---
kind: "section"
citation: "12 U.S.C. § 2096"
title: "12"
title_heading: "Banks and Banking"
number: "2096"
heading: "Agreements for sharing gains or losses"
release: "119-102"
url: "https://uscodex.org/usc/12/2096"
units:
  - "Chapter 23 — Farm Credit System"
  - "Subchapter II — Farm Credit Associations"
  - "Part B — Federal Land Bank Associations"
---

# §2096. Agreements for sharing gains or losses


Each Farm [Credit](/usc/12/5481.md?p=7) [Bank](/usc/12/1426a.md?p=g-1) may enter into agreements with Federal land [bank](/usc/12/1426a.md?p=g-1) [associations](/usc/12/1828.md?p=s-4-E-i) in its [district](/usc/12/221a.md?p=a) for sharing the gain or losses on loans or on security held therefor or acquired in liquidation thereof, and [associations](/usc/12/1828.md?p=s-4-E-i) are authorized to enter into any such agreements and also, subject to [bank](/usc/12/1426a.md?p=g-1) approval, agreements with other [associations](/usc/12/1828.md?p=s-4-E-i) in the [district](/usc/12/221a.md?p=a) for sharing the risk of loss on loans endorsed by each such [association](/usc/12/1828.md?p=s-4-E-i). As may be authorized by the [bank](/usc/12/1426a.md?p=g-1) in accordance with regulations of the Farm [Credit](/usc/12/5481.md?p=7) Administration, [associations](/usc/12/1828.md?p=s-4-E-i) also may enter into agreements 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.


## Source credit

(Pub. L. 92–181, title II, § 2.14, formerly § 2.15, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1636; renumbered § 2.14, Pub. L. 100–399, title IV, § 401(w), Aug. 17, 1988, 102 Stat. 999.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 2096, Pub. L. 92–181, title II, § 2.15, Dec. 10, 1971, 85 Stat. 601; Pub. L. 96–592, title II, § 210, Dec. 24, 1980, 94 Stat. 3442; Pub. L. 99–205, title II, § 205(b), Dec. 23, 1985, 99 Stat. 1703; Pub. L. 100–233, title IV, § 431(f), title VIII, § 805(i), Jan. 6, 1988, 101 Stat. 1660, 1715; Pub. L. 100–399, title IV, § 415(b), Aug. 17, 1988, 102 Stat. 1004, related to short- and intermediate-term loans, participation, other financial assistance, terms, conditions, interest, and security, prior to the general amendment of this subchapter by Pub. L. 100–233, § 401.

A prior section 2.14 of Pub. L. 92–181 was classified to section 2095 of this title and was repealed by Pub. L. 100–399, § 401(v).

### Statutory Notes and Related Subsidiaries

### 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.