§ 2279aa. Definitions

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 VIII § 8 · 85 Stat. 583

   Enacted · 12 U.S.C. § 2279aa

   Pub. L. 92–181, title VIII, § 8.0, as added Pub. L. 100–233, title VII, § 702, Jan. 6, 1988, 101 Stat. 1686

   Source evidence

   Code source credit
   Pub. L. 92–181, title VIII, § 8.0, as added Pub. L. 100–233, title VII, § 702, Jan. 6, 1988, 101 Stat. 1686

   Enacted provision · exact public law section
   (8) Elect by its board of directors a president, airy vice president, a secretary, a treasurer, and provide for such other officers, employees, and agents as may be necessary, including joint employees as provided in this Act, define their duties, and require surety bonds or make other provision against losses occasioned by employees.

2. 1988

   Agricultural Credit Technical Corrections Act of 1988

   Pub. L. 100–399 title VI § 601(a) · 102 Stat. 989

   1. Substituted · 12 U.S.C. § 2279aa(9)(B)(ii)

      Pub. L. 100–399 substituted “holding” for “hold”

   2. Struck · 12 U.S.C. § 2279aa(9)(B)(ii)

      Pub. L. 100–399 struck out “and” before “are”

   Source evidence

   Code amendment note
   Par. (9)(B)(ii). Pub. L. 100–399 substituted “holding” for “hold” and struck out “and” before “are”.

   Enacted provision · exact public law section
   (a) Section 8.0(9)(B)(ii) is amended— (1) by striking out “hold” and inserting in lieu thereof “holding”; and (2) by striking out “and” the first place it appears.

3. 1990

   Food, Agriculture, Conservation, and Trade Act of 1990

   Pub. L. 101–624 § 1839(a) · 104 Stat. 3359

   Amended · 12 U.S.C. § 2279aa(3)

   Pub. L. 101–624, § 1839(a), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “The term ‘certified facility’ means a secondary marketing agricultural loan facility that is certified under section 2279aa–5 of this title.”

   Source evidence

   Code amendment note
   Par. (3). Pub. L. 101–624, § 1839(a), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “The term ‘certified facility’ means a secondary marketing agricultural loan facility that is certified under section 2279aa–5 of this title.”

   Enacted provision · exact public law section
   (a) Definition of Certified Facility.— Paragraph (3) of section 8.0 (12 U.S.C. 2279aa(3)) is amended to read as follows: “(3) Certified facility.— The term ‘certified facility’ means— “(A) a secondary marketing agricultural loan facility that is certified under section 8.5; or “(B) the Corporation and any affiliate thereof, but only with respect to qualified loans described in paragraph (9)(B).”.

4. 1990

   Food, Agriculture, Conservation, and Trade Act of 1990

   Pub. L. 101–624 § 1839(b) · 104 Stat. 3359

   Amended · 12 U.S.C. § 2279aa(9)

   Pub. L. 101–624, § 1839(b), amended par. (9) generally. Prior to amendment, par. (9) read as follows: “The term ‘qualified loan’ means an obligation that—

   Source evidence

   Code amendment note
   Par. (9). Pub. L. 101–624, § 1839(b), amended par. (9) generally. Prior to amendment, par. (9) read as follows: “The term ‘qualified loan’ means an obligation that—

   “(A) is secured by a fee-simple or leasehold mortgage with status as a first lien on agricultural real estate located in the United States that is not subject to any legal or equitable claims deriving from a preceding fee-simple or leasehold mortgage; “(B) is an obligation of— “(i) a citizen or national of the United States or an alien lawfully admitted for permanent residence in the United States; or “(ii) a private corporation or partnership whose members, stockholders, or partners holding a majority interest in the corporation or partnership are individuals described in clause (i); and “(C) is an obligation of a person, corporation, or partnership that has training or farming experience that, under criteria established by the Corporation, is sufficient to ensure a reasonable likelihood that the loan will be repaid according to its terms.”

