Page:United States Statutes at Large Volume 101 Part 3.djvu/349

 PUBLIC LAW 100-233—JAN. 6, 1988

101 STAT. 1647

"Subtitle B—Mergers, Transfers of Assets, and Powers of Associations Within a District "Chapter 1—Transfers by Federal Land Banks to Federal Land Bank Associations "SEC. 7.6. TRANSFER OF LENDING AUTHORITY.

12 USC 2279b.

"(a) ASSIGNMENTS.—A Federal land bank or a merged bank having a Federal land bank as one of its constituents, may assign to a Federal land bank association, and the association may assume, the authority of the transferring bank in the territorial area served by the association, to make and participate in long-term real estate mortgage loans under sections 1.6 through 1.9 if the assignment is approved by— "(1) the Farm Credit Administration Board; "(2) the Board of Directors of both institutions; and "(3) a majority of the stockholders of the bank and of the association, in accordance with the voting provisions of sections 7.0 and 7.6. "(b) DIRECT LOANS AND FINANCIAL ASSISTANCE.—After an assignment described in subsection (a)— "(1) the Federal land bank association shall possess all of the direct long-term real estate mortgage loan authority, formerly possessed by the transferring bank, in the territory served by the association; and "(2) the Federal land bank may provide and extend financial assistance to, and discount for, or purchase from, the transferee Federal land bank association any note, draft, or other obligation with the endorsement or guarantee of the association, the proceeds of which have been advanced to persons eligible and for purposes of financing by the association under subsection (a). "(c) REGULATIONS.—The Farm Credit Administration shall issue regulations that establish the manner in which the powers and obligations of the banks that make assignments or transfers are consolidated and, to the extent necessary, reconciled in the association referred to in subsection (a). Following a transfer or assignment under subsection (a), the provisions of section 4.3A shall be applicable to the association. "Chapter 2—Merger of Like and Unlike Associations "SEC. 7.7. MERGERS OF UNLIKE ASSOCIATIONS.

12 USC 2279c.

"On the merger of one or more production credit associations with one or more Federal land bank associations, the bank supervising the Federal land bank association shall transfer all of its direct lending authority of the bank to such association under section 7.8. "SEC. 7.8. MERGER OF ASSOCIATIONS.

"(a) IN GENERAL.—Two or more associations within the same district, whether or not organized under the same title of this Act, may merge into a single entity (hereinafter in this title referred to as a 'merged association') if the plan of merger is approved by— "(1) the Farm Credit Administration Board; "(2) the boards of directors of the associations;

12 USC 2279c-l.

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