---
kind: "section"
citation: "12 U.S.C. § 2279aa–10"
title: "12"
title_heading: "Banks and Banking"
number: "2279aa–10"
heading: "Funding for guarantee; reserves of Corporation"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/2279aa-10"
units:
  - "Chapter 23 — Farm Credit System"
  - "Subchapter VIII — Agricultural Mortgage Secondary Market"
  - "Part A — Establishment and Activities of Federal Agricultural Mortgage Corporation"
---

# §2279aa–10. Funding for guarantee; reserves of Corporation

- (a) **Guarantee—** The [Corporation](/usc/12/2279aa.md?p=4) shall provide [guarantees](/usc/12/2279aa.md?p=5) for securities representing interests in, or obligations backed by, pools of [qualified loans](/usc/12/2279aa.md?p=7) through commitments issued by the [Corporation](/usc/12/2279aa.md?p=4) providing for [guarantees](/usc/12/2279aa.md?p=5).
- (b) **Guarantee fees—**
  - (1) **Initial fee—** At the time a [guarantee](/usc/12/2279aa.md?p=5) is issued by the [Corporation](/usc/12/2279aa.md?p=4), the [Corporation](/usc/12/2279aa.md?p=4) shall assess the [certified facility](/usc/12/2279aa.md?p=3) a fee of not more than ½ of 1 percent of the initial principal amount of each pool of [qualified loans](/usc/12/2279aa.md?p=7).
  - (2) **Annual fees—** Beginning in the second year after the date the [guarantee](/usc/12/2279aa.md?p=5) is issued under [paragraph (1)](#b-1), the [Corporation](/usc/12/2279aa.md?p=4) may, at the end of each year, assess the [certified facility](/usc/12/2279aa.md?p=3) an annual fee of not more than ½ of 1 percent of the principal amount of the loans then constituting the pool.
  - (3) **Determination of amount—** The [Corporation](/usc/12/2279aa.md?p=4) shall establish such fees on the amount of risk incurred by the [Corporation](/usc/12/2279aa.md?p=4) in providing the [guarantees](/usc/12/2279aa.md?p=5) with respect to which such fee is assessed, as determined by the [Corporation](/usc/12/2279aa.md?p=4). Fees assessed under paragraphs [(1)](#b-1) and [(2)](#b-2) shall be established on an actuarially sound basis.
  - (4) **Review by GAO—** The Comptroller General of the United States may review, and submit to the Congress a report regarding, the actuarial soundness and reasonableness of the fees established by the [Corporation](/usc/12/2279aa.md?p=4) under this subsection.
- (c) **Corporation reserve against guarantees losses required—**
  - (1) **In general—** So much of the fees assessed under this section as the [Board](/usc/12/2279aa.md?p=2) determines to be necessary shall be set aside by the [Corporation](/usc/12/2279aa.md?p=4) in a segregated account as a reserve against losses arising out of the [guarantee](/usc/12/2279aa.md?p=5) activities of the [Corporation](/usc/12/2279aa.md?p=4).
  - (2) **Exhaustion of reserve required—** The [Corporation](/usc/12/2279aa.md?p=4) may not issue obligations to the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury under [section 2279aa–13 of this title](/usc/12/2279aa–13.md) in order to meet the obligations of the [Corporation](/usc/12/2279aa.md?p=4) with respect to any [guarantees](/usc/12/2279aa.md?p=5) provided under this subchapter until the reserve established under [paragraph (1)](#c-1) has been exhausted.
- (d) **Fees to cover administrative costs authorized—** The [Corporation](/usc/12/2279aa.md?p=4) may impose charges or fees in reasonable amounts in connection with the administration of its activities under this subchapter to recover its costs for performing such administration.

## Source credit

(Pub. L. 92–181, title VIII, § 8.10, as added Pub. L. 100–233, title VII, § 702, Jan. 6, 1988, 101 Stat. 1701; amended Pub. L. 104–316, title I, § 106(f), Oct. 19, 1996, 110 Stat. 3831.)

## Notes

### Editorial Notes

### Amendments

1996—Subsec. (b)(4). Pub. L. 104–316 substituted “Review” for “Annual review” in heading and “may review” for “shall annually review” in text.