   Enacted provision · exact public law section
   (b) Definition of Qualified Loan.— Paragraph (9) of section 8.0 (12 U.S.C. 2279aa(9)) is amended to read as follows: “(9) Qualified loan.— The term ‘qualified loan’ means an obligation— “(A) (i) that is secured by a fee-simple or leasehold mortgage with status as a first lien, on agricultural real estate located in the United States that is not subject to any legal or equitable claims deriving from a preceding fee-simple or leasehold mortgage; “(ii) of— “(I) a citizen or national of the United States or an alien lawfully admitted for permanent residence in the United States; or “(II) a private corporation or partnership whose members, stockholders, or partners holding a majority interest in the corporation or partnership are individuals described in subclause (I); and “(iii) of a person, corporation, or partnership that has training or farming experience that, under criteria established by the Corporation, is sufficient to ensure a reasonable likelihood that the loan will be repaid according to its terms; or “(B) that is the portion of a loan guaranteed by the Secretary of Agriculture pursuant to the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.), except that— “(i) subsections (b) through (f) of section 8.6, and sections 8.7, 8.8, and 8.9, shall not apply to the portion of a loan guaranteed by the Secretary or to an obligation, pool, or security representing an interest in or obligation backed by a pool of obligations relating to the portion of a loan guaranteed by the Secretary; and “(ii) the portion of a loan guaranteed by the Secretary shall be considered to meet all standards for qualified loans for all purposes under this Act.”.

5. 1996

   Farm Credit System Reform Act of 1996

   Pub. L. 104–105 § 101 · 110 Stat. 162

   Substituted · 12 U.S.C. § 2279aa(1)(B)(ii)

   Pub. L. 104–105, § 101, substituted “, excluding the land to which the dwelling is affixed, with a value” for “with a purchase price”

   Source evidence

   Code amendment note
   Par. (1)(B)(ii). Pub. L. 104–105, § 101, substituted “, excluding the land to which the dwelling is affixed, with a value” for “with a purchase price”.

   Enacted provision · exact public law section
   SEC. 101. DEFINITION OF REAL ESTATE. (a) Section 20 Repealed.— Section 8.0(1)(B)(ii) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa(1)(B)(ii)) is amended by striking “with a purchase price” and inserting “, excluding the land to which the dwelling is affixed, with a value”.

6. 1996

   Farm Credit System Reform Act of 1996

   Pub. L. 104–105 § 102(1) · 110 Stat. 162

   Substituted · 12 U.S.C. § 2279aa(3)(A)

   Pub. L. 104–105, § 102(1), substituted “an agricultural mortgage marketing” for “a secondary marketing agricultural loan”

   Source evidence

   Code amendment note
   Par. (3)(A). Pub. L. 104–105, § 102(1), substituted “an agricultural mortgage marketing” for “a secondary marketing agricultural loan”.

   Enacted provision · exact public law section
   (1) in subparagraph (A), by striking “secondary marketing agricultural loan” and inserting “an agricultural mortgage marketing”; and

7. 1996

   Farm Credit System Reform Act of 1996

   Pub. L. 104–105 § 102(2) · 110 Stat. 162

   Struck · 12 U.S.C. § 2279aa(3)(B)

   Pub. L. 104–105, § 102(2), struck out “, but only with respect to qualified loans described in paragraph (9)(B)” after “thereof”

   Source evidence

   Code amendment note
   Par. (3)(B). Pub. L. 104–105, § 102(2), struck out “, but only with respect to qualified loans described in paragraph (9)(B)” after “thereof”.

   Enacted provision · exact public law section
   (2) in subparagraph (B), by striking “, but only” and all that follows through “(9)(B)”.

8. 1996

   Farm Credit System Reform Act of 1996

   Pub. L. 104–105 title I · 110 Stat. 162

   1. Substituted · 12 U.S.C. § 2279aa(9)(B)(i)

      Pub. L. 104–105, §§ 108(c)(1), 109(b)(1), substituted “(d)” for “(f)”

   2. Substituted · 12 U.S.C. § 2279aa(9)(B)(i)

      Pub. L. 104–105, §§ 108(c)(1), 109(b)(1), substituted “2279aa–8” for “2279aa–7, 2279aa–8,”

   Source evidence

   Code amendment note
   Par. (9)(B)(i). Pub. L. 104–105, §§ 108(c)(1), 109(b)(1), substituted “(d)” for “(f)” and “2279aa–8” for “2279aa–7, 2279aa–8,”.

