---
kind: "section"
citation: "12 U.S.C. § 2091"
title: "12"
title_heading: "Banks and Banking"
number: "2091"
heading: "Organizations; articles; charters; powers of the Farm Credit Administration"
release: "119-102"
url: "https://uscodex.org/usc/12/2091"
units:
  - "Chapter 23 — Farm Credit System"
  - "Subchapter II — Farm Credit Associations"
  - "Part B — Federal Land Bank Associations"
---

# §2091. Organizations; articles; charters; powers of the Farm Credit Administration

- (a) **Charter—** Each Federal land [bank](/usc/12/1426a.md?p=g-1) [association](/usc/12/1828.md?p=s-4-E-i) shall continue as a federally chartered instrumentality of the United States.
- (b) **Organization—**
  - (1) **In general—** A Federal land [bank](/usc/12/1426a.md?p=g-1) [association](/usc/12/1828.md?p=s-4-E-i) may be organized by any group of 10 or more [persons](/usc/12/5481.md?p=19) desiring to borrow money from a Farm [Credit](/usc/12/5481.md?p=7) [Bank](/usc/12/1426a.md?p=g-1) under [section 2015(a) of this title](/usc/12/2015.md?p=a), [including](/usc/12/25b.md?p=a-3) [persons](/usc/12/5481.md?p=19) to whom the Farm [Credit](/usc/12/5481.md?p=7) [Bank](/usc/12/1426a.md?p=g-1) has made a loan directly or through an agent and has taken as security [real estate](/usc/12/1715z–20.md?p=b-2) located in the territory proposed to be served by the [association](/usc/12/1828.md?p=s-4-E-i).
  - (2) **Articles of association—**
    - (A) **Description of territory—** The articles of [association](/usc/12/1828.md?p=s-4-E-i) shall describe the territory within which the [association](/usc/12/1828.md?p=s-4-E-i) proposes to carry on its operations.
    - (B) **Submission to FCB—** Proposed articles shall be forwarded to the Farm [Credit](/usc/12/5481.md?p=7) [Bank](/usc/12/1426a.md?p=g-1) for the [district](/usc/12/221a.md?p=a), accompanied by an agreement to subscribe on behalf of the [association](/usc/12/1828.md?p=s-4-E-i) for stock in accordance with the bylaws of the Farm [Credit](/usc/12/5481.md?p=7) [Bank](/usc/12/1426a.md?p=g-1).
    - (C) **Stock purchase—** [Association](/usc/12/1828.md?p=s-4-E-i) stock may be paid for by surrendering for cancellation stock in the [bank](/usc/12/1426a.md?p=g-1) held by a borrower and the issuance of an equivalent amount of stock to such borrower in the [association](/usc/12/1828.md?p=s-4-E-i).
    - (D) **Statement—** The articles shall be accompanied by a statement signed by each of the [members](/usc/12/1426a.md?p=g-1) of the proposed [association](/usc/12/1828.md?p=s-4-E-i) establishing—
      - (i) the individual’s eligibility and request for a Farm [Credit](/usc/12/5481.md?p=7) [Bank](/usc/12/1426a.md?p=g-1) loan;
      - (ii) that the [real estate](/usc/12/1715z–20.md?p=b-2) with respect to which the individual desires the loan for is not being served by another Federal land [bank](/usc/12/1426a.md?p=g-1) [association](/usc/12/1828.md?p=s-4-E-i); and
      - (iii) that the individual is or will become a stockholder in the proposed [association](/usc/12/1828.md?p=s-4-E-i).
    - (E) **Submission to FCA—** A copy of the articles of [association](/usc/12/1828.md?p=s-4-E-i) shall be forwarded to the Farm [Credit](/usc/12/5481.md?p=7) Administration with the recommendations of the [bank](/usc/12/1426a.md?p=g-1) concerning the need for the proposed [association](/usc/12/1828.md?p=s-4-E-i) in order to adequately serve the [credit](/usc/12/5481.md?p=7) needs of eligible [persons](/usc/12/5481.md?p=19) in the proposed territory and a statement as to whether or not the territory [includes](/usc/12/25b.md?p=a-3) any territory described in the charter of another Federal land [bank](/usc/12/1426a.md?p=g-1) [association](/usc/12/1828.md?p=s-4-E-i).
  - (3) **Denials of charters—** The Farm [Credit](/usc/12/5481.md?p=7) Administration for good cause shown may deny the charter applied for.
  - (4) **Approval of articles—** On the approval of the proposed articles by the Farm [Credit](/usc/12/5481.md?p=7) Administration and the issuance of such charter, the [association](/usc/12/1828.md?p=s-4-E-i) shall become as of such date a federally chartered body corporate and an instrumentality of the United States.
- (c) **FCA authority on organization—** The Farm [Credit](/usc/12/5481.md?p=7) Administration shall have power, in the terms of the charter, under rules and regulations prescribed by the Farm [Credit](/usc/12/5481.md?p=7) Administration—
  - (1) to provide for the organization of the [association](/usc/12/1828.md?p=s-4-E-i);
  - (2) to provide for the initial amount of stock of the [association](/usc/12/1828.md?p=s-4-E-i);
  - (3) to provide for the territory within which the [association](/usc/12/1828.md?p=s-4-E-i) may carry on its operations; and
  - (4) to approve amendments to the charter of such [association](/usc/12/1828.md?p=s-4-E-i).

## Source credit

(Pub. L. 92–181, title II, § 2.10, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1634; amended Pub. L. 100–399, title IV, § 401(s), (t), Aug. 17, 1988, 102 Stat. 998.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 2091, Pub. L. 92–181, title II, § 2.10, Dec. 10, 1971, 85 Stat. 597; Pub. L. 96–592, title II, § 207, Dec. 24, 1980, 94 Stat. 3442; Pub. L. 99–205, title II, § 205(e)(10), Dec. 23, 1985, 99 Stat. 1704; Pub. L. 100–233, title VIII, §§ 802(l), 805(g), Jan. 6, 1988, 101 Stat. 1711, 1715, related to organization and charters of production credit associations, prior to the general amendment of this subchapter by Pub. L. 100–233, § 401.

### Amendments

1988—Subsec. (b)(1). Pub. L. 100–399, § 401(s)(1), inserted “under section 2015(a) of this title” after “a Farm Credit Bank”.

Subsec. (b)(2)(D)(i). Pub. L. 100–399, § 401(s)(2), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “the individual’s eligibility for, and request or need of the individual of a Farm Credit Bank loan;”.

Subsec. (c). Pub. L. 100–399, § 401(t), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “The Farm Credit Administration shall have power, in the terms of the charter, under rules and regulations prescribed by the Farm Credit Administration or by approving the bylaws of the association, to provide for the—

“(1) organization of the association;

“(2) the initial amount of stock of such association;

“(3) the territory within which the operations of the association may be carried on; and

“(4) to direct at any time changes in the charter of such association as the Farm Credit Administration finds necessary in accomplishing the purposes of this chapter.”

### 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.