Page:United States Statutes at Large Volume 101 Part 3.djvu/331

 PUBLIC LAW 100-233—JAN. 6, 1988

101 STAT. 1629

"SEC. 1.14. LIENS ON STOCK.

12 USC 2022.

"The Farm Credit Banks shall have a first lien on the stock or participation certificates it issues for the payment of any liability of the stockholders to the bank. "SEC. 1.15. TAXATION.

12 USC 2023.

"The Farm Credit Banks and the capital, reserves, and surplus State and local thereof, and the income derived therefrom shall be exempt from governments. Federal, State, municipal, and local taxation, except taxes on real estate held by a Farm Credit Bank to the same extent, according to its value, as other similar property held by other persons is taxed. The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 742(a)).

"TITLE II—FARM CREDIT ASSOCIATIONS "Subtitle A—Production Credit Associations "SEC. 2.0. ORGANIZATION AND CHARTERS.

12 USC 2071.

"(a) CHARTER.—Each production credit association shall continue as a Federally chartered instrumentality of the United States. "(b) ORGANIZATION.—

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"(1) IN GENERAL.—Production credit associations may be organized by 10 or more farmers or ranchers or producers or harvesters of aquatic products desiring to borrow money under the provisions of this title. "(2) ARTICLES OF ASSOCIATION.—The proposed

articles of

association shall be forwarded to the Farm Credit Bank for the district accompanied by an agreement to subscribe on behalf of the association for stock in the bank in such amounts as may be required by the bank. "(3) CONTENTS OF ARTICLES.—The articles shall specify in general terms the— "(A) objects for which the association is formed; "(B) the powers to be exercised by the association in carrying out the functions authorized by this part; and "(C) the territory the association proposes to serve. "(4) SIGNATURES.—The articles shall be signed by persons desiring to form such an association and shall be accompanied by a statement signed by each such person establishing eligibility to borrow from the association in which such person will become a stockholder. "(5) COPY TO FCA.—A copy of the articles of association shall be forwarded to the Farm Credit Administration with the recommendations of the bank concerning the need for such an association in order to adequately serve the credit needs of eligible persons in the proposed territory and whether that territory includes any area described in the charter of another production credit association.

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