---
kind: "section"
citation: "12 U.S.C. § 2013"
title: "12"
title_heading: "Banks and Banking"
number: "2013"
heading: "General corporate powers"
release: "119-102"
url: "https://uscodex.org/usc/12/2013"
units:
  - "Chapter 23 — Farm Credit System"
  - "Subchapter I — Farm Credit Banks"
---

# §2013. General corporate powers


Each Farm [Credit](/usc/12/5481.md?p=7) [Bank](/usc/12/1426a.md?p=g-1) shall be a body corporate and, subject to regulation by the Farm [Credit](/usc/12/5481.md?p=7) Administration, shall have power to—

- (1) adopt and use a corporate seal;
- (2) have succession until dissolved under the provisions of this chapter or other Act of Congress;
- (3) make contracts;
- (4) sue and be sued;
- (5) [acquire](/usc/12/1467a.md?p=a-1-J), hold, dispose, and otherwise exercise all the usual incidents of ownership of real and personal property necessary or convenient to its business;
- (6) make, [participate](/usc/12/2206a.md?p=a-1) in, and discount loans, make commitments for [credit](/usc/12/5481.md?p=7), accept advance payments, and provide services as authorized in this chapter, and charge fees for such;
- (7) operate under the direction of its [board](/usc/12/221a.md?p=a) of [directors](/usc/12/2279bb.md?p=3);
- (8) provide by its [board](/usc/12/221a.md?p=a) of [directors](/usc/12/2279bb.md?p=3) for a president, one or more vice presidents, a secretary, a treasurer, and provide for such other officers, employees, and agents as may be necessary, as provided in this chapter, define their duties, and require surety bonds or make other provision against losses occasioned by employees;
- (9) prescribe, by its [board](/usc/12/221a.md?p=a) of [directors](/usc/12/2279bb.md?p=3), its bylaws that shall be consistent with law, and that shall provide for—
  - (A) the classes of its stock and the manner in which such stock shall be issued, transferred, and retired; and
  - (B) the manner in which it is to—
    - (i) select officers, employees, and agents;
    - (ii) [acquire](/usc/12/1467a.md?p=a-1-J), hold, and transfer property;
    - (iii) make loans and discounts;
    - (iv) conduct general business; and
    - (v) exercise and enjoy the privileges granted to it by law;
- (10) borrow money and issue notes, bonds, debentures, or other obligations individually, or in concert with one or more other [banks](/usc/12/221a.md?p=a) of the System, of such character, terms, conditions, and rates of interest as may be determined as provided for in this chapter;
- (11) purchase nonvoting stock in, or pay in surplus to, and accept [deposits](/usc/12/5301.md?p=18-A) of securities or [funds](/usc/12/4702.md?p=10) from [associations](/usc/12/1828.md?p=s-4-E-i) in its [district](/usc/12/221a.md?p=a), and pay interest on such [funds](/usc/12/4702.md?p=10);
- (12) [participate](/usc/12/2206a.md?p=a-1) with—
  - (A) one or more other Farm [Credit](/usc/12/5481.md?p=7) [Banks](/usc/12/221a.md?p=a) in loans under this subchapter on such terms as may be agreed on among such [banks](/usc/12/221a.md?p=a);
  - (B) one or more other Farm [Credit](/usc/12/5481.md?p=7) [System institutions](/usc/12/2271.md?p=3) in loans made under this subchapter or other subchapters of this chapter on the basis prescribed in [section 2206 of this title](/usc/12/2206.md); and
  - (C) lenders that are not Farm [Credit](/usc/12/5481.md?p=7) [System institutions](/usc/12/2271.md?p=3) in loans that the [bank](/usc/12/1426a.md?p=g-1) is authorized to make under this subchapter;
- (13) approve the salary scale of the officers and employees of the [associations](/usc/12/1828.md?p=s-4-E-i) in its [district](/usc/12/221a.md?p=a) and supervise the exercise by such [associations](/usc/12/1828.md?p=s-4-E-i) of the functions vested in or delegated to them;
- (14) [deposit](/usc/12/5301.md?p=18-A) the securities and current [funds](/usc/12/4702.md?p=10) of the [bank](/usc/12/1426a.md?p=g-1) with any [member bank](/usc/12/221a.md?p=a) of the Federal Reserve System or any insured [State nonmember bank](/usc/12/5301.md?p=18-A) (within the meaning of [section 1813 of this title](/usc/12/1813.md)) and pay fees and receive interest on such as may be agreed, and when designated for that purpose by the Secretary of the Treasury, such [bank](/usc/12/1426a.md?p=g-1)—
  - (A) shall be a depository of public money, except receipts from customs, under such regulations as may be prescribed by the Secretary;
  - (B) may be employed as a fiscal agent of the Government; and
  - (C) shall perform all such reasonable duties as a depository of public money or financial agent of the Government as may be required of such [bank](/usc/12/1426a.md?p=g-1);

  except that no Government [funds](/usc/12/4702.md?p=10) deposited under the provisions of this paragraph shall be invested in loans or bonds or other obligations of the [bank](/usc/12/1426a.md?p=g-1);

