---
kind: "section"
citation: "12 U.S.C. § 2015"
title: "12"
title_heading: "Banks and Banking"
number: "2015"
heading: "Lending authority"
release: "119-102"
url: "https://uscodex.org/usc/12/2015"
units:
  - "Chapter 23 — Farm Credit System"
  - "Subchapter I — Farm Credit Banks"
---

# §2015. Lending authority

- (a) **Real estate loans and related assistance—**
  - (1) **Real estate loans—** The Farm [Credit](/usc/12/5481.md?p=7) [Banks](/usc/12/221a.md?p=a) may make or [participate](/usc/12/2206a.md?p=a-1) with other lenders in long-term [real estate](/usc/12/1715z–20.md?p=b-2) [mortgage](/usc/12/1707.md?p=a) loans in rural areas, as defined by the Farm [Credit](/usc/12/5481.md?p=7) Administration, or to producers or harvesters of aquatic products, and make continuing commitments to make such loans under specified circumstances, for a term of not less than 5 nor more than 40 years.
  - (2) **Financial assistance—** The Farm [Credit](/usc/12/5481.md?p=7) [Banks](/usc/12/221a.md?p=a) may provide and extend financial assistance to, and discount for, or purchase from, a Federal land [bank](/usc/12/1426a.md?p=g-1) [association](/usc/12/1828.md?p=s-4-E-i) any note, draft, or other obligation with the endorsement or guarantee of the [association](/usc/12/1828.md?p=s-4-E-i), the proceeds of which have been advanced to [persons](/usc/12/5481.md?p=19) eligible and for purposes of financing by the [association](/usc/12/1828.md?p=s-4-E-i), as authorized under [section 2279b(a) of this title](/usc/12/2279b.md?p=a).
- (b) **Intermediate credit—**
  - (1) **In general—** The Farm [Credit](/usc/12/5481.md?p=7) [Banks](/usc/12/221a.md?p=a) are authorized to make loans and extend other similar financial assistance to and to discount for or purchase from—
    - (A) any production [credit](/usc/12/5481.md?p=7) [association](/usc/12/1828.md?p=s-4-E-i), or
    - (B) any [national bank](/usc/12/221a.md?p=a), [State bank](/usc/12/1835a.md?p=e-1), trust [company](/usc/12/24a.md?p=g-1), agricultural [credit](/usc/12/5481.md?p=7) [corporation](/usc/12/2277a.md?p=2), incorporated livestock loan [company](/usc/12/24a.md?p=g-1), savings [institution](/usc/12/2162.md?p=d-3), [credit union](/usc/12/3423.md?p=a-1-E), or any [association](/usc/12/1828.md?p=s-4-E-i) of agricultural producers engaged in the making of loans to farmers and ranchers, and any [corporation](/usc/12/2277a.md?p=2) engaged in the making of loans to producers or harvesters of aquatic products,

    any note, draft, or other obligation with the [institution](/usc/12/2162.md?p=d-3)’s endorsement or guarantee, the proceeds of which note, draft, or other obligation have been advanced to [persons](/usc/12/5481.md?p=19) and for purposes eligible for financing by production [credit](/usc/12/5481.md?p=7) [associations](/usc/12/1828.md?p=s-4-E-i) as authorized by this chapter.