   Enacted provision · exact public law
   TITLE I— AGRICULTURAL MORTGAGE SECONDARY MARKET SEC. 101. DEFINITION OF REAL ESTATE. (a) Section 20 Repealed.— Section 8.0(1)(B)(ii) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa(1)(B)(ii)) is amended by striking “with a purchase price” and inserting “, excluding the land to which the dwelling is affixed, with a value”. SEC. 102. DEFINITION OF CERTIFIED FACILITY. Section 8.0(3) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa(3)) is amended— (1) in subparagraph (A), by striking “secondary marketing agricultural loan” and inserting “an agricultural mortgage marketing”; and (2) in subparagraph (B), by striking “, but only” and all that follows through “(9)(B)”. SEC. 103. DUTIES OF FEDERAL AGRICULTURAL MORTGAGE CORPORATION. Section 8.1(b) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–1(b)) is amended— (1) in paragraph (2), by striking “andx201D; at the end; (2) in paragraph (3), by striking the period at the end and inserting “; and”; and (3) by adding at the end the following: “(4) purchase qualified loans and issue securities representing interests in, or obligations backed by, the qualified loans, guaranteed for the timely repayment of principal and interest.”. SEC. 104. POWERS OF THE CORPORATION. Section 8.3(c) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–3(c)) is amended— (1) by redesignating paragraphs (13) and (14) as paragraphs (14) and (15), respectively; and (2) by inserting after paragraph (12) the following: “(13) To purchase, hold, sell, or assign a qualified loan, to issue a guaranteed security, representing an interest in, or an obligation backed by, the qualified loan, and to perform all the functions and responsibilities of an agricultural mortgage marketing facility operating as a certified facility under this title.”. SEC. 105. FEDERAL RESERVE BANKS AS DEPOSITARIES AND FISCAL AGENTS. Section 8.3 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–3) is amended— (1) in subsection (d), by striking “may act as depositories for, or” and inserting “shall act as depositories for, and”; and (2) in subsection (e), by striking “Secretary of the Treasury may authorize the Corporation to use” and inserting “Corporation shall have access to”. SEC. 106. CERTIFICATION OF AGRICULTURAL MORTGAGE MARKETING FACILITIES. Section 8.5 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–5) is amended— (1) in subsection (a)— (A) in paragraph (1), by inserting “(other than the Corporation)” after “agricultural mortgage marketing facilities’’; and (B) in paragraph (2), by inserting “(other than the Corporation)” after “agricultural mortgage marketing facility”; and (2) in subsection (e)(1), by striking “(other than the Corporation)”. SEC. 107. GUARANTEE OF QUALIFIED LOANS. Section 8.6 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–6) is amended— (1) in subsection (a)(1)— (A) by striking “Corporation shall guarantee” and inserting the following: “Corporation— “(A) shall guarantee”; (B) by striking the period at the end and inserting “; and”; and (C) by adding at the end the following: “(B) may issue a security, guaranteed as to the timely payment of principal and interest, that represents an interest solely in, or an obligation fully backed by, a pool consisting of qualified loans that— “(i) meet the standards established under section 8.8; and “(ii) have been purchased and held by the Corporation”; (2) in subsection (d)— (A) by striking paragraph (4); and (B) by redesignating paragraphs (5), (6), and (7) as paragraphs (4), (5), and (6), respectively; and (3) in subsection (g)(2), by striking “section 8.0(9)(B))” and inserting “section 8.0(9))”. SEC. 108. MANDATORY RESERVES AND SUBORDINATED PARTICIPATION INTERESTS ELIMINATED. (a) Guarantee of Qualified Loans.— Section 8.6 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–6) is amended by striking subsection (b). (b) Reserves and Subordinated Participation Interests.— Section 8.7 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–7) is repealed. (c) Conforming Amendments.— (1) Section 8.0(9)(B)(i) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa(9)(B)(i)) is amended by striking “8.7, 8.8,” and inserting “8.8”. (2) Section 8.6(a)(2) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–6(a)(2)) is amended by striking “subject to the provisions of subsection (b)”. SEC. 109. STANDARDS REQUIRING DIVERSIFIED POOLS. (a) In General.— Section 8.6 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–6) (as amended by section 108) is amended— (1) by striking subsection (c); and (2) by redesignating subsections (d) through (g) as subsections (b) through (e), respectively. (b) Conforming Amendments.