---
kind: "section"
citation: "12 U.S.C. § 2021"
title: "12"
title_heading: "Banks and Banking"
number: "2021"
heading: "Loans through associations or agents"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/2021"
units:
  - "Chapter 23 — Farm Credit System"
  - "Subchapter I — Farm Credit Banks"
---

# §2021. Loans through associations or agents

- (a) **In general—** The Farm [Credit](/usc/12/5481.md?p=7) Banks shall, except as otherwise herein provided, make loans of the type authorized under [section 2015(a) of this title](/usc/12/2015.md?p=a) through a Federal land bank association chartered to serve the territory in which the [real estate](/usc/12/1707.md?p=g) of the borrower is located.
- (b) **No active association—** If there is no active association chartered to serve territory where the [real estate](/usc/12/1707.md?p=g) is located, the bank may make the loan directly or through such bank or trust company or savings or other financial [institution](/usc/12/2271.md?p=3) as such bank may designate.
- (c) **Purchase of stock required—** When the loan is not made through a Federal land bank association, the applicant shall purchase stock in the bank in accordance with the capitalization requirements provided for in the bylaws of the bank.

## Source credit

(Pub. L. 92–181, title I, § 1.13, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1628.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 1.13 of Pub. L. 92–181 was classified to section 2031 of this title prior to the general amendment of this subchapter by Pub. L. 100–233, § 401.

### 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.