---
kind: "section"
citation: "12 U.S.C. § 2277a–8"
title: "12"
title_heading: "Banks and Banking"
number: "2277a–8"
heading: "Conduct of corporate affairs; examination of System institutions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/2277a-8"
units:
  - "Chapter 23 — Farm Credit System"
  - "Subchapter V — Farm Credit Administration Organization"
  - "Part E — Farm Credit System Insurance Corporation"
---

# §2277a–8. Conduct of corporate affairs; examination of System institutions

- (a) **Conduct of corporate affairs—**
  - (1) **Fair administration—** The [Board of Directors](/usc/12/2277a.md?p=1) shall administer the affairs of the [Corporation](/usc/12/2277a.md?p=2) fairly and impartially and without discrimination.
  - (2) **Obligations and expenses—** The [Board of Directors](/usc/12/2277a.md?p=1) shall determine and prescribe the manner in which the obligations of the [Corporation](/usc/12/2277a.md?p=2) may be incurred and the expenses of the [Corporation](/usc/12/2277a.md?p=2) may be allowed and paid.
  - (3) **Use of mails—** The [Corporation](/usc/12/2277a.md?p=2) may use the United States mails in the same manner and under the same conditions as the executive departments of the Federal Government.
  - (4) **Use of information—** The [Corporation](/usc/12/2277a.md?p=2), with the consent of any [board](/usc/12/1861.md?p=b-3), commission, independent establishment, or executive department of the Federal Government, including any field service thereof, may avail itself of the use of information, services, and facilities thereof in carrying out this part.
  - (5) **Use of Farm Credit Administration personnel—** To the extent practicable, the [Corporation](/usc/12/2277a.md?p=2) shall use the personnel and resources of the Farm [Credit](/usc/12/5481.md?p=7) Administration to minimize duplication of effort and to reduce costs.
- (b) **Examination of System institutions—**
  - (1) **Examination authority—**
    - (A) **In general—** If the [Board of Directors](/usc/12/2277a.md?p=1) considers it necessary to examine an [insured System bank](/usc/12/2277a.md?p=4), a production [credit](/usc/12/5481.md?p=7) association, an association making direct loans under the authority provided under [section 2279b of this title](/usc/12/2279b.md), or any [System institution](/usc/12/2271.md?p=3) in receivership, the [Board](/usc/12/1861.md?p=b-3) may, using Farm [Credit](/usc/12/5481.md?p=7) Administration examiners, conduct the examination using reports and other information on the [System institution](/usc/12/2271.md?p=3) prepared or held by the Farm [Credit](/usc/12/5481.md?p=7) Administration. Notwithstanding any other provision of this chapter, on cancellation of the charter of a [System institution](/usc/12/2271.md?p=3), the [Corporation](/usc/12/2277a.md?p=2) shall have authority to examine the system[^1] [institution](/usc/12/2271.md?p=3) in receivership. An examination shall be performed at such intervals as the [Corporation](/usc/12/2277a.md?p=2) shall determine.
    - (B) **Request for additional examination or other information—** If the [Board](/usc/12/1861.md?p=b-3) determines that such reports or information are not adequate to enable the [Corporation](/usc/12/2277a.md?p=2) to carry out the duties of the [Corporation](/usc/12/2277a.md?p=2) under this subsection, the [Board](/usc/12/1861.md?p=b-3) shall request the Farm [Credit](/usc/12/5481.md?p=7) Administration to examine or to obtain other information from or about the [System institution](/usc/12/2271.md?p=3) and provide to the [Corporation](/usc/12/2277a.md?p=2) the resulting examination report or such other information.
  - (2) **Appointment of examiners—** If the Farm [Credit](/usc/12/5481.md?p=7) Administration informs the [Corporation](/usc/12/2277a.md?p=2) that the Farm [Credit](/usc/12/5481.md?p=7) Administration is unable to comply with a request made under [paragraph (1)(B)](#b-1-B) with respect to a [System institution](/usc/12/2271.md?p=3), the [Board](/usc/12/1861.md?p=b-3) may appoint examiners to examine the [institution](/usc/12/2271.md?p=3).
  - (3) **Powers and report—** Each examiner appointed under [paragraph (2)](#b-2) shall make such examination of the affairs of the [System institution](/usc/12/2271.md?p=3) as the [Board](/usc/12/1861.md?p=b-3) may direct, and shall make a full and detailed report of the examination to the [Corporation](/usc/12/2277a.md?p=2).
  - (4) **Appointment of claim agents—** The [Board of Directors](/usc/12/2277a.md?p=1) of the [Corporation](/usc/12/2277a.md?p=2) shall appoint claim agents who may investigate and examine all claims for [insured obligations](/usc/12/2277a.md?p=3).
- (c) **Oath, affirmations, and testimony—** In connection with examinations under this section, the [Corporation](/usc/12/2277a.md?p=2) or its designated representatives may administer oaths and affirmations, and may examine, take, and preserve testimony under oath, as to any matter with respect to the affairs of any such [institution](/usc/12/2271.md?p=3).
- (d) **Cooperation with FCA examiners—** The examiners appointed by the [Board of Directors](/usc/12/2277a.md?p=1) shall cooperate to the maximum extent possible with examiners of the Farm [Credit](/usc/12/5481.md?p=7) Administration to minimize duplication of effort and minimize costs.

