---
kind: "section"
citation: "12 U.S.C. § 2160"
title: "12"
title_heading: "Banks and Banking"
number: "2160"
heading: "Federal Farm Credit Banks Funding Corporation"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/2160"
units:
  - "Chapter 23 — Farm Credit System"
  - "Subchapter IV — Provisions Applicable to Two or More Classes of Institutions of the System"
  - "Part A — Funding"
---

# §2160. Federal Farm Credit Banks Funding Corporation

- (a) **Establishment—** There is hereby established the Federal Farm [Credit](/usc/12/5481.md?p=7) Banks Funding [Corporation](/usc/12/2277a.md?p=2) (hereinafter in this section referred to as the “[Corporation](/usc/12/2277a.md?p=2)”), which shall be an [institution](/usc/12/2271.md?p=3) of the Farm [Credit](/usc/12/5481.md?p=7) System.
- (b) **Duties—** The [Corporation](/usc/12/2277a.md?p=2)—
  - (1) shall issue, market, and handle the obligations of the banks of the Farm [Credit](/usc/12/5481.md?p=7) System, and interbank or intersystem flow of funds as may from time to time be required;
  - (2) acting for the banks of the Farm [Credit](/usc/12/5481.md?p=7) System, subject to approval of the Farm [Credit](/usc/12/5481.md?p=7) Administration, shall determine the amount, maturities, rates of interest, terms, and conditions of participation by the several banks in each issue of joint, consolidated, or System-wide obligations; and
  - (3) shall exercise such other powers as were provided to the predecessor Federal Farm [Credit](/usc/12/5481.md?p=7) Banks Funding [Corporation](/usc/12/2277a.md?p=2) in accordance with its charter issued under [section 2211 of this title](/usc/12/2211.md), in effect immediately before January 6, 1988.
- (c) **Officers and committees—**
  - (1) **Designation—** The [board of directors](/usc/12/2277a.md?p=1) may designate such officers and committees for such terms and such purposes as may be agreed on by the [board](/usc/12/1861.md?p=b-3).
  - (2) **Issuance of obligations—** When appropriate to the [board](/usc/12/1861.md?p=b-3)’s functions under this section, a committee of the [board of directors](/usc/12/2277a.md?p=1) of the [Corporation](/usc/12/2277a.md?p=2), or representatives thereof, may act on behalf of the [board](/usc/12/1861.md?p=b-3) in connection with the issuance of joint, consolidated, and System-wide obligations.
- (d) **Board of directors—**
  - (1) **Composition—** The [board of directors](/usc/12/2277a.md?p=1) shall be composed of nine voting members and one nonvoting member, as follows:
    - (A) Four voting members shall be current or former [directors](/usc/12/2279bb.md?p=3) of the System banks elected by the shareholders of the [Corporation](/usc/12/2277a.md?p=2).
    - (B) Three voting members shall be chief executive officers or presidents of System banks elected by the shareholders of the [Corporation](/usc/12/2277a.md?p=2).
    - (C) Two voting members shall be appointed by the members elected under subparagraphs [(A)](#d-1-A) and [(B)](#d-1-B) after the elected members have received recommendations for such appointments from, and consulted with, the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury and the Chairman of the [Board](/usc/12/1861.md?p=b-3) of Governors of the Federal Reserve System. The appointed members shall be selected from United States citizens—
      - (i) who are not borrowers from, shareholders in, or employees or agents of any [System institution](/usc/12/2271.md?p=3), who are not affiliated with the Farm [Credit](/usc/12/5481.md?p=7) Administration, and who are not actively engaged with a bank or investment organization that is a member of the [Corporation](/usc/12/2277a.md?p=2)’s selling group for System-wide securities; and
      - (ii) who are experienced or knowledgeable in corporate and public finance, agricultural economics, and financial reporting and disclosure.
    - (D) The president of the [Corporation](/usc/12/2277a.md?p=2) shall serve as a nonvoting member of the [board](/usc/12/1861.md?p=b-3).
  - (2) **Considerations—** In selecting candidates under subparagraphs [(A)](#d-1-A) and [(B)](#d-1-B) of paragraph (1), due consideration shall be given to choosing individuals knowledgeable in agricultural economics, public and corporate finance, and financial reporting and disclosure.
  - (3) **Representation of board—** The Farm [Credit](/usc/12/5481.md?p=7) System Insurance [Corporation](/usc/12/2277a.md?p=2) shall not have representation on the [board of directors](/usc/12/2277a.md?p=1) of the [Corporation](/usc/12/2277a.md?p=2).
- (e) **Succession—**
  - (1) **Assets and liabilities—** The [Corporation](/usc/12/2277a.md?p=2) shall, by operation of law and without any further action by the Farm [Credit](/usc/12/5481.md?p=7) Administration, the predecessor Federal Farm [Credit](/usc/12/5481.md?p=7) Banks Funding [Corporation](/usc/12/2277a.md?p=2) (hereinafter referred to in this subsection as “the predecessor [corporation](/usc/12/2277a.md?p=2)”) chartered under this chapter, or any court, succeed to the assets of and assume all debts, obligations, contracts, and other liabilities of the predecessor [corporation](/usc/12/2277a.md?p=2), matured or unmatured, accrued, absolute, contingent or otherwise, and whether or not reflected or reserved against on balance sheets, books of account, or records of the predecessor [corporation](/usc/12/2277a.md?p=2).
  - (2) **Contracts—** The existing contractual obligations, security instruments, and title instruments of the predecessor [corporation](/usc/12/2277a.md?p=2) shall, by operation of law and without any further action by the Farm [Credit](/usc/12/5481.md?p=7) Administration, the predecessor [corporation](/usc/12/2277a.md?p=2), or any court, become and be converted into obligations, entitlements, and instruments of the [Corporation](/usc/12/2277a.md?p=2).
  - (3) **Stock—** The stock of the predecessor [corporation](/usc/12/2277a.md?p=2) issued before January 6, 1988, shall, by operation of law and without any further action by the Farm [Credit](/usc/12/5481.md?p=7) Administration, the predecessor [corporation](/usc/12/2277a.md?p=2), or any court, become and be converted into stock of the [Corporation](/usc/12/2277a.md?p=2) established by this section.
  - (4) **Taxation—** The succession to assets, assumption of liabilities, conversion of obligations, instruments, and stock, and effectuation of any other transaction by the [Corporation](/usc/12/2277a.md?p=2) to carry out this subsection shall not be treated as a taxable event under the laws of any [State](/usc/12/2277a.md?p=5) or political subdivision thereof.

