---
kind: "section"
citation: "12 U.S.C. § 2277a–3"
title: "12"
title_heading: "Banks and Banking"
number: "2277a–3"
heading: "Commencement of insurance"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/2277a-3"
units:
  - "Chapter 23 — Farm Credit System"
  - "Subchapter V — Farm Credit Administration Organization"
  - "Part E — Farm Credit System Insurance Corporation"
---

# §2277a–3. Commencement of insurance


Effective beginning on January 1, 1989, or 12 months after January 6, 1988, whichever is later, each System bank shall be an [insured System bank](/usc/12/2277a.md?p=4) and shall be subject to this part. Each System bank that is authorized to commence or resume operations under a subchapter of this chapter shall be an [insured System bank](/usc/12/2277a.md?p=4) from the time of such authorization. A bank resulting from the merger or consolidation of [insured System banks](/usc/12/2277a.md?p=4) shall be an [insured System bank](/usc/12/2277a.md?p=4).


## Source credit

(Pub. L. 92–181, title V, § 5.54, as added Pub. L. 100–233, title III, § 302, Jan. 6, 1988, 101 Stat. 1611.)