---
kind: "section"
citation: "12 U.S.C. § 2279cc"
title: "12"
title_heading: "Banks and Banking"
number: "2279cc"
heading: "Conservatorship; liquidation; receivership"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/2279cc"
units:
  - "Chapter 23 — Farm Credit System"
  - "Subchapter VIII — Agricultural Mortgage Secondary Market"
  - "Part C — Receivership, Conservatorship, and Liquidation of Federal Agricultural Mortgage Corporation"
---

# §2279cc. Conservatorship; liquidation; receivership

- (a) **Voluntary liquidation—** The [Corporation](/usc/12/2279aa.md?p=4) may voluntarily liquidate only with the consent of, and in accordance with a plan of liquidation approved by, the Farm [Credit](/usc/12/5481.md?p=7) Administration [Board](/usc/12/2279aa.md?p=2).
- (b) **Involuntary liquidation—**
  - (1) **In general—** The Farm [Credit](/usc/12/5481.md?p=7) Administration [Board](/usc/12/2279aa.md?p=2) may appoint a conservator or receiver for the [Corporation](/usc/12/2279aa.md?p=4) under the circumstances specified in [section 2183(b) of this title](/usc/12/2183.md?p=b).
  - (2) **Application—** In applying [section 2183(b) of this title](/usc/12/2183.md?p=b) to the [Corporation](/usc/12/2279aa.md?p=4) under [paragraph (1)](#b-1)—
    - (A) the [Corporation](/usc/12/2279aa.md?p=4) shall also be considered insolvent if the [Corporation](/usc/12/2279aa.md?p=4) is unable to pay its debts as they fall due in the ordinary course of business;
    - (B) a conservator may also be appointed for the [Corporation](/usc/12/2279aa.md?p=4) if the authority of the [Corporation](/usc/12/2279aa.md?p=4) to purchase [qualified loans](/usc/12/2279aa.md?p=7) or issue or [guarantee](/usc/12/2279aa.md?p=5) loan-backed securities is suspended; and
    - (C) a receiver may also be appointed for the [Corporation](/usc/12/2279aa.md?p=4) if—
      - (i)
        - (I) the authority of the [Corporation](/usc/12/2279aa.md?p=4) to purchase [qualified loans](/usc/12/2279aa.md?p=7) or issue or [guarantee](/usc/12/2279aa.md?p=5) loan-backed securities is suspended; or
        - (II) the [Corporation](/usc/12/2279aa.md?p=4) is classified under [section 2279bb–4 of this title](/usc/12/2279bb–4.md) as within level III or IV and the alternative actions available under part B are not satisfactory; and
      - (ii) the Farm [Credit](/usc/12/5481.md?p=7) Administration determines that the appointment of a conservator would not be appropriate.
  - (3) **No effect on supervisory actions—** The grounds for appointment of a conservator for the [Corporation](/usc/12/2279aa.md?p=4) under this subsection shall be in addition to those in [section 2279bb–6 of this title](/usc/12/2279bb–6.md).
- (c) **Appointment of conservator or receiver—**
  - (1) **Qualifications—** Notwithstanding [section 2183(b) of this title](/usc/12/2183.md?p=b), if a conservator or receiver is appointed for the [Corporation](/usc/12/2279aa.md?p=4), the conservator or receiver shall be—
    - (A) the Farm [Credit](/usc/12/5481.md?p=7) Administration or any other governmental entity or employee, including the Farm [Credit](/usc/12/5481.md?p=7) System Insurance [Corporation](/usc/12/2279aa.md?p=4); or
    - (B) any [person](/usc/12/5481.md?p=19) that—
      - (i) has no claim against, or financial interest in, the [Corporation](/usc/12/2279aa.md?p=4) or other basis for a conflict of interest as the conservator or receiver; and
      - (ii) has the financial and management expertise necessary to direct the operations and affairs of the [Corporation](/usc/12/2279aa.md?p=4) and, if necessary, to liquidate the [Corporation](/usc/12/2279aa.md?p=4).
