---
kind: "section"
citation: "12 U.S.C. § 2279aa–3"
title: "12"
title_heading: "Banks and Banking"
number: "2279aa–3"
heading: "Powers and duties of Corporation and Board"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/2279aa-3"
units:
  - "Chapter 23 — Farm Credit System"
  - "Subchapter VIII — Agricultural Mortgage Secondary Market"
  - "Part A — Establishment and Activities of Federal Agricultural Mortgage Corporation"
---

# §2279aa–3. Powers and duties of Corporation and Board

- (a) **Guarantees—** After the [Board](/usc/12/2279aa.md?p=2) has been duly constituted, subject to the other provisions of this subchapter and other commitments and requirements established pursuant to law, the [Corporation](/usc/12/2279aa.md?p=4) may provide [guarantees](/usc/12/2279aa.md?p=5) on terms and conditions determined by the [Corporation](/usc/12/2279aa.md?p=4) of securities issued on the security of, or in participation in, pooled interests in [qualified loans](/usc/12/2279aa.md?p=7).
- (b) **Duties of Board—**
  - (1) **In general—** The [Board](/usc/12/2279aa.md?p=2) shall—
    - (A) determine the general policies that shall govern the operations of the [Corporation](/usc/12/2279aa.md?p=4);
    - (B) select, appoint, and determine the [compensation](/usc/12/2279bb.md?p=1) of qualified [persons](/usc/12/5481.md?p=19) to fill such [offices](/usc/12/2279bb.md?p=4) as may be provided for in the bylaws of the [Corporation](/usc/12/2279aa.md?p=4); and
    - (C) assign to such [persons](/usc/12/5481.md?p=19) such executive functions, powers, and duties as may be prescribed by the bylaws of the [Corporation](/usc/12/2279aa.md?p=4) or by the [Board](/usc/12/2279aa.md?p=2).
  - (2) **Executive officers and functions—** The [persons](/usc/12/5481.md?p=19) elected or appointed under [paragraph (1)(B)](#b-1-B) shall be the executive officers of the [Corporation](/usc/12/2279aa.md?p=4) and shall discharge the executive functions, powers, and duties of the [Corporation](/usc/12/2279aa.md?p=4).
- (c) **Powers of Corporation—** The [Corporation](/usc/12/2279aa.md?p=4) shall be a body corporate and shall have the following powers:
  - (1) To operate under the direction of its [Board](/usc/12/2279aa.md?p=2).
  - (2) To issue stock in the manner provided in [section 2279aa–4 of this title](/usc/12/2279aa–4.md).
  - (3) To adopt, alter, and use a corporate seal, which shall be judicially noted.
  - (4) To provide for a president, 1 or more vice presidents, [secretary](/usc/12/1715z–22a.md?p=4), treasurer, and such other officers, employees, and agents, as may be necessary, define their duties and [compensation](/usc/12/2279bb.md?p=1) levels, all without regard to [title 5](/usc/5.md), and require surety bonds or make other provisions against losses occasioned by acts of such [persons](/usc/12/5481.md?p=19).
  - (5) To provide [guarantees](/usc/12/2279aa.md?p=5) in the manner provided under [section 2279aa–6 of this title](/usc/12/2279aa–6.md).
  - (6) To have succession until dissolved by a law enacted by the Congress.
  - (7) To prescribe bylaws, through the [Board](/usc/12/2279aa.md?p=2), not inconsistent with law, that shall provide for—
    - (A) the classes of the stock of the [Corporation](/usc/12/2279aa.md?p=4); and
    - (B) the manner in which—
      - (i) the stock shall be issued, transferred, and retired;
      - (ii) the officers, employees, and agents of the [Corporation](/usc/12/2279aa.md?p=4) are selected;
      - (iii) the property of the [Corporation](/usc/12/2279aa.md?p=4) is acquired, held, and transferred;
      - (iv) the commitments and other financial assistance of the [Corporation](/usc/12/2279aa.md?p=4) are made;
      - (v) the general business of the [Corporation](/usc/12/2279aa.md?p=4) is conducted; and
      - (vi) the privileges granted by law to the [Corporation](/usc/12/2279aa.md?p=4) are exercised and enjoyed;
  - (8) To prescribe such standards as may be necessary to carry out this subchapter.
  - (9) To enter into contracts and make payments with respect to the contracts.
  - (10) To sue and be sued in its corporate capacity and to complain and defend in any action brought by or against the [Corporation](/usc/12/2279aa.md?p=4) in any [State](/usc/12/2279aa.md?p=8) or Federal court of competent jurisdiction.
  - (11) To make and perform contracts, agreements, and commitments with [persons](/usc/12/5481.md?p=19) and entities both inside and outside of the Farm [Credit](/usc/12/5481.md?p=7) System.
  - (12) To acquire, hold, lease, [mortgage](/usc/12/1707.md?p=a) or dispose of, at public or private sale, real and personal property, purchase or sell any securities or obligations, and otherwise exercise all the usual incidents of ownership of property necessary and convenient to the business of the [Corporation](/usc/12/2279aa.md?p=4).
  - (13) To purchase, hold, sell, or assign a [qualified loan](/usc/12/2279aa.md?p=7), to issue a guaranteed security, representing an interest in, or an obligation backed by, the [qualified loan](/usc/12/2279aa.md?p=7), and to perform all the functions and responsibilities of an agricultural [mortgage](/usc/12/1707.md?p=a) marketing facility operating as a [certified facility](/usc/12/2279aa.md?p=3) under this subchapter.
  - (14) To establish, acquire, and maintain [affiliates](/usc/12/5481.md?p=1) (as such term is defined in [section 2279aa–11(e) of this title](/usc/12/2279aa–11.md?p=e)) under applicable [State](/usc/12/2279aa.md?p=8) laws to carry out any activities that otherwise would be performed directly by the [Corporation](/usc/12/2279aa.md?p=4) under this subchapter.
  - (15) To exercise such other incidental powers as are necessary to carry out the powers, duties, and functions of the [Corporation](/usc/12/2279aa.md?p=4) in accordance with this subchapter.
- (d) **Federal Reserve banks as depositaries and fiscal agents—** The Federal Reserve banks shall act as depositories for, and as fiscal agents or custodians of, the [Corporation](/usc/12/2279aa.md?p=4).
- (e) **Access to book-entry system—** The [Corporation](/usc/12/2279aa.md?p=4) shall have access to the book-entry system of the Federal Reserve System.

