---
kind: "section"
citation: "12 U.S.C. § 2279bb–2"
title: "12"
title_heading: "Banks and Banking"
number: "2279bb–2"
heading: "Minimum capital level"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/2279bb-2"
units:
  - "Chapter 23 — Farm Credit System"
  - "Subchapter VIII — Agricultural Mortgage Secondary Market"
  - "Part B — Regulation of Financial Safety and Soundness of Federal Agricultural Mortgage Corporation"
---

# §2279bb–2. Minimum capital level

- (a) **In general—** Except as provided in [subsection (b)](#b), for purposes of this part, the minimum capital level for the [Corporation](/usc/12/2279aa.md?p=4) shall be an amount of [core capital](/usc/12/2279bb.md?p=2) equal to the sum of
  - (1) 2.75 percent of the aggregate on-balance sheet assets of the [Corporation](/usc/12/2279aa.md?p=4), as determined in accordance with generally accepted accounting principles; and
  - (2) 0.75 percent of the aggregate off-balance sheet obligations of the [Corporation](/usc/12/2279aa.md?p=4), which, for the purposes of this part, shall include
    - (A) the unpaid principal balance of outstanding securities that are guaranteed by the [Corporation](/usc/12/2279aa.md?p=4) and backed by pools of [qualified loans](/usc/12/2279aa.md?p=7);
    - (B) instruments that are issued or guaranteed by the [Corporation](/usc/12/2279aa.md?p=4) and are substantially equivalent to instruments described in [subparagraph (A)](#a-2-A); and
    - (C) other off-balance sheet obligations of the [Corporation](/usc/12/2279aa.md?p=4).
- (b) **Transition period—**
  - (1) **In general—** For purposes of this part, the minimum capital level for the [Corporation](/usc/12/2279aa.md?p=4)—
    - (A) prior to January 1, 1997, shall be the amount of [core capital](/usc/12/2279bb.md?p=2) equal to the sum of—
      - (i) 0.45 percent of aggregate off-balance sheet obligations of the [Corporation](/usc/12/2279aa.md?p=4);
      - (ii) 0.45 percent of designated on-balance sheet assets of the [Corporation](/usc/12/2279aa.md?p=4), as determined under [paragraph (2)](#b-2); and
      - (iii) 2.50 percent of on-balance sheet assets of the [Corporation](/usc/12/2279aa.md?p=4) other than assets designated under [paragraph (2)](#b-2);
    - (B) during the 1-year period ending December 31, 1997, shall be the amount of [core capital](/usc/12/2279bb.md?p=2) equal to the sum of—
      - (i) 0.55 percent of aggregate off-balance sheet obligations of the [Corporation](/usc/12/2279aa.md?p=4);
      - (ii) 1.20 percent of designated on-balance sheet assets of the [Corporation](/usc/12/2279aa.md?p=4), as determined under [paragraph (2)](#b-2); and
      - (iii) 2.55 percent of on-balance sheet assets of the [Corporation](/usc/12/2279aa.md?p=4) other than assets designated under [paragraph (2)](#b-2);
    - (C) during the 1-year period ending December 31, 1998, shall be the amount of [core capital](/usc/12/2279bb.md?p=2) equal to—
      - (i) if the [Corporation](/usc/12/2279aa.md?p=4)’s [core capital](/usc/12/2279bb.md?p=2) is not less than $25,000,000 on January 1, 1998, the sum of—
        - (I) 0.65 percent of aggregate off-balance sheet obligations of the [Corporation](/usc/12/2279aa.md?p=4);
        - (II) 1.95 percent of designated on-balance sheet assets of the [Corporation](/usc/12/2279aa.md?p=4), as determined under [paragraph (2)](#b-2); and
        - (III) 2.65 percent of on-balance sheet assets of the [Corporation](/usc/12/2279aa.md?p=4) other than assets designated under [paragraph (2)](#b-2); or
      - (ii) if the [Corporation](/usc/12/2279aa.md?p=4)’s [core capital](/usc/12/2279bb.md?p=2) is less than $25,000,000 on January 1, 1998, the amount determined under [subsection (a)](#a); and
    - (D) on and after January 1, 1999, shall be the amount determined under [subsection (a)](#a).
  - (2) **Designated on-balance sheet assets—** For purposes of this subsection, the designated on-balance sheet assets of the [Corporation](/usc/12/2279aa.md?p=4) shall be—
    - (A) the aggregate on-balance sheet assets of the [Corporation](/usc/12/2279aa.md?p=4) acquired under [section 2279aa–6(d) of this title](/usc/12/2279aa–6.md?p=d); and
    - (B) the aggregate amount of [qualified loans](/usc/12/2279aa.md?p=7) purchased and held by the [Corporation](/usc/12/2279aa.md?p=4) under [section 2279aa–3(c)(13) of this title](/usc/12/2279aa–3.md?p=c-13).

## Source credit

(Pub. L. 92–181, title VIII, § 8.33, as added Pub. L. 102–237, title V, § 503(b)(2), Dec. 13, 1991, 105 Stat. 1873; amended Pub. L. 104–105, title I, § 114, Feb. 10, 1996, 110 Stat. 166; Pub. L. 115–334, title V, § 5411(49), Dec. 20, 2018, 132 Stat. 4685.)

## Notes

### Editorial Notes

### Amendments

2018—Subsec. (b)(2)(A). Pub. L. 115–334 substituted “section 2279aa–6(d)” for “section 2279aa–6(e)”.

1996—Pub. L. 104–105 amended section generally, substituting present provisions for provisions relating to minimum capital level, including general provisions, provisions relating to 18-month transition, and provisions relating to linked portfolio assets.