  - (2) **Compensation—**
    - (A) **In general—** A conservator or receiver for the [Corporation](/usc/12/2279aa.md?p=4) and professional personnel (other than a Federal employee) employed to represent or assist the conservator or receiver may be compensated for activities conducted as, or for, a conservator or receiver.
    - (B) **Limit on compensation—** [Compensation](/usc/12/2279bb.md?p=1) may not be provided in amounts greater than the [compensation](/usc/12/2279bb.md?p=1) paid to employees of the Federal Government for similar services, except that the Farm [Credit](/usc/12/5481.md?p=7) Administration may provide for [compensation](/usc/12/2279bb.md?p=1) at higher rates that are not in excess of rates prevailing in the private sector if the Farm [Credit](/usc/12/5481.md?p=7) Administration determines that [compensation](/usc/12/2279bb.md?p=1) at higher rates is necessary in order to recruit and retain competent personnel.
    - (C) **Contractual arrangements—** The conservator or receiver may contract with any governmental entity, including the Farm [Credit](/usc/12/5481.md?p=7) System Insurance [Corporation](/usc/12/2279aa.md?p=4), to make personnel, services, and facilities of the entity available to the conservator or receiver on such terms and [compensation](/usc/12/2279bb.md?p=1) arrangements as shall be mutually agreed, and each entity may provide the same to the conservator or receiver.
  - (3) **Expenses—** A valid claim for expenses of the conservatorship or receivership (including [compensation](/usc/12/2279bb.md?p=1) under [paragraph (2)](#c-2)) and a valid claim with respect to a loan made under [subsection (f)](#f) shall—
    - (A) be paid by the conservator or receiver from funds of the [Corporation](/usc/12/2279aa.md?p=4) before any other valid claim against the [Corporation](/usc/12/2279aa.md?p=4); and
    - (B) may be secured by a lien, on such property of the [Corporation](/usc/12/2279aa.md?p=4) as the conservator or receiver may determine, that shall have priority over any other lien.
  - (4) **Liability—** If the conservator or receiver for the [Corporation](/usc/12/2279aa.md?p=4) is not a Federal entity, or an officer or employee of the Federal Government, the conservator or receiver shall not be personally liable for damages in tort or otherwise for an act or omission performed pursuant to and in the course of the conservatorship or receivership, unless the act or omission constitutes gross negligence or any form of intentional tortious conduct or criminal conduct.
  - (5) **Indemnification—** The Farm [Credit](/usc/12/5481.md?p=7) Administration may allow indemnification of the conservator or receiver from the assets of the conservatorship or receivership on such terms as the Farm [Credit](/usc/12/5481.md?p=7) Administration considers appropriate.
- (d) **Judicial review of appointment—**
  - (1) **In general—** Notwithstanding [subsection (i)(1)](#i-1), not later than 30 days after a conservator or receiver is appointed under [subsection (b)](#b), the [Corporation](/usc/12/2279aa.md?p=4) may bring an action in the United States District Court for the District of Columbia for an order requiring the Farm [Credit](/usc/12/5481.md?p=7) Administration [Board](/usc/12/2279aa.md?p=2) to remove the conservator or receiver. The court shall, on the merits, dismiss the action or direct the Farm [Credit](/usc/12/5481.md?p=7) Administration [Board](/usc/12/2279aa.md?p=2) to remove the conservator or receiver.
  - (2) **Stay of other actions—** On the commencement of an action under [paragraph (1)](#d-1), any court having jurisdiction of any other action or enforcement proceeding authorized under this chapter to which the [Corporation](/usc/12/2279aa.md?p=4) is a party shall stay the action or proceeding during the pendency of the action for removal of the conservator or receiver.