— (1) Section 8.0(9)(B)(i) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa(9)(B)(i)) is amended by striking “(f)” and inserting “(d)”. (2) Section 8.13(a) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–13(a)) is amended by striking “sections 8.6(b) and” in each place it appears and inserting “section”. (3) Section 8.32(b)(1)(C) of the Farm Credit Act of 1971 (12 U.S.C. 2279bb–l(b)(1)(C)) is amended— (A) by striking “shall” and inserting “may”; and (B) by inserting “(as in effect before the date of the enactment of the Farm Credit System Reform Act of 1996)” before the semicolon. (4) Section 8.6(b) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–6(b)) (as redesignated by subsection (a)(2)) is amended— (A) by striking paragraph (4) (as redesignated by section 107(2)(B)); and (B) by redesignating paragraphs (5) and (6) (as redesignated by section 107(2)(B)) as paragraphs (4) and (5), respectively. SEC. 110. SMALL FARMS. Section 8.8(e) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–8(e)) is amended by adding at the end the following: “The Board shall promote and encourage the inclusion of qualified loans for small farms and family farmers in the agricultural mortgage secondary market”. SEC. 111. DEFINITION OF AN AFFILIATE. Section 8.11(e) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–11(e)) is amended— (1) by striking “a certified facility or”; and (2) by striking “paragraphs (3) and (7), respectively, of section 8.0” and inserting “section 8.0(7)”. SEC. 112. STATE USURY LAWS SUPERSEDED. Section 8.12 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–12) is amended by striking subsection (d) and inserting the following: “(d) State Usury Laws Superseded.— A provision of the Constitution or law of any State shall not apply to an agricultural loan made by an originator or a certified facility in accordance with this title for sale to the Corporation or to a certified facility for inclusion in a pool for which the Corporation has provided, or has committed to provide, a guarantee, if the loan, not later than 180 days after the date the loan was made, is sold to the Corporation or included in a pool for which the Corporation has provided a guarantee, if the provision— “(1) limits the rate or amount of interest, discount points, finance charges, or other charges that may be charged, taken, received, or reserved by an agricultural lender or a certified facility; or “(2) limits or prohibits a prepayment penalty (either fixed or declining), yield maintenance, or make whole payment that may be charged, taken, or received by an agricultural lender or a certified facility in connection with the full or partial payment of the principal amount due on a loan by a borrower in advance of the scheduled date for the payment under the terms of the loan, otherwise known as a prepayment of the loan principal.”. SEC. 113. EXTENSION OF CAPITAL TRANSITION PERIOD. Section 8.32 of the Farm Credit Act of 1971 (12 U.S.C. 2279bb–1) is amended— (1) in the first sentence of subsection (a), by striking “Not later than the expiration of the 2-year period beginning on December 13, 1991,” and inserting “Not sooner than the expiration of the 3-year period beginning on the date of enactment of the Farm Credit System Reform Act of 1996,”; (2) in the first sentence of subsection (b)(2), by striking “5-year” and inserting “8-year”; and (3) in subsection (d)— (A) in the first sentence— (i) by striking “The regulations establishing” and inserting the following: “(1) In general.— The regulations establishing”; and (ii) by striking “shall contain” and inserting the following: “shall— “(A) be issued by the Director for public comment in the form of a notice of proposed rulemaking, to be first published after the expiration of the period referred to in subsection (a); and “(B) contain”; and (B) in the second sentence, by striking “The regulations shall” and inserting the following: “(2) Specificity.— The regulations referred to in paragraph (1) shall”. SEC. 114. MINIMUM CAPITAL LEVEL. Section 8.33 of the Farm Credit Act of 1971 (12 U.S.C. 2279bb–2) is amended to read as follows: “SEC. 8.33. MINIMUM CAPITAL LEVEL. “(a) In General.