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United States Code (Last Updated: May 24, 2014) |
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Title 12. BANKS AND BANKING |
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Chapter 23. FARM CREDIT SYSTEM |
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SubChapter V. FARM CREDIT ADMINISTRATION ORGANIZATION |
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Part E. Farm Credit System Insurance Corporation |
§ 2277a–9. Insurance Fund
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(a) Establishment There is hereby established a Farm Credit Insurance Fund (hereinafter referred to in this section as the “Insurance Fund”) for insuring the timely payment of principal and interest on insured obligations. The assets in the Fund shall be held by the Corporation for the uses and purposes of the Corporation.
(b) Amounts in Fund (1) Revolving fund All amounts in the revolving fund established by section 2151 of this title shall be transferred into the Farm Credit Insurance Fund on
January 1, 1989 , or 12 months afterJanuary 6, 1988 , whichever is later, except that the obligations to, and rights of, any person in such revolving fund arising out of any event or transaction beforeJanuary 6, 1988 , shall remain unimpaired.(2) Deposit of premiums The Corporation shall deposit in the Insurance Fund all premium payments received by the Corporation under this part.
(c) Uses of Fund (1) Mandatory use Beginning
January 1, 1993 , the Corporation shall expend amounts in the Insurance Fund to the extent necessary to insure the timely payment of interest and principal on insured obligations.(2) Other mandatory uses Beginning January 1, 1993 , the Corporation shall use amounts in the Insurance Fund to—(A) satisfy System institution defaults through the purchase of preferred stock or other payments as provided for in section 2278b–6(d)(3) of this title; and (B) ensure the retirement of eligible borrower stock at par value under section 2162 of this title. (3) Permissive uses The Corporation may expend amounts in the Insurance Fund to carry out section 2277a–10 of this title and to cover the operating costs of the Corporation.
(4) Corporate payment or refunds The Corporation shall make all payments and refunds required to be made by the Corporation under this part from amounts in the Insurance Fund.
Amendments
1990—Subsec. (c)(1), (2). Pub. L. 101–624 substituted “
1988—Subsec. (b)(1). Pub. L. 100–399, § 302(j), struck out “(in effect immediately before
Subsec. (b)(2). Pub. L. 100–399, § 302(k), substituted “The” for “Beginning 5 years after
Subsec. (c)(2)(B). Pub. L. 100–399, § 302(l), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “ensure the retirement of borrower stock at par value and participation certificates or other similar equities at face value as provided for under section 2162(c)(2) of this title.”
Effective Date Of Amendment
Amendment by Pub. L. 100–399 effective as if enacted immediately after enactment of Pub. L. 100–233, which was approved