§ 2131. Loans
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/usc/title-12/section-2131A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Interest rates and charges Loans made by a bank for cooperatives shall bear interest at a rate or rates determined by the board of directors of the bank from time to time. In setting rates and charges, it shall be the objective to provide the types of credit needed by eligible borrowers at the lowest reasonable cost on a sound business basis, taking into account the net cost of money to the bank, necessary reserves and expenses of the bank, and services provided. The loan documents may provide for the interest rate or rates to vary from time to time during the repayment period of the loan, in accordance with the rate or rates currently being charged by the bank.
(b)Security Loans shall be made upon such terms, conditions, and security, if any, as may be determined by the bank in accordance with regulations of the Farm Credit Administration.
(c)Lien Each bank for cooperatives shall have a first lien on all stock or other equities in the bank as collateral for the payment of any indebtedness of the owner thereof to the bank.
(d)Cancellation; application on indebtedness In any case where the debt of a borrower is in default, or in any case of liquidation or dissolution of a present or former borrower from a bank for cooperatives, the bank may, but shall not be required to, retire and cancel all or a part of the stock, allocated surplus or contingency reserves, or any other equity in the bank owned by or allocated to such borrower, at the fair market value thereof not exceeding par, and, to the extent required in such cases, corresponding shares and allocations and other equity interests held by a bank in another bank for cooperatives (or any successor bank) on account of such indebtedness, shall be retired or equitably adjusted. In no event shall the bank’s equities be retired or canceled if the retirement or cancellation would adversely affect the bank’s capital structure, as determined by the Farm Credit Administration.
(Pub. L. 92–181, title III, § 3.10, Dec. 10, 1971, 85 Stat. 606; Pub. L. 96–592, title III, § 307, Dec. 24, 1980, 94 Stat. 3445; Pub. L. 99–509, title I, § 1033(c), Oct. 21, 1986, 100 Stat. 1877; Pub. L. 115–334, title V, § 5411(10), Dec. 20, 2018, 132 Stat. 4680.)
Connections15 cite this · traces to 2
Cited by 15 sections · top 12
public-private-law
statutes-at-large
- Public Law 96–592To amend the Farm Credit Act of 1971 to permit Farm Credit System institutions to improve their services to borrowers, and for other purposes
- Public Law 99–508To amend title 18, United States Code, with respect to the interception of certain communications, other forms of surveillance, and for other purposes
- Public Law 115–334To provide for the reform and continuation of agricultural and other programs of the Department of Agriculture through fiscal year 2023, and for other purposes
- Public Law 100–233To provide credit assistance to farmers, to strengthen the Farm Credit System, to facilitate the establishment of secondary markets for agricultural loans, and for other purposes
statute-compilations
Traces to 2 documents
public-private-law
U.S. Code
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- Pub. L. 92–181, title III, § 3
- 85 Stat. 606
- Pub. L. 96–592, title III, § 307
- 94 Stat. 3445
- Pub. L. 99–509, title I, § 1033(c)
- 100 Stat. 1877
- 132 Stat. 4680
- Pub. L. 99–509
- Pub. L. 96–592, § 307(1)
- Pub. L. 96–592, § 307(2)
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§ 2131
Loans
Bills×8
Stat.×4
Stat. Comp.×2
Pub. L.×1
Pub. L.Pub. L. 92–181, title III, § 3
Stat.85 Stat. 606
Pub. L.Pub. L. 96–592, title III, § 307
Stat.94 Stat. 3445
Pub. L.Pub. L. 99–509, title I, § 1033(c)
Cites 12 · showing 7Cited by 15 across 4 sources