## Footnotes

[^1]: So in original. Probably should be capitalized.

## Source credit

(Pub. L. 92–181, title V, § 5.59, as added Pub. L. 100–233, title III, § 302, Jan. 6, 1988, 101 Stat. 1615; amended Pub. L. 101–220, § 6(b)(3), Dec. 12, 1989, 103 Stat. 1880; Pub. L. 102–552, title II, § 203, title V, § 513(a), Oct. 28, 1992, 106 Stat. 4106, 4133; Pub. L. 104–105, title II, § 216, Feb. 10, 1996, 110 Stat. 179.)

## Notes

### Editorial Notes

### Amendments

1996—Subsec. (b)(1)(A). Pub. L. 104–105 inserted at end “Notwithstanding any other provision of this chapter, on cancellation of the charter of a System institution, the Corporation shall have authority to examine the system institution in receivership. An examination shall be performed at such intervals as the Corporation shall determine.”

1992—Pub. L. 102–552, § 513(a)(1), substituted “System institutions” for “insured System banks” in section catchline.

Subsec. (a)(5). Pub. L. 102–552, § 203, added par. (5).

Subsec. (b). Pub. L. 102–552, § 513(a)(2), added subsec. (b) and struck out former subsec. (b) which read as follows: “(b) Examination of Insured System Banks.—

“(1) Appointment of examiners.—The Board of Directors may appoint examiners who may, on behalf of the Corporation, examine any insured System bank, any production credit association, any other association making direct loans under authority provided under section 2279b of this title, and any System institution in receivership, if in the judgment of the Board of Directors an examination of the institution is necessary.

“(2) Powers and report.—Each examiner may make a thorough examination of all affairs of the institution, and shall make a full and detailed report of the condition of the institution to the Corporation.

“(3) Appointment of claim agents.—The Board of Directors, in like manner, shall appoint claim agents who may investigate and examine all claims for insured obligations.”

1989—Subsec. (b)(1). Pub. L. 101–220 inserted “any other association making direct loans under authority provided under section 2279b of this title,” after “any production credit association,”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1989 Amendment

Amendment by Pub. L. 101–220 effective for insurance premiums due to the Farm Credit System Insurance Corporation under this chapter on or after Jan. 1, 1990, based on the loan volume of each bank for each calendar year beginning with calendar year 1989, and effective for the calculation of the initial premium payment required under section 2277a–5(c) of this title, see section 6(c) of Pub. L. 101–220, set out as a note under section 2020 of this title.