12 U.S.C. § 2279b — Transfer of lending authority

(a) Voluntary transfers. A Federal land bank, or a merged bank containing one, may transfer to a Federal land bank association—and the association may assume—the bank’s authority to make and participate in long-term real-estate mortgage loans in the association’s territory if approved by the Farm Credit^* Administration Board, both institutions’ Boards, and a majority of each institution’s stockholders under sections 2279a and 2279c–1. (b) After a transfer under (a) or (d), (1) the association has all of the transferring bank’s direct long-term real-estate mortgage authority in its territory, and (2) the bank may provide financial assistance, discount or purchase the association’s notes, drafts, or other obligations endorsed or guaranteed by it, when proceeds were advanced to eligible persons for association-authorized purposes. (c) The Farm Credit Administration must regulate how the transferring bank’s powers and obligations are consolidated and, as needed, reconciled in the association. (d) When one or more production credit associations merge with one or more Federal land bank associations, the supervising bank must transfer all its direct lending authority in the association’s territory to the merged association.