— Except as provided in subsection (b), for purposes of this subtitle, the minimum capital level for the Corporation shall be an amount of core capital equal to the sum of— “(1) 2.75 percent of the aggregate on-balance sheet assets of the Corporation, as determined in accordance with generally accepted accounting principles; and “(2) 0.75 percent of the aggregate off-balance sheet obligations of the Corporation, which, for the purposes of this subtitle, shall include— “(A) the unpaid principal balance of outstanding securities that are guaranteed by the Corporation and backed by pools of qualified loans; “(B) instruments that are issued or guaranteed by the Corporation and are substantially equivalent to instruments described in subparagraph (A); and “(C) other off-balance sheet obligations of the Corporation. “(b) Transition Period.— “(1) In general.— For purposes of this subtitle, the minimum capital level for the Corporation— “(A) prior to January 1, 1997, shall be the amount of core capital equal to the sum of— “(i) 0.45 percent of aggregate off-balance sheet obligations of the Corporation; “(ii) 0.45 percent of designated on-balance sheet assets of the Corporation, as determined under paragraph (2); and “(iii) 2.50 percent of on-balance sheet assets of the Corporation other than assets designated under paragraph (2); “(B) during the 1-year period ending December 31, 1997, shall be the amount of core capital equal to the sum of— “(i) 0.55 percent of aggregate off-balance sheet obligations of tne Corporation; “(ii) 1.20 percent of designated on-balance sheet assets of the Corporation, as determined under paragraph (2); and “(iii) 2.55 percent of on-balance sheet assets of the Corporation other than assets designated under paragraph (2); “(C) during the 1-year period ending December 31, 1998, shall be the amount of core capital equal to— “(i) if the Corporation’s core capital is not less than $25,000,000 on January 1, 1998, the sum of— “(I) 0.65 percent of aggregate off-balance sheet obligations of the Corporation; “(II) 1.95 percent of designated on-balance sheet assets of the Corporation, as determined under paragraph (2); and “(III) 2.65 percent of on-balance sheet assets of the Corporation other than assets designated under paragraph (2); or “(ii) if the Corporation’s core capital is less than $25,000,000 on January 1, 1998, the amount determined under subsection (a); and “(D) on and after January 1, 1999, shall be the amount determined under subsection (a). “(2) Designated on-balance sheet assets.— For purposes of this subsection, the designated on-balance sheet assets of the Corporation shall be— “(A) the aggregate on-balance sheet assets of the Corporation acquired under section 8.6(e); and “(B) the aggregate amount of qualified loans purchased and held by the Corporation under section 8.3(c)( 13).”. SEC. 115. CRITICAL CAPITAL LEVEL. Section 8.34 of the Farm Credit Act of 1971 (12 U.S.C. 2279bb–3) is amended to read as follows: “SEC. 8.34. CRITICAL CAPITAL LEVEL. “For purposes of this subtitle, the critical capital level for the Corporation shall be an amount of core capital equal to 50 percent of the total minimum capital amount determined under section 8.33.”. SEC. 116. ENFORCEMENT LEVELS. Section 8.35(e) of the Farm Credit Act of 1971 (12 U.S.C. 2279bb–4(e)) is amended by striking “during the 30-month period beginning on the date of the enactment of this section,” and inserting “during the period beginning on December 13, 1991, and ending on the effective date of the risk based capital regulation issued by the Director under section 8.32,”. SEC. 117. RECAPITALIZATION OF THE CORPORATION. Title VIII of the Farm Credit Act of 1971 (12 U.S.C. 2279aa et seq.) is amended by adding at the end the following: “SEC. 8.38. RECAPITALIZATION OF THE CORPORATION. “(a) Mandatory Recapitalization.— The Corporation shall increase the core capital of the Corporation to an amount equal to or greater than $25,000,000, not later than the earlier of— “(1) the date that is 2 years after the date of enactment of this section; or “(2) the date that is 180 days after the end of the first calendar quarter that the aggregate on-balance sheet assets of the Corporation, plus the outstanding principal of the off-balance sheet obligations of the Corporation, equal or exceed $2,000,000,000. “(b) Raising Core Capital.— In carrying out this section, the Corporation may issue stock under section 8.4 and otherwise employ any recognized and legitimate means of raising core capital in the power of the Corporation under section 8.3. “(c) Limitation on Growth of Total Assets.— During the 2-year period beginning on the date of enactment of this section, the aggregate on-balance sheet assets of the Corporation plus the outstanding principal of the off-balance sheet obligations of the Corporation may not exceed $3,000,000,000 if the core capital of the Corporation is less than $25,000,000. “(d) Enforcement.