---
kind: "section"
citation: "12 U.S.C. § 2277a–10a"
title: "12"
title_heading: "Banks and Banking"
number: "2277a–10a"
heading: "Oversight actions by Corporation"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/2277a-10a"
units:
  - "Chapter 23 — Farm Credit System"
  - "Subchapter V — Farm Credit Administration Organization"
  - "Part E — Farm Credit System Insurance Corporation"
---

# §2277a–10a. Oversight actions by Corporation

- (a) **“Institution” defined—** In this section, the term “[institution](/usc/12/2271.md?p=3)” means—
  - (1) an [insured System bank](/usc/12/2277a.md?p=4); and
  - (2) a production [credit](/usc/12/5481.md?p=7) association or other association making loans under [section 2279b of this title](/usc/12/2279b.md) with a direct loan payable to the funding bank of the association that comprises 20 percent or more of the funding bank’s total loan volume net of nonaccrual loans.
- (b) **Consultation regarding participation of undercapitalized banks in issuance of insured obligations—** The Farm [Credit](/usc/12/5481.md?p=7) Administration shall consult with the [Corporation](/usc/12/2277a.md?p=2) prior to approving an [insured obligation](/usc/12/2277a.md?p=3) that is to be issued by or on behalf of, or participated in by, any [insured System bank](/usc/12/2277a.md?p=4) that fails to meet the minimum level for any capital requirement established by the Farm [Credit](/usc/12/5481.md?p=7) Administration for the bank.
- (c) **Consultation regarding applications for mergers and restructurings—**
  - (1) **Corporation to receive copy of transaction applications—** On receiving an application for a merger or restructuring of an [institution](/usc/12/2271.md?p=3), the Farm [Credit](/usc/12/5481.md?p=7) Administration shall forward a copy of the application to the [Corporation](/usc/12/2277a.md?p=2).
  - (2) **Consultation required—** If the proposed merger or restructuring involves an [institution](/usc/12/2271.md?p=3) that fails to meet the minimum level for any capital requirement established by the Farm [Credit](/usc/12/5481.md?p=7) Administration applicable to the [institution](/usc/12/2271.md?p=3), the Farm [Credit](/usc/12/5481.md?p=7) Administration shall allow 30 days within which the [Corporation](/usc/12/2277a.md?p=2) may submit the views and recommendations of the [Corporation](/usc/12/2277a.md?p=2), including any conditions for approval. In determining whether to approve or disapprove any proposed merger or restructuring, the Farm [Credit](/usc/12/5481.md?p=7) Administration shall give due consideration to the views and recommendations of the [Corporation](/usc/12/2277a.md?p=2).

## Source credit

(Pub. L. 92–181, title V, § 5.61A, as added Pub. L. 104–105, title II, § 218, Feb. 10, 1996, 110 Stat. 180.)