---
kind: "section"
citation: "12 U.S.C. § 2279aa–2"
title: "12"
title_heading: "Banks and Banking"
number: "2279aa–2"
heading: "Board of directors"
release: "119-102"
url: "https://uscodex.org/usc/12/2279aa-2"
units:
  - "Chapter 23 — Farm Credit System"
  - "Subchapter VIII — Agricultural Mortgage Secondary Market"
  - "Part A — Establishment and Activities of Federal Agricultural Mortgage Corporation"
---

# §2279aa–2. Board of directors

- (a) **In general—**
  - (1) **Establishment—** The [Corporation](/usc/12/2277a.md?p=2) shall be under the management of the [board](/usc/12/221a.md?p=a) of [directors](/usc/12/2279bb.md?p=3).
  - (2) **Composition—** The [Board](/usc/12/221a.md?p=a) shall consist of 15 [members](/usc/12/1426a.md?p=g-1), of which—
    - (A) 5 [members](/usc/12/1426a.md?p=g-1) shall be elected by holders of [common stock](/usc/12/51c.md) that are [insurance companies](/usc/12/1841.md?p=q), [banks](/usc/12/221a.md?p=a), or other [financial institutions](/usc/12/1715k.md?p=h-1-C) or entities;
    - (B) 5 [members](/usc/12/1426a.md?p=g-1) shall be elected by holders of [common stock](/usc/12/51c.md) that are Farm [Credit](/usc/12/5481.md?p=7) [System institutions](/usc/12/2271.md?p=3); and
    - (C) 5 [members](/usc/12/1426a.md?p=g-1) shall be appointed by the President, by and with the advice and consent of the Senate—
      - (i) which [members](/usc/12/1426a.md?p=g-1) shall not be, or have been, officers or [directors](/usc/12/2279bb.md?p=3) of any [financial institutions](/usc/12/1715k.md?p=h-1-C) or entities;
      - (ii) which [members](/usc/12/1426a.md?p=g-1) shall be representatives of the general public;
      - (iii) of which [members](/usc/12/1426a.md?p=g-1) not more than 3 shall be [members](/usc/12/1426a.md?p=g-1) of the same political party; and
      - (iv) of which [members](/usc/12/1426a.md?p=g-1) at least 2 shall be experienced in farming or ranching.
  - (3) **Vacancy—**
    - (A) **Elected members—** Subject to [paragraph (5)](#a-5), a vacancy among the [members](/usc/12/1426a.md?p=g-1) elected to the [Board](/usc/12/221a.md?p=a) in the manner described in subparagraph [(A)](#a-2-A) or [(B)](#a-2-B) of paragraph (2) shall be filled by the [Board](/usc/12/221a.md?p=a) from among [persons](/usc/12/5481.md?p=19) eligible for election to the position for which the vacancy exists.
    - (B) **Appointed members—** A vacancy among the [members](/usc/12/1426a.md?p=g-1) appointed to the [Board](/usc/12/221a.md?p=a) under [paragraph (2)(C)](#a-2-C) shall be filled in the manner in which the original appointment was made.
  - (4) **Continuation of membership—** If—
    - (A) any [member](/usc/12/1426a.md?p=g-1) of the [Board](/usc/12/221a.md?p=a) who was appointed or elected to the [Board](/usc/12/221a.md?p=a) from among [persons](/usc/12/5481.md?p=19) who are representatives of [banks](/usc/12/221a.md?p=a), other [financial institutions](/usc/12/1715k.md?p=h-1-C) or entities, [insurance companies](/usc/12/1841.md?p=q), or Farm [Credit](/usc/12/5481.md?p=7) [System institutions](/usc/12/2271.md?p=3) ceases to be such a representative; or
    - (B) any [member](/usc/12/1426a.md?p=g-1) who was appointed from [persons](/usc/12/5481.md?p=19) who are not or have not been [directors](/usc/12/2279bb.md?p=3) or officers of any [financial institution](/usc/12/1715k.md?p=h-1-C) or entity becomes a [director](/usc/12/2279bb.md?p=3) or an officer of any [financial institution](/usc/12/1715k.md?p=h-1-C) or entity;

    such [member](/usc/12/1426a.md?p=g-1) may continue as a [member](/usc/12/1426a.md?p=g-1) for not longer than the 45-day period beginning on the date such [member](/usc/12/1426a.md?p=g-1) ceases to be such a representative, officer, or employee or becomes such a [director](/usc/12/2279bb.md?p=3) or officer, as the case may be.