## Source credit

(Pub. L. 92–181, title VIII, § 8.3, as added Pub. L. 100–233, title VII, § 702, Jan. 6, 1988, 101 Stat. 1691; amended Pub. L. 100–399, title VI, § 601(c), Aug. 17, 1988, 102 Stat. 1005; Pub. L. 102–237, title V, § 503(c), Dec. 13, 1991, 105 Stat. 1877; Pub. L. 102–552, title III, § 308(b)(1), Oct. 28, 1992, 106 Stat. 4116; Pub. L. 104–105, title I, §§ 104, 105, Feb. 10, 1996, 110 Stat. 163.)

## Notes

### Editorial Notes

### Amendments

1996—Subsec. (c)(13) to (15). Pub. L. 104–105, § 104, added par. (13) and redesignated former pars. (13) and (14) as (14) and (15), respectively.

Subsec. (d). Pub. L. 104–105, § 105(1), which directed the amendment of subsec. (d) by substituting “shall act as depositories for, and” for “may act as depositories for, or”, was executed by making the substitution for “may act as depositaries for, or” to reflect the probable intent of Congress.

Subsec. (e). Pub. L. 104–105, § 105(2), substituted “Corporation shall have access to” for “Secretary of the Treasury may authorize the Corporation to use”.

1992—Subsec. (c)(13). Pub. L. 102–552 substituted “2279aa–11(e)” for “2279aa–11(g)”.

1991—Subsec. (c)(13), (14). Pub. L. 102–237 added par. (13) and redesignated former par. (13) as (14).

1988—Subsec. (c)(4). Pub. L. 100–399 substituted “such persons” for “the persons”.

### 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.