Source: https://www.law.cornell.edu/uscode/text/12/2279aa%E2%80%936
Timestamp: 2019-02-22 06:28:13
Document Index: 400478451

Matched Legal Cases: ['§ 2279', '§ 2279', '§\u202f2279', '§\u202f8', '§\u202f702', '§\u202f601', '§\u202f503', '§\u202f107', '§\u202f5406', '§\u202f4', '§\u202f5406', '§\u202f5406', '§\u202f107', '§\u202f108', '§\u202f108', '§\u202f109', '§\u202f109', '§\u202f109', '§\u202f107', '§\u202f109', '§\u202f109', '§\u202f107', '§\u202f601', '§\u202f601', '§\u202f601']

12 U.S. Code § 2279aa-6 - Guarantee of qualified loans | US Law | LII / Legal Information Institute
12 U.S. Code § 2279aa-6 - Guarantee of qualified loans
§ 2279aa–6.
Guarantee of qualified loans
(1) In generalSubject to the requirements of this section and on such other terms and conditions as the Corporation shall consider appropriate, the Corporation—
(b) Other responsibilities of and limitations on certified facilitiesAs a condition for providing any guarantees under this section for securities issued by a certified facility that represent interests in, or obligations backed by, any pool of qualified loans, the Corporation shall require such facility to agree to comply with the following requirements:
The facility shall act in accordance with the standards of a prudent institutional lender to resolve loandefaults.
(2) Subrogation of United States and Corporation to interests of facilityThe proceeds of any collateral, judgments, settlements, or guarantees received by the facility with respect to any loan in such pool, shall be applied, after payment of costs of collection—
(c) Additional authority of BoardTo ensure the liquidity of securities for which guarantees have been provided under this section, the Board shall adopt appropriate standards regarding—
(d) Aggregate principal amounts of qualified loans
(1) Initial year
During the first year after January 6, 1988, the Corporation may not provide guarantees for securities representing interests in, or obligations backed by, qualified loans (other than loans which back securities issued by Farm Credit System institutions for which the Corporation provides a guarantee) in an aggregate principal amount in excess of 2 percent of the total agricultural real estate debt outstanding at the close of the prior calendar year (as published by the Board of Governors of the Federal Reserve System), less all Farmers Home Administration agricultural real estate debt.
During the year following the year referred to in paragraph (1), the Corporation may not provide guarantees for securities representing interests in, or obligations backed by, qualified loans (other than loans which back securities issued by Farm Credit System institutions for which the Corporation provides a guarantee) in an additional principal amount in excess of 4 percent of the total agricultural real estate debt outstanding at the close of the prior calendar year, less all Farmers Home Administration agricultural real estate debt.
(3) Third year
During the year following the year referred to in paragraph (2), the Corporation may not provide guarantees for securities representing interests in, or obligations backed by, qualified loans (other than loans which back securities issued by Farm Credit System institutions for which the Corporation provides a guarantee) in an additional principal amount in excess of 8 percent of the total agricultural real estate debt outstanding at the close of the prior calendar year, less all Farmers Home Administration agricultural real estate debt.
(4) Subsequent years
In years subsequent to the year referred to in paragraph (3), the Corporation may provide guarantees without regard to the principal amount of the qualified loans guaranteed.
(e) Purchase of guaranteed securities
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(9) of this title), and for maintaining reasonable amounts for business operations (including adequate liquidity) relating to activities under this subsection.
(Pub. L. 92–181, title VIII, § 8.6, as added Pub. L. 100–233, title VII, § 702, Jan. 6, 1988, 101 Stat. 1695; amended Pub. L. 100–399, title VI, § 601(f)–(h), Aug. 17, 1988, 102 Stat. 1005; Pub. L. 102–237, title V, § 503(d), Dec. 13, 1991, 105 Stat. 1877; Pub. L. 104–105, title I, §§ 107, 108(a), (c)(2), 109(a), (b)(4), Feb. 10, 1996, 110 Stat. 164, 165; Pub. L. 110–234, title V, § 5406(b), May 22, 2008, 122 Stat. 1158; Pub. L. 110–246, § 4(a), title V, § 5406(b), June 18, 2008, 122 Stat. 1664, 1920.)
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. (b). Pub. L. 104–105, §§ 108(a), 109(a)(2), redesignated subsec. (d) as (b) and struck out heading and text of former subsec.(b). Text read as follows: “In the case of any pool referred to in subsection (a) of this section, the Corporation shall—
Subsec. (b)(4) to (6). Pub. L. 104–105, § 109(b)(4), redesignated pars. (5) and (6) as (4) and (5), respectively, and struck out heading and text of former par. (4). Text read as follows: “The facility shall comply with the standards adopted by the Board under subsection (c) of this section in establishing and maintaining the pool.”
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).
Subsec. (d)(4) to (7). Pub. L. 104–105, § 107(2), redesignated pars. (5) to (7) as (4) to (6), respectively, and struck out heading and text of former par. (4). Text read as follows: “Each loan in the pool shall have been sold to the certified facility without recourse to the originator of such loan (other than recourse to any interest of such originator in a reserve established in connection with such loan or any subordinated participation interest of such originator in such loan).”
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”.
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,”.