Page:United States Statutes at Large Volume 101 Part 3.djvu/336

 101 STAT. 1634

PUBLIC LAW 100-233—JAN. 6, 1988

''Subtitle B—Federal Land Bank Associations 12 USC 2091.

"SEC. 2.10. ORGANIZATIONS; ARTICLES; CHARTERS; POWERS OF THE FARM CREDIT ADMINISTRATION.

"(a) CHARTER.—Each Federal land bank association shall continue as a federally chartered instrumentality of the United States. "(b) ORGANIZATION.—

"(1) IN GENERAL.—A Federal land bank association may be organized by any group of 10 or more persons desiring to borrow money from a Farm Credit Bank, including persons to whom the Farm Credit Bank has made a loan directly or through an agent and has taken as security real estate located in the territory proposed to be served by the association. "(2) ARTICLES OF ASSOCIATION.— "(A) DESCRIPTION OF TERRITORY.—The articles of associa-



,,.-.,.

,^

tion shall describe the territory within which the association proposes to carry on its operations. "(B) SUBMISSION TO FCA.—Proposed articles 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 accordance with the bylaws of the Farm Credit Bank. "(C) STOCK PURCHASE.—Association stock may be paid for by surrendering for cancellation stock in the bank held by a borrower and the issuance of an equivalent amount of stock to such borrower in the association. "(D) STATEMENT.—The articles shall be accompanied by a statement signed by each of the members of the proposed association establishing— "(i) the individual's eligibility for, and request or need of the individual of a Farm Credit Bank loan; "(ii) that the real estate with respect to which the individual desires the loan for is not being served by another Federal land bank association; and "(iii) that the individual is or will become a stockholder in the proposed association. "(E) SUBMISSION 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 the proposed association in order to adequately serve the credit needs of eligible persons in the proposed territory and a statement as to whether or not the territory includes any territory described in the charter of another Federal land bank association. "(3) DENIALS OF CHARTERS.—The Farm Credit Administration for good cause shown may deny the charter applied for. "(4) APPROVAL OF ARTICLES.—On the approval of the proposed

articles by the Farm Credit Administration and the issuance of such charter, the association shall become as of such date a federally chartered body corporate and an instrumentality of the United States. "(c) FCA AUTHORITY ON ORGANIZATION.—The Farm Credit Administration shall have power, in the terms of the charter, under rules and regulations prescribed by the Farm Credit Administration or by approving the bylaws of the association, to provide for the— (1) organization of the association;

