provision · exact public law section
   (a) Clarification of Joint and Several Liability.— Subsection (a) of section 4.4 (12 U.S.C. 2155(a)) is amended to read as follows: “(a) (1) Each bank of the System shall be fully liable on notes, bonds, debentures, or other obligations issued by it individually, and shall be liable for the interest payments on long-term notes, bonds, debentures, or other obligations issued by other banks operating under the same title of this Act. “(2) (A) Each bank shall also be primarily liable for the portion of any issue of consolidated or System-wide obligations made on its behalf and be jointly and severally liable for the payment of any additional sums as called upon by the Farm Credit Administration in order to make payments of interest or principal which any bank primarily liable therefor shall be unable to make. “(B) Such calls first shall be made on all nondefaulting banks in proportion to each such bank’s proportionate share of the aggregate available collateral held by all such banks. “(C) For purposes of this paragraph, the term ‘available collateral’ means the amount (determined at the close of the last calendar quarter ending before such call) by which a bank’s collateral as described in section 4.3 exceeds the collateral required to support the bank’s outstanding notes, bonds, debentures, and other similar obligations. “(D) If the Farm Credit Administration makes any such call and the available collateral of all such banks does not fully satisfy the liability necessitating such calls, such calls shall be made on all nondefaulting banks in proportion to each such bank’s remaining assets. “(E) Any System bank that, pursuant to a call by the Farm Credit Administration, makes a payment of principal or interest to the holder of any consolidated or System-wide obligation issued on behalf of another System bank shall be subrogated to all rights of the holder against such other bank to the extent of such payment. “(F) On making such a call with respect to obligations issued on behalf of a System bank, the Farm Credit Administration shall appoint a receiver for the bank, which shall expeditiously liquidate or otherwise wind up the affairs of the bank.”.

   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.

5. 1988

   Agricultural Credit Act of 1987

   Pub. L. 100–233 § 207(c) · 101 Stat. 1568

   1. Redesignated · 12 U.S.C. § 2155(c)

      Pub. L. 100–233, § 207(c), redesignated subsec. (d) as (c)

   2. Struck · 12 U.S.C. § 2155(c)

      Pub. L. 100–233, § 207(c), struck out former subsec. (c) which provided that for purposes of this part, the term “bank” included the Capital Corporation

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 100–233, § 207(c), redesignated subsec. (d) as (c), and struck out former subsec. (c) which provided that for purposes of this part, the term “bank” included the Capital Corporation.

   Enacted provision · exact public law section
   (c) Definition of Bank.— Section 4.4 (12 U.S.C. 2155) is amended by striking out subsection (c) and by redesignating subsection (d) as subsection (c).

   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.

6. 1988

   Agricultural Credit Act of 1987

   Pub. L. 100–233 § 207(c) · 101 Stat. 1568

   Redesignated · 12 U.S.C. § 2155(d)

   Pub. L. 100–233, § 207(c), redesignated subsec. (d) as (c)

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 100–233, § 207(c), redesignated subsec. (d) as (c).

   Enacted provision · exact public law section
   (c) Definition of Bank.— Section 4.4 (12 U.S.C. 2155) is amended by striking out subsection (c) and by redesignating subsection (d) as subsection (c).

   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. 1988

   Agricultural Credit Act of 1987

   Pub. L. 100–233 § 303(b) · 101 Stat. 1568

   Added · 12 U.S.C. § 2155(e)

   Pub. L. 100–233, § 303(b), added subsec. (e)

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 100–233, § 303(b), added subsec. (e).

   Enacted provision · exact public law section
   (b) Insurance Fund Called on Before Invoking Joint and Several Liability.— Section 4.4 (12 U.S.C. 2155) is amended by adding at the end thereof the following new subsection: “(e) Beginning 5 years after the date of the enactment of this subsection, the Farm Credit Administration shall not call on any System institution to satisfy the liability of the institution on any joint, consolidated, or System-wide obligation participated in by the institution or with respect to which the institution is primarily, or jointly and severally, liable, before the Farm Credit Insurance Fund is exhausted, even if the Fund is only able to make a partial payment because of insufficient amounts in the Fund.”.

   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.

8. 1988

   Agricultural Credit Technical Corrections Act of 1988

   Pub. L. 100–399 title III § 303 · 102 Stat. 989

   Redesignated · 12 U.S.C. § 2155(d)

   Pub. L. 100–399 redesignated subsec. (e) as (d)

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 100–399 redesignated subsec. (e) as (d).

   Enacted provision · exact public law section
   SEC. 303. AMENDMENT RELATED TO SECTION 303 OF THE 1987 ACT. Section 4.4 is amended by redesignating subsection (e) as subsection 12 USC 2155. (d).

   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.

9. 1988

   Agricultural Credit Technical Corrections Act of 1988

   Pub. L. 100–399 title III § 303 · 102 Stat. 989

   Redesignated · 12 U.S.C. § 2155(e)

   Pub. L. 100–399 redesignated subsec. (e) as (d)

   Source evidence

   Code amendment note
   Subsec. (e). Pub. L. 100–399 redesignated subsec. (e) as (d).

   Enacted provision · exact public law section
   SEC. 303. AMENDMENT RELATED TO SECTION 303 OF THE 1987 ACT. Section 4.4 is amended by redesignating subsection (e) as subsection 12 USC 2155. (d).

   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.

12 of 12 references resolved to an enrolled provision