---
kind: "section"
citation: "12 U.S.C. § 2211"
title: "12"
title_heading: "Banks and Banking"
number: "2211"
heading: "Establishment"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/2211"
units:
  - "Chapter 23 — Farm Credit System"
  - "Subchapter IV — Provisions Applicable to Two or More Classes of Institutions of the System"
  - "Part E — Service Organizations"
---

# §2211. Establishment


Any bank of the Farm [Credit](/usc/12/5481.md?p=7) System, or two or more of such banks acting together, may organize a [corporation](/usc/12/2277a.md?p=2) or [corporations](/usc/12/2277a.md?p=2) for the purpose of performing functions and services for or on behalf of the organizing bank or banks that the bank or banks may perform pursuant to this chapter: Provided, That a [corporation](/usc/12/2277a.md?p=2) so organized shall have no authority either to extend [credit](/usc/12/5481.md?p=7) or provide insurance services for borrowers from Farm [Credit](/usc/12/5481.md?p=7) [System institutions](/usc/12/2271.md?p=3), nor shall it have any greater authority with respect to functions and services than the organizing bank or banks possess under this chapter. The organizing bank or banks shall apply for a Federal charter for the [corporation](/usc/12/2277a.md?p=2) by forwarding to the Farm [Credit](/usc/12/5481.md?p=7) Administration a statement of the need for the [corporation](/usc/12/2277a.md?p=2) and proposed articles specifying in general terms the objectives for which the [corporation](/usc/12/2277a.md?p=2) is formed, the powers to be exercised by it in carrying out the functions and services, and the territory it is to serve. The Farm [Credit](/usc/12/5481.md?p=7) Administration for good cause may deny the charter applied for. Upon the approval of articles by the Farm [Credit](/usc/12/5481.md?p=7) Administration and the issuance of a charter, the [corporation](/usc/12/2277a.md?p=2) shall become as of such date a federally chartered body corporate and an instrumentality of the United States.


## Source credit

(Pub. L. 92–181, title IV, § 4.25, as added Pub. L. 96–592, title IV, § 404, Dec. 24, 1980, 94 Stat. 3447; amended Pub. L. 99–205, title II, § 205(f)(8), Dec. 23, 1985, 99 Stat. 1706.)

## Notes

### Editorial Notes

### Amendments

1985—Pub. L. 99–205 struck out “the Governor of” before “the Farm Credit Administration” in second sentence and substituted “Farm Credit Administration” for “Governor” in third and fourth sentences.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1985 Amendment

Amendment by Pub. L. 99–205 effective thirty days after Dec. 23, 1985, see section 401 of Pub. L. 99–205, set out as a note under section 2001 of this title.