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12 U.S.C. § 2021Loans through associations or agents

submitted 38 years ago by Pub. L. 92-181 to r/title-12-BANKS-AND-BANKING · 130 words · no verdicts yet

in plain englishAI-generated · not legal advice

Farm Credit Banks generally must make authorized real-estate loans through the local Federal land bank association. If none is active, the bank may lend directly or through another named financial institution. A borrower using another route must buy bank stock as required by the bank’s bylaws.

(a) In general. Unless this section provides otherwise, a Farm Credit Bank must make loans authorized by section 2015(a) through a Federal land bank association chartered to serve the area where the borrower’s real estate is located. (b) No active association. If no active association serves that area, the bank may make the loan directly or through a bank, trust company, savings institution, or other financial institution the bank designates. (c) Stock purchase. If the loan is not made through a Federal land bank association, the applicant must buy stock in the bank under the capitalization rules in the bank’s bylaws.
the actual law source: uscode.house.gov ↗public domain
(a) In general

The Farm Credit Banks shall, except as otherwise herein provided, make loans of the type authorized under section 2015(a) of this title through a Federal land bank association chartered to serve the territory in which the real estate of the borrower is located.

(b) No active association

If there is no active association chartered to serve territory where the real estate is located, the bank may make the loan directly or through such bank or trust company or savings or other financial institution as such bank may designate.

(c) Purchase of stock required

When the loan is not made through a Federal land bank association, the applicant shall purchase stock in the bank in accordance with the capitalization requirements provided for in the bylaws of the bank.

Source credit: (Pub. L. 92–181, title I, § 1.13, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1628.)

history & why it existsrecord from the source credit
  • 1988Enacted · Pub. L. 92-181 · 101 Stat. 1628

A history note hasn’t been published yet. The record shows enactment by Pub. L. 92-181 on 1988-01-06.

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