  - (2) **Participation with other entities—** The Farm [Credit](/usc/12/5481.md?p=7) [Banks](/usc/12/221a.md?p=a) may [participate](/usc/12/2206a.md?p=a-1) with one or more production [credit](/usc/12/5481.md?p=7) [associations](/usc/12/1828.md?p=s-4-E-i) or other Farm [Credit](/usc/12/5481.md?p=7) [Banks](/usc/12/221a.md?p=a) in the making of loans to eligible borrowers and may [participate](/usc/12/2206a.md?p=a-1) with 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).
  - (3) **Limitations on extension of financial services—**
    - (A) **General rule—** No paper shall be purchased from or discounted for, and no loans shall be made or other similar financial assistance extended by a Farm [Credit](/usc/12/5481.md?p=7) [Bank](/usc/12/1426a.md?p=g-1) to any entity identified in paragraph (1)(B) of this subsection if the amount of such paper added to the aggregate liabilities of such entity, whether direct or contingent (other than bona fide [deposit](/usc/12/5301.md?p=18-A) liabilities), exceeds ten times the paid-in and unimpaired [capital](/usc/12/51c.md) and surplus of such entity or the amount of such liabilities permitted under the laws of the jurisdiction creating such [institution](/usc/12/2162.md?p=d-3), whichever is the lesser.
    - (B) **Limitation on national bank—** It shall be unlawful for any [national bank](/usc/12/221a.md?p=a) which is indebted to any Farm [Credit](/usc/12/5481.md?p=7) [Bank](/usc/12/1426a.md?p=g-1), on paper discounted or purchased under [paragraph (1)](#b-1), to incur any additional indebtedness, if by virtue of such additional indebtedness its aggregate liabilities direct or contingent, will exceed the limitation described in [subparagraph (A)](#b-3-A).
  - (4) **FCA regulations—**
    - (A) **In general—** All of the loans, financial assistance, discounts and purchases authorized by this subsection shall be subject to regulations of the Farm [Credit](/usc/12/5481.md?p=7) Administration and shall be secured by collateral, if any, as may be required in such regulations.
    - (B) **Requirement of regulations—** The regulations shall assure that such loans, financial assistance, discounts, and purchases are available on a reasonable basis to any financing [institution](/usc/12/2162.md?p=d-3) authorized to receive such services under paragraph (1)(B) of this subsection, and that—
      - (i) is significantly involved in lending for agricultural or aquatic purposes;
      - (ii) demonstrates a continuing need for supplementary sources of [funds](/usc/12/4702.md?p=10) to meet the [credit](/usc/12/5481.md?p=7) requirements of its agricultural or aquatic borrowers;
      - (iii) has limited access to national or regional [capital](/usc/12/51c.md) markets; and
      - (iv) does not use such services to expand its financing activities to [persons](/usc/12/5481.md?p=19) and for purposes other than those authorized under subchapter II.
    - (C) **Fees—** The regulations may authorize a Farm [Credit](/usc/12/5481.md?p=7) [Bank](/usc/12/1426a.md?p=g-1) to charge reasonable fees for any commitment to extend service under this section to such a financing [institution](/usc/12/2162.md?p=d-3).
    - (D) **Subsidiaries and affiliates—** For purposes of this subsection, a financing [institution](/usc/12/2162.md?p=d-3) together with the [subsidiaries](/usc/12/24a.md?p=g-1) and [affiliates](/usc/12/24a.md?p=g-1) of such may be considered as one, but such determination to consider such [institution](/usc/12/2162.md?p=d-3) together with the [subsidiaries](/usc/12/24a.md?p=g-1) and [affiliates](/usc/12/24a.md?p=g-1) of such as one shall be made in the first instance by the [bank](/usc/12/1426a.md?p=g-1) and in the event of a denial by the [bank](/usc/12/1426a.md?p=g-1) of its services to a [financial institution](/usc/12/1715k.md?p=h-1-C), then by the Farm [Credit](/usc/12/5481.md?p=7) Administration on a case-by-case basis with due regard to the total relationship of the financing [institution](/usc/12/2162.md?p=d-3), its [subsidiaries](/usc/12/24a.md?p=g-1), and [affiliates](/usc/12/24a.md?p=g-1).
  - (5) **Effective date—** Nothing in this section shall require termination of discount relationships in existence on December 24, 1980.

## Source credit

(Pub. L. 92–181, title I, § 1.7, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1625; amended Pub. L. 100–399, title IV, § 401(e), (f), Aug. 17, 1988, 102 Stat. 995, 996.)

## Notes

### Editorial Notes

### Codification

In subsec. (b)(5), “December 24, 1980” substituted for “the effective date of the Farm Credit Act Amendments of 1980”.

### Prior Provisions

A prior section 2015, Pub. L. 92–181, title I, § 1.7, Dec. 10, 1971, 85 Stat. 585; Pub. L. 96–592, title I, § 104, Dec. 24, 1980, 94 Stat. 3438; Pub. L. 99–509, title I, § 1033(a), Oct. 21, 1986, 100 Stat. 1877, related to interest rates and other charges, prior to the general amendment of this subchapter by Pub. L. 100–233, § 401.

### Amendments

1988—Subsec. (a). Pub. L. 100–399, § 401(e), inserted in heading “and related assistance” and amended text generally. Prior to amendment, text read as follows: “The Farm Credit Banks are authorized to make or participate with other lenders in long-term real estate mortgage loans in rural areas, as defined by the Farm Credit Administration, or to producers or harvesters of aquatic products, and make continuing commitments to make such loans under specified circumstances, for a term of not less than 5 nor more than 40 years.”

Subsec. (b)(2). Pub. L. 100–399, § 401(f)(1), struck out provision that banks may own and lease or lease with an option to purchase to persons eligible for assistance under this subchapter, equipment needed in the operations of such persons.

Subsec. (b)(3). Pub. L. 100–399, § 401(f)(2), substituted in heading “services” for “assistance” and in subpar. (B) “described in subparagraph (A)” for “herein contained”.

Subsec. (b)(4)(A). Pub. L. 100–399, § 401(f)(3), substituted “subsection” for “section”.

### Statutory Notes and Related Subsidiaries

### 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.