  - (5) **Terms—**
    - (A) **Appointed members—** The [members](/usc/12/1426a.md?p=g-1) appointed by the President shall serve at the pleasure of the President.
    - (B) **Elected members—** The [members](/usc/12/1426a.md?p=g-1) elected under subparagraphs (A) and (B) of subsection (b)(2) shall each be elected annually for a term ending on the date of the next annual meeting of the common stockholders of the [Corporation](/usc/12/2277a.md?p=2) and shall serve until their successors are elected and qualified. Any seat on the [Board](/usc/12/221a.md?p=a) that becomes vacant after the annual election of the [directors](/usc/12/2279bb.md?p=3) shall be filled by the [members](/usc/12/1426a.md?p=g-1) of the [Board](/usc/12/221a.md?p=a) from the same category of [directors](/usc/12/2279bb.md?p=3), but only for the unexpired portion of the term.
    - (C) **Vacancy appointment—** Any [member](/usc/12/1426a.md?p=g-1) appointed to fill a vacancy occurring before the expiration of the term for which the predecessor of the [member](/usc/12/1426a.md?p=g-1) was appointed shall be appointed only for the remainder of such term.
    - (D) **Service after expiration of term—** A [member](/usc/12/1426a.md?p=g-1) may serve after the expiration of the term of the [member](/usc/12/1426a.md?p=g-1) until the successor of the [member](/usc/12/1426a.md?p=g-1) has taken [office](/usc/12/2279bb.md?p=4).
  - (6) **Quorum—** 8 [members](/usc/12/1426a.md?p=g-1) of the [Board](/usc/12/221a.md?p=a) shall constitute a quorum.
  - (7) **No additional pay for Federal officers or employees—** [Members](/usc/12/1426a.md?p=g-1) of the [Board](/usc/12/221a.md?p=a) who are fulltime officers or employees of the United States shall receive no additional pay by reason of service on the [Board](/usc/12/221a.md?p=a).
  - (8) **Chairperson—** The President shall designate 1 of the [members](/usc/12/1426a.md?p=g-1) of the [Board](/usc/12/221a.md?p=a) who are appointed by the President as the chairperson of the [Board](/usc/12/221a.md?p=a).
  - (9) **Meetings—** The [Board](/usc/12/221a.md?p=a) shall meet at the call of the chairperson or a majority of its [members](/usc/12/1426a.md?p=g-1).
- (b) **Officers and staff—** The [Board](/usc/12/221a.md?p=a) may appoint, employ, fix the pay of, and provide other allowances and benefits for such officers and employees of the [Corporation](/usc/12/2277a.md?p=2) as the [Board](/usc/12/221a.md?p=a) determines to be appropriate.

## Source credit

(Pub. L. 92–181, title VIII, § 8.2, as added Pub. L. 100–233, title VII, § 702, Jan. 6, 1988, 101 Stat. 1688; amended Pub. L. 100–399, title VI, § 601(b), Aug. 17, 1988, 102 Stat. 1005; Pub. L. 115–334, title V, § 5411(43), Dec. 20, 2018, 132 Stat. 4684.)

## Notes

### Editorial Notes

### Amendments

2018—Subsec. (a). Pub. L. 115–334, § 5411(43)(A)–(C)(i), redesignated subsec. (b) as (a), substituted “In general” for “Permanent board” in heading and “Board” for “permanent board” wherever appearing in text, and struck out former subsec. (a) which established an interim board of directors until the first meeting of a permanent board of directors.

Subsec. (a)(1). Pub. L. 115–334, § 5411(43)(B), added par. (1) and struck out former par. (1) which required the Corporation to establish a permanent board of directors for financial institutions once certain thresholds were met.

Subsec. (a)(3). Pub. L. 115–334, § 5411(43)(C)(ii)–(iv), redesignated par. (4) as (3), substituted “paragraph (5)” for “paragraph (6)” in subpar. (A), and struck out former par. (3) which set a date by which the presidential appointees to the permanent board were to be appointed.

Subsec. (a)(4) to (10). Pub. L. 115–334, § 5411(43)(C)(iii), redesignated pars. (5) to (10) as (4) to (9), respectively. Former par. (4) redesignated (3).

Subsecs. (b), (c). Pub. L. 115–334, § 5411(43)(D), redesignated subsec. (c) as (b). Former subsec. (b) redesignated (a).

1988—Subsecs. (a)(1), (b)(3)(B). Pub. L. 100–399 substituted “date of the enactment” for “effective date”, both of which for purposes of codification were translated as “January 6, 1988,”.

### 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.