- (15) buy and sell obligations of, or insured by, the United States or any [agency](/usc/12/1422.md?p=12) thereof, or securities backed by the full faith and [credit](/usc/12/5481.md?p=7) of any such [agency](/usc/12/1422.md?p=12), and make other investments as may be authorized under regulations issued by the Farm [Credit](/usc/12/5481.md?p=7) Administration;
- (16) sell to lenders that are not Farm [Credit](/usc/12/5481.md?p=7) [System institutions](/usc/12/2271.md?p=3) interests in loans, and buy from and sell to Farm [Credit](/usc/12/5481.md?p=7) [System institutions](/usc/12/2271.md?p=3) interests in loans and other extensions of [credit](/usc/12/5481.md?p=7), and nonvoting stock as may be authorized under regulations issued by the Farm [Credit](/usc/12/5481.md?p=7) Administration;
- (17) conduct studies and make and adopt standards for lending;
- (18) delegate to [associations](/usc/12/1828.md?p=s-4-E-i) such functions as the [bank](/usc/12/1426a.md?p=g-1) determines appropriate;
- (19) amend and modify loan contracts, documents, and payment schedules, and release, subordinate, or substitute security for any of such items;
- (20) for loans made by the [bank](/usc/12/1426a.md?p=g-1), require [associations](/usc/12/1828.md?p=s-4-E-i) to endorse notes and other obligations of borrowers from the [bank](/usc/12/1426a.md?p=g-1);
- (21) exercise through the [board](/usc/12/221a.md?p=a) of [directors](/usc/12/2279bb.md?p=3) or authorized officers, employees, or agents of the [bank](/usc/12/1426a.md?p=g-1), all such incidental powers as may be necessary or expedient to carry on the business of the [bank](/usc/12/1426a.md?p=g-1);
- (22) accept contributions to the [capital](/usc/12/51c.md) of the [bank](/usc/12/1426a.md?p=g-1) from [associations](/usc/12/1828.md?p=s-4-E-i) and account for such in accordance with generally accepted accounting principles, except as may be authorized by the Farm [Credit](/usc/12/5481.md?p=7) Administration;
- (23) as may be authorized by the [board](/usc/12/221a.md?p=a) of [directors](/usc/12/2279bb.md?p=3) of the [bank](/usc/12/1426a.md?p=g-1), agree with other Farm [Credit](/usc/12/5481.md?p=7) [System institutions](/usc/12/2271.md?p=3) to share loan and other losses, whether to protect against [capital](/usc/12/51c.md) impairment or for any other purpose; and
- (24) operate as an originator and become certified as a certified facility under subchapter VIII.

## Source credit

(Pub. L. 92–181, title I, § 1.5, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1623; amended Pub. L. 100–399, title IV, § 401(d), Aug. 17, 1988, 102 Stat. 995; Pub. L. 104–105, title II, § 201, Feb. 10, 1996, 110 Stat. 172.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 2013, Pub. L. 92–181, title I, § 1.5, Dec. 10, 1971, 85 Stat. 585; Pub. L. 96–592, title I, § 102, Dec. 24, 1980, 94 Stat. 3437; Pub. L. 99–205, title II, § 205(d)(2), (3), title VI, § 601, Dec. 23, 1985, 99 Stat. 1703, 1711; Pub. L. 100–233, title VIII, § 802(c), Jan. 6, 1988, 101 Stat. 1710, related to land bank stock, prior to the general amendment of this subchapter by Pub. L. 100–233, § 401.

### Amendments

1996—Par. (13). Pub. L. 104–105 struck out “, and the appointment and compensation of the chief executive officer thereof,” after “in its district”.

1988—Par. (9). Pub. L. 100–399, § 401(d)(1), amended par. (9) generally. Prior to amendment, par. (9) read as follows: “prescribe by its board of directors—

“(A) the bylaws of such bank that shall not be inconsistent with law, providing for the classes of the stock of the bank and the manner in which such stock shall be issued, transferred, and retired;

“(B) the officers, employees, and agents of the bank as provided for;

“(C) the property of the bank acquired, held, and transferred;

“(D) the loans and discounts made by the bank;

“(E) the general business conducted by the bank; and

“(F) the privileges granted to the bank by law exercised and enjoyed;”.

Par. (11). Pub. L. 100–399, § 401(d)(2), substituted “of securities or” for “or securities of”.

Par. (12)(B), (C). Pub. L. 100–399, § 401(d)(3), struck out “participate with” before “one or more” in subpar. (B) and “participate with” before “lenders that” in subpar. (C).

Par. (14). Pub. L. 100–399, § 401(d)(4), substituted “(within the meaning of section 1813 of this title)” for “as defined in section 1813 of this title”.

Par. (18). Pub. L. 100–399, § 401(d)(5), struck out “Federal land bank” after “delegate to”.

Par. (22). Pub. L. 100–399, § 401(d)(6), substituted “in accordance with generally accepted accounting principles, except as may be authorized by the Farm Credit Administration;” for “as authorized by the Farm Credit Administration; and”.

Par. (23). Pub. L. 100–399, § 401(d)(7), struck out “and approved by the Farm Credit Administration Board” after “of the bank” and substituted “purpose; and” for “purpose.”

Par. (24). Pub. L. 100–399, § 401(d)(8), added par. (24).

### Statutory Notes and Related Subsidiaries

### Effective Date of 1996 Amendment

Pub. L. 104–105, title III, § 302, Feb. 10, 1996, 110 Stat. 185, provided that: “Except as otherwise provided in this Act, this Act [see Short Title of 1996 Amendment note set out under section 2001 of this title] and the amendments made by this Act shall become effective on the date of enactment [Feb. 10, 1996].”

### Effective 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.