§ 1141e. — Loans to cooperative associations.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1141e]
TITLE 12--BANKS AND BANKING
CHAPTER 7A--AGRICULTURAL MARKETING
Sec. 1141e. Loans to cooperative associations
(a) Upon application by any cooperative association the
administration is authorized to make loans to it from the revolving fund
to assist in--
(1) the effective merchandising of agricultural commodities and
food products thereof and the financing of its operations;
(2) the construction or acquisition by purchase or lease, or
refinancing the cost of such construction or acquisition, of
physical facilities.
(b) No loan shall be made to any cooperative association unless, in
the judgment of the administration, the loan is in furtherance of the
policy declared in section 1141 of this title, and the cooperative
association applying for the loan has an organization and management,
and business policies, of such character as to insure the reasonable
safety of the loan and the furtherance of such policy.
(c) Loans for the construction or acquisition by purchase or lease
of physical facilities, or for refinancing the cost of such construction
or acquistion,\1\ shall be subject to the following conditions:
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\1\ So in original. Probably should be ``acquisition,''.
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(1) No loan shall be made in an amount in excess of 60 per
centum of the appraised value of the security therefor.
(2) No loan for the purchase or lease of such facilities shall
be made unless the Governor of the Farm Credit Administration finds
that the purchase price or rent to be paid is reasonable.
(d) Loans for the construction or purchase of physical facilities,
together with interest on the loans, shall be repaid upon an
amortization plan over a period not in excess of twenty years.
(June 15, 1929, ch. 24, Sec. 7, 46 Stat. 14; Ex. Ord. No. 6084, Mar. 27,
1933; June 16, 1933, ch. 98, title V, Secs. 50-53, 48 Stat. 265; June 3,
1935, ch. 164, Secs. 9, 10, 49 Stat. 316.)
Codification
Section was formerly classified to section 527 of Title 7,
Agriculture.
Amendments
1935--Subsecs. (a)(2), (c)(1). Act June 3, 1935, amended subsecs.
(a)(2) and (c)(1).
1933--Act June 16, 1933, repealed provisions authorizing loans to
form clearing house associations; for education of producers in
advantages of cooperative marketing; and to enable cooperatives to
advance a greater share of the market price of commodities than was
practicable under other credit facilities.
Change of Name
``Administration'' substituted in text for ``board'' pursuant to Ex.
Ord. No. 6084, set out preceding section 2241 of this title.
Transfer of Functions
Establishment of Farm Credit Administration as an independent
agency, composition of Farm Credit Administration, appointment of
Governor of Farm Credit Administration, and duties thereof, including
duty to perform functions, etc., of Farm Credit Administration, see
section 2241 et seq. of this title.
Exceptions From Transfer of Functions
Functions of Farm Credit Administration or any agency, officer, or
entity of, under, or subject to supervision of said Administration
excepted from functions of officers, agencies, and employees transferred
to Secretary of Agriculture by Reorg. Plan No. 2 of 1953, Sec. 1, eff.
June 4, 1953, 18 F.R. 3219, 67 Stat. 633, set out in the Appendix to
Title 5, Government Organization and Employees.
