12 U.S.C. § 2071 — Organization and charters

(a) Charter. Each production credit^* association continues as a federally chartered instrumentality of the United States.

(b) Organization. (1) In general. Ten or more farmers, ranchers, or producers or harvesters of aquatic products who want to borrow money under this part may organize a production credit association. (2) Articles of association. The proposed articles must be sent to the Farm Credit Bank for the district, together with an agreement that the association will subscribe for the amount of the bank’s stock the bank requires. (3) Contents of articles. The articles must generally state^* (A) the association’s purposes; (B) the powers it will use to perform functions authorized by this part; and (C) the territory it plans to serve. (4) Signatures. People forming the association must sign the articles. Each must also sign a statement showing that the person^* is eligible to borrow from the association and will become a stockholder. (5) Copy to FCA. A copy must be sent to the Farm Credit Administration with the bank’s recommendations about whether the association is needed to serve eligible people in the proposed territory and whether that territory includes an area in another production credit association’s charter. (6) Denial of charter. For good cause, the Farm Credit Administration may deny the charter. (7) Approval of articles. When the Farm Credit Administration approves the proposed articles and issues a charter, the association becomes on that date a federally chartered corporate body and an instrumentality of the United States. (8) Powers of FCA. Under its rules or the charter’s terms, the Farm Credit Administration may (A) provide for organizing the association; (B) set its initial stock amount; (C) set the territory where it may operate; and (D) approve charter amendments.