---
kind: "section"
citation: "12 U.S.C. § 2279c"
title: "12"
title_heading: "Banks and Banking"
number: "2279c"
heading: "Equalization of loan-making powers of certain district associations"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/2279c"
units:
  - "Chapter 23 — Farm Credit System"
  - "Subchapter VII — Restructuring of System Institutions"
  - "Part B — Mergers, Transfers of Assets, and Powers of Associations Within a District"
  - "Subpart 1 — transfers by federal land banks to federal land bank associations"
---

# §2279c. Equalization of loan-making powers of certain district associations

- (a) **Equalization of loan-making powers—**
  - (1) **In general—**
    - (A) **Federal land bank associations—** Subject to [paragraph (2)](#a-2), any association that owns a Federal land bank association authorized as of January 1, 2007, to make long-term loans under subchapter I in its chartered territory within the geographic area described in [subsection (b)](#b) may make short- and intermediate-term loans and otherwise operate as a production [credit](/usc/12/5481.md?p=7) association under subchapter II within that same chartered territory.
    - (B) **Production credit associations—** Subject to [paragraph (2)](#a-2), any association that under its charter has subchapter I lending authority and that owns a production [credit](/usc/12/5481.md?p=7) association authorized as of January 1, 2007, to make short- and intermediate-term loans under subchapter II in the geographic area described in [subsection (b)](#b) may make long-term loans and otherwise operate, directly or through a subsidiary association, as a Federal land bank association or Federal land [credit](/usc/12/5481.md?p=7) association under subchapter I in the geographic area.
    - (C) **Farm Credit Bank—** Notwithstanding [section 2252(a) of this title](/usc/12/2252.md?p=a), the Farm [Credit](/usc/12/5481.md?p=7) Bank with which any association had a written financing agreement as of January 1, 2007, may make loans and extend other comparable financial assistance with respect to, and may purchase, any loans made under the new authority provided under subparagraph [(A)](#a-1-A) or [(B)](#a-1-B) by an association exercising such authority.
  - (2) **Required approvals—** An association may exercise the additional authority provided for in [paragraph (1)](#a-1) only after the exercise of the authority is approved by—
    - (A) the [board of directors](/usc/12/2277a.md?p=1) of the association; and
    - (B) a majority of the voting stockholders of the association (or, if the association is a subsidiary of another association, the voting stockholders of the parent association) voting, in [person](/usc/12/5481.md?p=19) or by proxy, at a duly authorized meeting of stockholders in accordance with the process described in [section 2279e of this title](/usc/12/2279e.md).
- (b) **Applicability—** This section applies only to associations the chartered territory of which was within the geographic area served by the Federal intermediate [credit](/usc/12/5481.md?p=7) bank immediately prior to its merger with a Farm [Credit](/usc/12/5481.md?p=7) Bank under section 410(e)(1) of the Agricultural Credit Act of 1987 ([12 U.S.C. 2011](/usc/12/2011.md) note; Public Law 100–233).

## Source credit

(Pub. L. 92–181, title VII, § 7.7, as added Pub. L. 110–234, title V, § 5407(a), May 22, 2008, 122 Stat. 1159, and Pub. L. 110–246, § 4(a), title V, § 5407(a), June 18, 2008, 122 Stat. 1664, 1921.)

## Notes

### Editorial Notes

### Codification

Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246.

### Prior Provisions

A prior section 2279c, Pub. L. 92–181, title VII, § 7.7, as added Pub. L. 100–233, title IV, § 416, Jan. 6, 1988, 101 Stat. 1647; amended Pub. L. 100–399, title IV, § 408(i), (j), Aug. 17, 1988, 102 Stat. 1002, related to mergers of unlike associations, prior to renumbering as section 7.6(d) of Pub. L. 92–181 and transfer to section 2279b(d) of this title.

### Statutory Notes and Related Subsidiaries

### Effective Date

Enactment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, except as otherwise provided, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of Title 7, Agriculture.

Section effective Jan. 1, 2010, see section 5407(d) of Pub. L. 110–246, set out as an Effective Date of 2008 Amendment note under section 2252 of this title.