[Code of Federal Regulations]

[Title 12, Volume 6]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR614.4030]



[Page 106-107]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 614_LOAN POLICIES AND OPERATIONS--Table of Contents

 

                      Subpart A_Lending Authorities

 

Sec. 614.4030  Federal land credit associations.



    (a) Long-term real estate lending. Federal land credit associations 

are authorized, subject to the requirments of Sec. 614.4200, to make 

real estate mortgage loans with maturities of not less than 5 years nor 

more than 40 years and continuing commitments to make such loans.

    (b) Loan participations. Subject to the requirements of subpart H of 

this part, Federal land credit associations may enter into participation 

agreements with:

    (1) Farm Credit banks and associations that are direct lenders and 

lenders that are not Farm Credit institutions on loans of the type it is 

authorized to make under title I of the Act;

    (2) Farm Credit banks and associations that are direct lenders on 

loans it is not authorized to make, provided the borrower eligibility, 

membership, term, amount, loan security, and stock or participation 

certificate requirements of the originating institution are met; and

    (3) The Federal Agricultural Mortgage Corporation to the extent 

provided in Sec. 614.4055.

    (c) Other interests in loans. (1) Subject to the requirements of 

subpart H of this part and the supervision of their respective funding 

banks, Federal land credit associations may sell interests in loans made 

under paragraph (a) of this section only to:

    (i) Farm Credit System institutions, as authorized by their 

respective funding banks;

    (ii) Other lenders that are not Farm Credit System institutions, as 

authorized by their respective funding banks; and



[[Page 107]]



    (iii) Any certified agricultural mortgage marketing facility, as 

defined by section 8.0(3) of the Act, for the purpose of pooling and 

securitizing such loans under title VIII of the Act.

    (2) Subject to the requirements of subpart H of this part, Federal 

land credit associations may purchase interests in loans that comply 

with the requirements of paragraph (a) of this section and nonvoting 

stock from Farm Credit System institutions.

    (3) Federal land credit associations, in their capacity as certified 

agricultural mortgage marketing facilities under title VIII of the Act, 

may purchase interests in loans (other than participation interests 

under paragraph (b) of this section) from institutions other than Farm 

Credit System institutions for the purpose of pooling and securitizing 

such loans under title VIII of the Act.



[55 FR 24880, June 19, 1990, as amended at 57 FR 38247, Aug. 24, 1992; 

62 FR 51013, Sept. 30, 1997; 64 FR 43049, Aug. 9, 1999; 65 FR 24102, 

Apr. 25, 2000; 67 FR 1285, Jan. 10, 2002]