— If the Corporation fails to carry out subsection (a) by the date required under paragraph (1) or (2) of subsection (a), the Corporation may not purchase a new qualified loan or issue or guarantee a new loan-backed security until the core capital of the Corporation is increased to an amount equal to or greater than $25,000,000.”. SEC. 118. LIQUIDATION OF THE FEDERAL AGRICULTURAL MORTGAGE CORPORATION. Title VIII of the Farm Credit Act of 1971 (12 U.S.C. 2279aa et seq.) (as amended by section 117) is amended by adding at the end the following: “Subtitle C— Receivership, Conservatorship, and Liquidation of the Federal Agricultural Mortgage Corporation “SEC. 8.41. CONSERVATORSHIP; LIQUIDATION; RECEIVERSHIP. “(a) Voluntary Liquidation.— The Corporation may voluntarily liquidate only with the consent of, and in accordance with a plan of liquidation approved by, the Farm Credit Administration Board. “(b) Involuntary Liquidation.— “(1) In general.— The Farm Credit Administration Board may appoint a conservator or receiver for the Corporation under the circumstances specified in section 4.12(b). “(2) Application.— In applying section 4.12(b) to the Corporation under paragraph (1)— “(A) the Corporation shall also be considered insolvent if the Corporation is unable to pay its debts as they fall due in the ordinary course of business; “(B) a conservator may also be appointed for the Corporation if the authority of the Corporation to purchase qualified loans or issue or guarantee loan-backed securities is suspended; and “(C) a receiver may also be appointed for the Corporation if— “(i) (I) the authority of the Corporation to purchase qualified loans or issue or guarantee loan-backed securities is suspended; or “(II) the Corporation is classified under section 8.35 as within level III or IV and the alternative actions available under subtitle B are not satisfactory; and “(ii) the Farm Credit Administration determines that the appointment of a conservator would not be appropriate. “(3) No effect on supervisory actions.— The grounds for appointment of a conservator for the Corporation under this subsection shall be in addition to those in section 8.37. “(c) Appointment of Conservator or Receiver.— “(1) Qualifications.— Notwithstanding section 4.12(b), if a conservator or receiver is appointed for the Corporation, the conservator or receiver shall be— “(A) the Farm Credit Administration or any other governmental entity or employee, including the Farm Credit System Insurance Corporation; or “(B) any person that— “(i) has no claim against, or financial interest in, the Corporation or other basis for a conflict of interest as the conservator or receiver; and “(ii) has the financial and management expertise necessary to direct the operations and affairs of the Corporation and, if necessary, to liquidate the Corporation. “(2) Compensation.— “(A) In general.— A conservator or receiver for the Corporation and professional personnel (other than a Federal employee) employed to represent or assist the conservator or receiver may be compensated for activities conducted as, or for, a conservator or receiver. “(B) Limit on compensation.— Compensation may not be provided in amounts greater than the compensation paid to employees of the Federal Government for similar services, except that the Farm Credit Administration may provide for compensation at higher rates that are not in excess of rates prevailing in the private sector if the Farm Credit Administration determines that compensation at higher rates is necessary in order to recruit and retain competent personnel. “(C) Contractual arrangements.— The conservator or receiver may contract with any governmental entity, including the Farm Credit System Insurance Corporation, to make personnel, services, and facilities of the entity available to the conservator or receiver on such terms and compensation arrangements as shall be mutually agreed, and each entity may provide the same to the conservator or receiver. “(3) Expenses.— A valid claim for expenses of the conservatorship or receivership (including compensation under paragraph (2)) and a valid claim with respect to a loan made under subsection (f) shall— “(A) be paid by the conservator or receiver from funds of the Corporation before any other valid claim against the Corporation; and “(B) may be secured by a lien, on such property of the Corporation as the conservator or receiver may determine, that shall have priority over any other lien. “(4) Liability.