- (e) **General powers of conservator or receiver—** The conservator or receiver for the [Corporation](/usc/12/2279aa.md?p=4) shall have such powers to conduct the conservatorship or receivership as shall be provided pursuant to regulations adopted by the Farm [Credit](/usc/12/5481.md?p=7) Administration [Board](/usc/12/2279aa.md?p=2). Such powers shall be comparable to the powers available to a conservator or receiver appointed pursuant to [section 2183(b) of this title](/usc/12/2183.md?p=b).
- (f) **Borrowings for working capital—**
  - (1) **In general—** If the conservator or receiver of the [Corporation](/usc/12/2279aa.md?p=4) determines that it is likely that there will be insufficient funds to pay the ongoing administrative expenses of the conservatorship or receivership or that there will be insufficient liquidity to fund maturing obligations of the conservatorship or receivership, the conservator or receiver may borrow funds in such amounts, from such sources, and at such rates of interest as the conservator or receiver considers necessary or appropriate to meet the administrative expenses or liquidity needs of the conservatorship or receivership.
  - (2) **Working capital from Farm Credit banks—** A Farm [Credit](/usc/12/5481.md?p=7) bank may loan funds to the conservator or receiver for a loan authorized under [paragraph (1)](#f-1) or, in the event of receivership, a Farm [Credit](/usc/12/5481.md?p=7) bank may purchase assets of the [Corporation](/usc/12/2279aa.md?p=4).
- (g) **Agreements against interests of conservator or receiver—** No agreement that tends to diminish or defeat the right, title, or interest of the conservator or receiver for the [Corporation](/usc/12/2279aa.md?p=4) in any asset acquired by the conservator or receiver as conservator or receiver for the [Corporation](/usc/12/2279aa.md?p=4) shall be valid against the conservator or receiver unless the agreement—
  - (1) is in writing;
  - (2) is executed by the [Corporation](/usc/12/2279aa.md?p=4) and any [person](/usc/12/5481.md?p=19) claiming an adverse interest under the agreement, including the obligor, contemporaneously with the acquisition of the asset by the [Corporation](/usc/12/2279aa.md?p=4);
  - (3) is approved by the [Board](/usc/12/2279aa.md?p=2) or an appropriate committee of the [Board](/usc/12/2279aa.md?p=2), which approval shall be reflected in the minutes of the [Board](/usc/12/2279aa.md?p=2) or committee; and
  - (4) has been, continuously, from the time of the agreement’s execution, an official record of the [Corporation](/usc/12/2279aa.md?p=4).
- (h) **Report to Congress—** On a determination by the receiver for the [Corporation](/usc/12/2279aa.md?p=4) that there are insufficient assets of the receivership to pay all valid claims against the receivership, the receiver shall submit to the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury, the Committee on Agriculture of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the financial condition of the receivership.
- (i) **Termination of authorities—**
  - (1) **Corporation—** The charter of the [Corporation](/usc/12/2279aa.md?p=4) shall be canceled, and the authority provided to the [Corporation](/usc/12/2279aa.md?p=4) by this subchapter shall terminate, on such date as the Farm [Credit](/usc/12/5481.md?p=7) Administration [Board](/usc/12/2279aa.md?p=2) determines is appropriate following the placement of the [Corporation](/usc/12/2279aa.md?p=4) in receivership, but not later than the conclusion of the receivership and discharge of the receiver.
  - (2) **Oversight—** The [Office](/usc/12/2279bb.md?p=4) of Secondary Market Oversight established under [section 2279aa–11 of this title](/usc/12/2279aa–11.md) shall be abolished, and [section 2279aa–11(a) of this title](/usc/12/2279aa–11.md?p=a) and part B shall have no force or effect, on such date as the Farm [Credit](/usc/12/5481.md?p=7) Administration [Board](/usc/12/2279aa.md?p=2) determines is appropriate following the placement of the [Corporation](/usc/12/2279aa.md?p=4) in receivership, but not later than the conclusion of the receivership and discharge of the receiver.

## Source credit

(Pub. L. 92–181, title VIII, § 8.41, as added Pub. L. 104–105, title I, § 118, Feb. 10, 1996, 110 Stat. 168.)