12 U.S.C. § 2091

Organizations; articles; charters; powers of the Farm Credit Administration

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(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 under section 2015(a) of this title, 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 association shall describe the territory within which the association proposes to carry on its operations.

(B) Submission to FCB

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.

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) StatementThe articles shall be accompanied by a statement signed by each of the members of the proposed association establishing—(i) the individual’s eligibility and request for 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 organizationThe Farm Credit Administration shall have power, in the terms of the charter, under rules and regulations prescribed by the Farm Credit Administration—(1) to provide for the organization of the association;(2) to provide for the initial amount of stock of the association;(3) to provide for the territory within which the association may carry on its operations; and(4) to approve amendments to the charter of such association.(Pub. L. 92–181, title II, § 2.10, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1634; amended Pub. L. 100–399, title IV, § 401(s), (t), Aug. 17, 1988, 102 Stat. 998.)Editorial NotesPrior Provisions

A prior section 2091, Pub. L. 92–181, title II, § 2.10, Dec. 10, 1971, 85 Stat. 597; Pub. L. 96–592, title II, § 207, Dec. 24, 1980, 94 Stat. 3442; Pub. L. 99–205, title II, § 205(e)(10), Dec. 23, 1985, 99 Stat. 1704; Pub. L. 100–233, title VIII, §§ 802(l), 805(g), Jan. 6, 1988, 101 Stat. 1711, 1715, related to organization and charters of production credit associations, prior to the general amendment of this subchapter by Pub. L. 100–233, § 401.

Amendments

1988—Subsec. (b)(1). Pub. L. 100–399, § 401(s)(1), inserted “under section 2015(a) of this title” after “a Farm Credit Bank”.

Subsec. (b)(2)(D)(i). Pub. L. 100–399, § 401(s)(2), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “the individual’s eligibility for, and request or need of the individual of a Farm Credit Bank loan;”.

Subsec. (c). Pub. L. 100–399, § 401(t), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “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;

“(2) the initial amount of stock of such association;

“(3) the territory within which the operations of the association may be carried on; and

“(4) to direct at any time changes in the charter of such association as the Farm Credit Administration finds necessary in accomplishing the purposes of this chapter.”

Statutory Notes and Related SubsidiariesEffective Date of 1988 Amendment

Amendment by Pub. L. 100–399 effective immediately after amendment made by section 401 of Pub. L. 100–233, which was effective 6 months after Jan. 6, 1988, see section 1001(b) of Pub. L. 100–399, set out as a note under section 2002 of this title.

Effective Date

Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1622, provided that this section is effective 6 months after Jan. 6, 1988.

Notes of Decisions

Cited in 30 cases, 1980–2012 · leading case: In Re Hoag Ranches, Debtor. Hoag Ranches v. Stockton Production Credit Association

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In Re Hoag Ranches, Debtor. Hoag Ranches v. Stockton Production Credit Association (1988) ca9 · cites it 2× “Nor is it dispositive that the organization is designated as a federal instrumentality, as Production Credit Agencies are under 12 U.S.C. § 2091 . Many financial institutions are federally chartered and regulated and are considered federal instrumentalities, without attaining…”

Clarence B. Bailey v. Federal Intermediate Credit Bank of St. Louis (1986) ca8 · cites it 2× “See 12 U.S.C. §§ 2091 , 2252(a)(2). Thus, Bailey argues, bylaw section 500.”

Don Boyster and James Shoffner v. O. R. Roden, Michael Hare and Phillip Lassiter (1980) ca8 · cites it 2× “12 U.S.C. § 2091 provides for the organization of production credit associations by “ten or more farmers or ranchers or producers or harvesters of aquatic products desiring to borrow money under the provisions” of Title II of the Farm Credit Act of 1971, 12 U.”

Charles Stinson Smith and Jimmie Dean Smith v. Russellville Production Credit Association (1985) ca11 “” 12 U.S.C.A. § 2091 . A federal instrumentality does not divest itself of the privileges of instrumentality status when it acts more like a privately owned institution than a federal agency.”

Ray Rohweder v. Aberdeen Production Credit Association (1985) ca8 “12 U.S.C. § 2091 (1982). Rohweder argues that the “sue and be sued” clause in the enabling legislation for Production Credit Associations constitutes express authorization for punitive damage awards.”

Matthews v. Federal Land Bank of St. Louis (1986) moctapp · cites it 2× “597 (1971) (codified at 12 U.S.C. § 2091 ). The legislative history of the 1971 amendments explains that the 1933 language was “substantially retained to support the existing [production credit] associations as federal instrumentalities.”

Buckeye Production Credit, Ass'n v. United States (1990) dcd · cites it 2× “10 of the Farm Credit Act of 1971, as amended (codified at 12 U.S.C. § 2091 ). Plaintiffs assert that the FCA can deny a charter amendment only “for good cause shown,” 12 U.”

Farmers Production Credit Ass'n v. State (1984) vt · cites it 3× “12 U.S.C. § 2091 . The Association points out that the Farm Credit Act of 1971 describes production credit associations chartered under the Act or under the Farm Credit Act of 1933 as “instrumentalities of the United States.”

Kolb v. Naylor (1987) iand “See 12 U.S.C. § 2091 et seq. The plaintiffs have made no allegations to the effect that they are entitled to bring an action either as a director or via an ownership interest in a derivative action.”

Indiana Department of State Revenue v. Farm Credit Services of Mid-America (2000) ind · cites it 2× “12 U.S.C.A. § 2091 (West 1989); H.R.Rep. No.”

Amarillo Production Credit Association v. Farm Credit Administration (1989) ca5 “” 12 U.S.C. § 2091 (current version at 12 U.”

Taylor Enterprise, Inc. v. Clarinda Production Credit Ass'n (1987) iowa · cites it 3× “257 (1933) (now codified as amended at 12 U.S.C. § 2091 ). Amendments to the Farm Credit Act in 1971 continued the treatment of PCAs and FICBs as “federally chartered instrumentalities.”

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