— If the conservator or receiver for the Corporation is not a Federal entity, or an officer or employee of the Federal Government, the conservator or receiver shall not be personally liable for damages in tort or otherwise for an act or omission performed pursuant to and in the course of the conservatorship or receivership, unless the act or omission constitutes gross negligence or any form of intentional tortious conduct or criminal conduct. “(5) Indemnification— The Farm Credit Administration may allow indemnification of the conservator or receiver from the assets of the conservatorship or receivership on such terms as the Farm Credit Administration considers appropriate. “(d) Judicial Review of Appointment.— “(1) In general.— Notwithstanding subsection (i)(1), not later than 30 days after a conservator or receiver is appointed under subsection (b), the Corporation may bring an action in the United States District Court for the District of Columbia for an order requiring the Farm Credit Administration Board to remove the conservator or receiver. The court shall, on the merits, dismiss the action or direct the Farm Credit Administration Board to remove the conservator or receiver. “(2) Stay of other actions.— On the commencement of an action under paragraph (1), any court having jurisdiction of any other action or enforcement proceeding authorized under this Act to which the Corporation is a party shall stay the action or proceeding during the pendency of the action for removal of the conservator or receiver. “(e) General Powers of Conservator or Receiver.— The conservator or receiver for the Corporation shall have such powers to conduct the conservatorship or receivership as shall be provided pursuant to regulations adopted by the Farm Credit Administration Board. Such powers shall be comparable to the powers available to a conservator or receiver appointed pursuant to section 4.12(b). “(f) Borrowings for Working Capital.— “(1) In general.— If the conservator or receiver of the Corporation determines that it is likely that there will be insufficient funds to pay the ongoing administrative expenses of the conservatorship or receivership or that there will be insufficient liquidity to fund maturing obligations of the conservatorship or receivership, the conservator or receiver may borrow funds in such amounts, from such sources, and at such rates of interest as the conservator or receiver considers necessary or appropriate to meet the administrative expenses or liquidity needs of the conservatorship or receivership. “(2) Working capital from farm credit banks.— A Farm Credit bank may loan funds to the conservator or receiver for a loan authorized under paragraph (1) or, in the event of receivership, a Farm Credit bank may purchase assets of the Corporation. “(g) Agreements Against Interests of Conservator or Receiver.— No agreement that tends to diminish or defeat the right, title, or interest of the conservator or receiver for the Corporation in any asset acquired by the conservator or receiver as conservator or receiver for the Corporation shall be valid against the conservator or receiver unless the agreement— “(1) is in writing; “(2) is executed by the Corporation and any person claiming an adverse interest under the agreement, including the obligor, contemporaneously with the acquisition of the asset by the Corporation; “(3) is approved by the Board or an appropriate committee of the Board, which approval shall be reflected in the minutes of the Board or committee; and “(4) has been, continuously, from the time of the agreement’s execution, an official record of the Corporation. “(h) Report to the Congress.— On a determination by the receiver for the Corporation that there are insufficient assets of the receivership to pay all valid claims against the receivership, the receiver shall submit to the Secretary of the Treasury, the Committee on Agriculture of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the financial condition of the receivership. “(i) Termination of Authorities.— “(1) Corporation.— The charter of the Corporation shall be canceled, and the authority provided to the Corporation by this title shall terminate, on such date as the Farm Credit Administration Board determines is appropriate following the placement of the Corporation in receivership, but not later than the conclusion of the receivership and discharge of the receiver. “(2) Oversight.— The Office of Secondary Market Over-Government sight established under section 8.11 shall be abolished, and organization section 8.11(a) and subtitle B shall have no force or effect, on such date as the Farm Credit Administration Board determines is appropriate following the placement of the Corporation in receivership, but not later than the conclusion of the receivership and discharge of the receiver.”.

