Source: https://www.law.cornell.edu/uscode/text/12/2279aa-6
Timestamp: 2019-04-18 10:47:45+00:00

Document:
have been purchased and held by the Corporation.
If the facility is unable to make any payment of principal or interest on any security for which a guarantee has been provided by the Corporation under paragraph (1), the Corporation shall make such payment as and when due in cash, and on such payment shall be subrogated fully to the rights satisfied by such payment.
Notwithstanding any other provision of law, the Corporation is empowered, in connection with any guarantee under this subsection, whether before or after any default, to provide by contract with the facility for the extinguishment, on default by the facility, of any redemption, equitable, legal, or other right, title, or interest of the facility in any mortgage or mortgages constituting the pool against which the guaranteed securities are issued. With respect to any issue of guaranteed securities, in the event of default and pursuant otherwise to the terms of the contract, the mortgages that constitute such pool shall become the absolute property of the Corporation subject only to the unsatisfied rights of the holders of the securities based on and backed by such pool.
The facility shall act in accordance with the standards of a prudent institutional lender to resolve loandefaults.
second, to reimburse the Corporation for any such guarantee payments.
The originator of any loan in such pool shall be permitted to retain the right to service the loan.
The facility shall take such steps as may be necessary to ensure that minority owned or controlled investment banking firms, underwriters, and bond counsels throughout the United States have an opportunity to participate to a significant degree in any public offering of securities.
The facility may not refuse to purchase qualified loans originating in States that have established borrowers rights laws either by statute or under the constitution of such States, except that the facility may require discounts or charge fees reasonably related to costs and expenses arising from such statutes or constitutional provisions.
The Corporation (and affiliates) may purchase, hold, and sell any securities guaranteed under this section by the Corporation that represent interests in, or obligations backed by, pools of qualified loans. Securities issued under this section shall have maturities and bear rates of interest as determined by the Corporation.
The Corporation (and affiliates) may issue debt obligations solely for the purpose of obtaining amounts for the purchase of any securities under paragraph (1), for the purchase of qualified loans (as defined in section 2279aa of this title), and for maintaining reasonable amounts for business operations (including adequate liquidity) relating to activities under this subsection.
The obligations issued under this subsection shall have maturities and bear rates of interest as determined by the Corporation, and may be redeemable at the option of the Corporation before maturity in the manner stipulated in the obligations.
Each obligation shall clearly indicate that the obligation is not an obligation of, and is not guaranteed as to principal and interest by, the Farm Credit Administration, the United States, or any other agency or instrumentality of the United States (other than the Corporation).
The Corporation may not issue obligations pursuant to paragraph (2) under this subsection while any obligation issued by the Corporation under section 2279aa–13(a) of this title remains outstanding.
2018—Subsec. (d). Pub. L. 115–334, § 5411(45)(A), (B), redesignated subsec. (e) as (d) and struck out former subsec. (d) which related to aggregate principal amounts of qualified loans and limits on provision of guarantees during certain years.
Subsec. (d)(2). Pub. L. 115–334, § 5411(45)(C), substituted “2279aa of this title)” for “2279aa(9) of this title)”.
Subsec. (e). Pub. L. 115–334, § 5411(45)(B), redesignated subsec. (e) as (d).
2008—Subsec. (a)(1)(A), (B)(i). Pub. L. 110–246, § 5406(b), inserted “applicable” before “standards”.
1996—Subsec. (a)(1). Pub. L. 104–105, § 107(1), designated part of existing text as subpar. (A) and added subpar. (B).
Subsec. (a)(2). Pub. L. 104–105, § 108(c)(2), struck out “subject to the provisions of subsection (b) of this section” after “paragraph (1),”.
Subsec. (c). Pub. L. 104–105, § 109(a), redesignated subsec. (e) as (c) and struck out heading and text of former subsec. (c) which related to standards requiring diversified pools, including establishment of minimum criteria for pools of qualified loans, provisions to encourage loans to small farms and family farmers, and requirements for congressional review of standards.
Subsec. (d). Pub. L. 104–105, § 109(a)(2), redesignated subsec. (f) as (d). Former subsec. (d) redesignated (b).
Subsecs. (e), (f). Pub. L. 104–105, § 109(a)(2), redesignated subsecs. (f) and (g) as (d) and (e), respectively. Former subsec. (e) redesignated (c).
Subsec. (g). Pub. L. 104–105, § 109(a)(2), redesignated subsec. (g) as (e).
Subsec. (g)(2). Pub. L. 104–105, § 107(3), substituted “2279aa(9) of this title” for “2279aa(9)(B) of this title”.
1991—Subsec. (g). Pub. L. 102–237 added subsec. (g).
1988—Subsec. (a)(1). Pub. L. 100–399, § 601(f), substituted “represents interests solely in, or obligations fully backed by, any pool consisting solely of qualified loans which meet the standards established under section 2279aa–8 of this title and which are” for “represents interests in, or obligations backed by, any pool of qualified loans”.
Subsec. (e). Pub. L. 100–399, § 601(g), redesignated par. (3) as (2) and struck out former par. (2) which read as follows: “registration requirements (if any) with respect to such securities; and”.
Subsec. (f)(1). Pub. L. 100–399, § 601(h), substituted “date of the enactment” for “effective date”, both of which for purposes of codification were translated as “January 6, 1988,”.

References: § 5411
 § 5411
 § 5411
 § 5406
 § 107
 § 108
 § 109
 § 109
 § 109
 § 109
 § 107
 § 601
 § 601
 § 601