[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: 12CFR614.4580]



[Page 137-138]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 614_LOAN POLICIES AND OPERATIONS--Table of Contents

 

  Subpart P_Farm Credit Bank and Agricultural Credit Bank Financing of 

                      Other Financing Institutions

 

Sec. 614.4580  Limitation on the extension of funding, discount and 

other similar financial assistance to an OFI.



    (a) No obligation shall be purchased from or discounted for and no 

loan shall be made or other similar financial assistance extended by a 

Farm Credit Bank or agricultural credit bank to an OFI if the amount of 

such obligation added to the aggregate liabilities of such OFI, whether 

direct or contingent (other than bona fide deposit liabilities), exceeds 

ten times the paid-in and unimpaired capital and surplus of such OFI or 

the amount of such liabilities permitted under the laws of the 

jurisdiction creating such OFI, whichever is less.

    (b) It shall be unlawful for any national bank that is indebted to 

any



[[Page 138]]



Farm Credit Bank or agricultural credit bank, on paper discounted or 

purchased, to incur any additional indebtedness, if by virtue of such 

additional indebtedness its aggregate liabilities, direct or contingent, 

will exceed the limitation described in paragraph (a) of this section.