9. 2008

   Food, Conservation, and Energy Act of 2008

   Pub. L. 110–246 § 5406(a) · 122 Stat. 1651

   Added · 12 U.S.C. § 2279aa(9)(C)

   Pub. L. 110–246, § 5406(a), added subpar. (C)

   Source evidence

   Code amendment note
   Par. (9)(C). Pub. L. 110–246, § 5406(a), added subpar. (C).

   Enacted provision · exact public law section
   (a) Definition of Qualified Loan.— Section 8.0(9) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa(9)) is amended— (1) in subparagraph (A)(iii), by striking “or” at the end; (2) in subparagraph (B)(ii), by striking the period at the end and inserting “; or”; and (3) by adding at the end the following: “(C) that is a loan, or an interest in a loan, for an electric or telephone facility by a cooperative lender to a borrower that has received, or is eligible to receive, a loan under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.).” .

   Effective date note
   Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of Title 7, Agriculture.

10. 2018

    Agriculture Improvement Act of 2018

    Pub. L. 115–334 § 5411(42)(A) · 132 Stat. 4490

    Substituted · 12 U.S.C. § 2279aa(2)

    Pub. L. 115–334, § 5411(42)(A), substituted “means the board of directors established under section 2279aa–2 of this title.” for “means—

    Source evidence

    Code amendment note
    Par. (2). Pub. L. 115–334, § 5411(42)(A), substituted “means the board of directors established under section 2279aa–2 of this title.” for “means—

    “(A) the interim board of directors established in section 2279aa–2(a) of this title; and “(B) the permanent board of directors established in section 2279aa–2(b) of this title; as the case may be.”

    Enacted provision · exact public law section
    (A) in paragraph (2), by striking “means—” in the matter preceding subparagraph (A) and all that follows through the period at the end of the undesignated matter following subparagraph (B) and inserting “means the board of directors established under section 8.2.”;

11. 2018

    Agriculture Improvement Act of 2018

    Pub. L. 115–334 § 5411(42)(B) · 132 Stat. 4490

    1. Redesignated · 12 U.S.C. § 2279aa(6)

       Pub. L. 115–334, § 5411(42)(B), (C), redesignated par. (7) as (6)

    2. Struck · 12 U.S.C. § 2279aa(6)

       Pub. L. 115–334, § 5411(42)(B), (C), struck out former par. (6) which defined “interim board” to mean the interim board of directors established in section 2279aa–2(a) of this title

    Source evidence

    Code amendment note
    Par. (6). Pub. L. 115–334, § 5411(42)(B), (C), redesignated par. (7) as (6) and struck out former par. (6) which defined “interim board” to mean the interim board of directors established in section 2279aa–2(a) of this title.

    Enacted provision · exact public law section
    (B) by striking paragraphs (6) and (8);

12. 2018

    Agriculture Improvement Act of 2018

    Pub. L. 115–334 § 5411(42)(C) · 132 Stat. 4490

    1. Redesignated · 12 U.S.C. § 2279aa(7)

       Pub. L. 115–334, § 5411(42)(C), (D), redesignated par. (9) as (7)

    2. Redesignated · 12 U.S.C. § 2279aa(7)

       Pub. L. 115–334, § 5411(42)(C), (D), substituted “(b) and (c)” for “(b) through (d)” in subpar. (B)(i). Former par. (7) redesignated (6)

    Source evidence

    Code amendment note
    Par. (7). Pub. L. 115–334, § 5411(42)(C), (D), redesignated par. (9) as (7) and substituted “(b) and (c)” for “(b) through (d)” in subpar. (B)(i). Former par. (7) redesignated (6).

    Enacted provision · exact public law section
    (C) by redesignating paragraphs (7), (9), and (10) as paragraphs (6), (7), and (8), respectively; and

13. 2018

    Agriculture Improvement Act of 2018

    Pub. L. 115–334 § 5411(42)(B) · 132 Stat. 4490

    1. Redesignated · 12 U.S.C. § 2279aa(8)

       Pub. L. 115–334, § 5411(42)(B), (C), redesignated par. (10) as (8)

    2. Struck · 12 U.S.C. § 2279aa(8)

       Pub. L. 115–334, § 5411(42)(B), (C), struck out former par. (8) which defined “permanent board” to mean the permanent board of directors established in section 2279aa–2(b) of this title

    Source evidence

    Code amendment note
    Par. (8). Pub. L. 115–334, § 5411(42)(B), (C), redesignated par. (10) as (8) and struck out former par. (8) which defined “permanent board” to mean the permanent board of directors established in section 2279aa–2(b) of this title.

    Enacted provision · exact public law section
    (B) by striking paragraphs (6) and (8);

14. 2018

    Agriculture Improvement Act of 2018

    Pub. L. 115–334 § 5411(42)(C) · 132 Stat. 4490

    Redesignated · 12 U.S.C. § 2279aa(9); 12 U.S.C. § 2279aa(10)

    Pub. L. 115–334, § 5411(42)(C), redesignated pars. (9) and (10) as (7) and (8), respectively

    Source evidence

    Code amendment note
    Pars. (9), (10). Pub. L. 115–334, § 5411(42)(C), redesignated pars. (9) and (10) as (7) and (8), respectively.

    Enacted provision · exact public law section
    (C) by redesignating paragraphs (7), (9), and (10) as paragraphs (6), (7), and (8), respectively; and

17 of 19 references resolved to an enrolled provision · 2 partial