## Source credit

(Pub. L. 92–181, title IV, § 4.9, Dec. 10, 1971, 85 Stat. 612; Pub. L. 100–233, title II, § 204(a), Jan. 6, 1988, 101 Stat. 1605; Pub. L. 100–399, title II, § 203(a)–(d), Aug. 17, 1988, 102 Stat. 992, 993; Pub. L. 102–552, title V, § 507, Oct. 28, 1992, 106 Stat. 4131; Pub. L. 115–334, title V, § 5411(19), Dec. 20, 2018, 132 Stat. 4681.)

## Notes

### Editorial Notes

### References in Text

January 6, 1988, referred to in subsec. (e)(3), was in the original “the date of the enactment of this section”, which was translated as meaning the date of enactment of Pub. L. 100–233, which amended this section generally, to reflect the probable intent of Congress.

### Amendments

Subsec. (d)(2). Pub. L. 115–334, § 5411(19)(A), designated concluding provisions of subsec. (d)(1) as par. (2), inserted heading, inserted “of paragraph (1)” after “(A) and (B)”, and struck out former par. (2) which related to Assistance Board non-voting representatives and post-termination representation on the board of directors of the Corporation.

Subsec. (d)(3). Pub. L. 115–334, § 5411(19)(A)(i), added par. (3).

Subsecs. (e), (f). Pub. L. 115–334, § 5411(19)(B), (C), redesignated subsec. (f) as (e) and struck out former subsec. (e) which set out transitional authority until a majority of the voting members of the board of directors of the Corporation was elected.

1992—Subsec. (d)(2). Pub. L. 102–552 amended par. (2) generally. Prior to amendment, par. (2) read as follows:

“(A) Assistance board.—During the period in which the Assistance Board is in existence, the board of directors of the Assistance Board shall designate one of its directors to serve as a nonvoting representative to the board of directors of the Corporation.

“(B) Insurance corporation.—After such period, the board of directors of the Farm Credit System Insurance Corporation may designate one of its directors to serve as a nonvoting representative to the board of directors of the Corporation.

“(C) Meetings.—The persons so designated by the Assistance Board and by the Farm Credit System Insurance Corporation may attend and participate in all deliberations of the board of directors of the Corporation.”

1988—Pub. L. 100–233 amended section generally. Prior to amendment, section read as follows: “A fiscal agency shall be established by the banks for such of their functions relating to the issuance, marketing, and handling of their obligations, and interbank or intersystem flow of funds as may from time to time be required.”

Subsec. (b)(3). Pub. L. 100–399, § 203(b), inserted “predecessor Federal Farm Credit Banks” before “Funding Corporation”.

Subsec. (d)(2)(B), (C). Pub. L. 100–399, § 203(c), substituted “directors of the Corporation” for “directors of the Federal Farm Credit Banks Funding Corporation”.

Subsec. (e). Pub. L. 100–399, § 203(d), amended subsec. (e) generally. Prior to amendment, subsec. (e) read as follows: “Until a quorum of the board of directors of the Corporation is elected or appointed, the finance committee established under section 2156 of this title in effect before January 6, 1988, and the fiscal agency established under section 2160 of this title in effect before January 6, 1988, shall continue to operate as if this section had not been enacted.”

Subsec. (f). Pub. L. 100–399, § 203(a), added subsec. (f).

### Statutory Notes and Related Subsidiaries

### Effective Date of 1988 Amendment

Amendment by Pub. L. 100–399 effective as if enacted immediately after enactment of Pub. L. 100–233, which was approved Jan. 6, 1988, see section 1001(a) of Pub. L. 100–399, set out as a note under section 2002 of this title.