12 U.S.C. § 2279aa | Definitions

For purposes of this subchapter:

(1)

Agricultural real estate

The term “agricultural real estate” means—

(A)

a parcel or parcels of land, or a building or structure affixed to the parcel or parcels, that—

(i)

is used for the production of one or more agricultural commodities or products; and

(ii)

consists of a minimum acreage or is used in producing minimum annual receipts, as determined by the Corporation; or

(B)

a principal residence that is a single family, moderate-priced residential dwelling located in a rural area, excluding—

(i)

any community having a population in excess of 2,500 inhabitants; and

(ii)

any dwelling, excluding the land to which the dwelling is affixed, with a value exceeding $100,000 (as adjusted for inflation).

(2)

Board

section 2279aa–2 of this titleThe term “Board” means the board of directors established under .

(3)

Certified facility

The term “certified facility” means—

(A)

section 2279aa–5 of this title an agricultural mortgage marketing facility that is certified under ; or

(B)

the Corporation and any affiliate thereof.

(4)

Corporation

section 2279aa–1 of this titleThe term “Corporation” means the Federal Agricultural Mortgage Corporation established in .

(5)

Guarantee

The term “guarantee” means the guarantee of timely payment of the principal and interest on securities representing interests in, or obligations backed by, pools of qualified loans, in accordance with this subchapter.

(6)

Originator

The term “originator” means any Farm Credit System institution, bank, insurance company, business and industrial development company, savings and loan association, association of agricultural producers, agricultural cooperative, commercial finance company, trust company, credit union, or other entity that originates and services agricultural mortgage loans.

(7)

Qualified loan

The term “qualified loan” means an obligation—

(A)

(i)

that is secured by a fee-simple or leasehold mortgage with status as a first lien, on agricultural real estate located in the United States that is not subject to any legal or equitable claims deriving from a preceding fee-simple or leasehold mortgage;

(ii)

of—

(I)

a citizen or national of the United States or an alien lawfully admitted for permanent residence in the United States; or

(II)

a private corporation or partnership whose members, stockholders, or partners holding a majority interest in the corporation or partnership are individuals described in subclause (I); and

(iii)

of a person, corporation, or partnership that has training or farming experience that, under criteria established by the Corporation, is sufficient to ensure a reasonable likelihood that the loan will be repaid according to its terms;

(B)

7 U.S.C. 1921 that is the portion of a loan guaranteed by the Secretary of Agriculture pursuant to the Consolidated Farm and Rural Development Act ( et seq.), except that—

(i)

section 2279aa–6 of this title subsections (b) and (c) of , and sections 2279aa–8 and 2279aa–9 of this title, shall not apply to the portion of a loan guaranteed by the Secretary or to an obligation, pool, or security representing an interest in or obligation backed by a pool of obligations relating to the portion of a loan guaranteed by the Secretary; and

(ii)

the portion of a loan guaranteed by the Secretary shall be considered to meet all standards for qualified loans for all purposes under this chapter; or

(C)

7 U.S.C. 901 that is a loan, or an interest in a loan, for an electric or telephone facility by a cooperative lender to a borrower that has received, or is eligible to receive, a loan under the Rural Electrification Act of 1936 ( et seq.).

(8)

State

section 2277a of this titleThe term “State” has the meaning given such term in .

Pub. L. 92–181, title VIII, § 8 Pub. L. 100–233, title VII, § 702Jan. 6, 1988101 Stat. 1686 Pub. L. 100–399, title VI, § 601(a)Aug. 17, 1988102 Stat. 1005 Pub. L. 101–624, title XVIII, § 1839Nov. 28, 1990104 Stat. 3834 Pub. L. 104–105, title IFeb. 10, 1996110 Stat. 163–165 Pub. L. 110–234, title V, § 5406(a)May 22, 2008122 Stat. 1158 Pub. L. 110–246, § 4(a)June 18, 2008122 Stat. 1664 Pub. L. 115–334, title V, § 5411(42)Dec. 20, 2018132 Stat. 4683(.0, as added , , ; amended , , ; , , ; , §§ 101, 102, 108(c)(1), 109(b)(1), , ; , , ; , title V, § 5406(a), , , 1920; , , .)

Editorial Notes

References in Text

Pub. L. 87–128Aug. 8, 196175 Stat. 307 section 1921 of Title 7The Consolidated Farm and Rural Development Act, referred to in par. (7)(B), is title III of , , , which is classified principally to chapter 50 (§ 1921 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

act May 20, 1936, ch. 432 49 Stat. 1363 section 901 of Title 7The Rural Electrification Act of 1936, referred to in par. (7)(C), is , , which is classified generally to chapter 31 (§ 901 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see and Tables.

Codification

Pub. L. 110–234 Pub. L. 110–246 Pub. L. 110–234 section 4(a) of Pub. L. 110–246 and made identical amendments to this section. The amendments by were repealed by .

Amendments

Pub. L. 115–334, § 5411(42)(A)section 2279aa–2 of this title2018—Par. (2). , substituted “means the board of directors established under .” for “means—

section 2279aa–2(a) of this title“(A) the interim board of directors established in ; and

section 2279aa–2(b) of this title“(B) the permanent board of directors established in ;

as the case may be.”

Pub. L. 115–334, § 5411(42)(B)section 2279aa–2(a) of this titlePar. (6). , (C), redesignated par. (7) as (6) and struck out former par. (6) which defined “interim board” to mean the interim board of directors established in .

Pub. L. 115–334, § 5411(42)(C)Par. (7). , (D), redesignated par. (9) as (7) and substituted “(b) and (c)” for “(b) through (d)” in subpar. (B)(i). Former par. (7) redesignated (6).

Pub. L. 115–334, § 5411(42)(B)section 2279aa–2(b) of this titlePar. (8). , (C), redesignated par. (10) as (8) and struck out former par. (8) which defined “permanent board” to mean the permanent board of directors established in .

Pub. L. 115–334, § 5411(42)(C)Pars. (9), (10). , redesignated pars. (9) and (10) as (7) and (8), respectively.

Pub. L. 110–246, § 5406(a)2008—Par. (9)(C). , added subpar. (C).

Pub. L. 104–105, § 1011996—Par. (1)(B)(ii). , substituted “, excluding the land to which the dwelling is affixed, with a value” for “with a purchase price”.

Pub. L. 104–105, § 102(1)Par. (3)(A). , substituted “an agricultural mortgage marketing” for “a secondary marketing agricultural loan”.

Pub. L. 104–105, § 102(2)Par. (3)(B). , struck out “, but only with respect to qualified loans described in paragraph (9)(B)” after “thereof”.

Pub. L. 104–105Par. (9)(B)(i). , §§ 108(c)(1), 109(b)(1), substituted “(d)” for “(f)” and “2279aa–8” for “2279aa–7, 2279aa–8,”.

Pub. L. 101–624, § 1839(a)section 2279aa–5 of this title1990—Par. (3). , amended par. (3) generally. Prior to amendment, par. (3) read as follows: “The term ‘certified facility’ means a secondary marketing agricultural loan facility that is certified under .”

Pub. L. 101–624, § 1839(b)Par. (9). , amended par. (9) generally. Prior to amendment, par. (9) read as follows: “The term ‘qualified loan’ means an obligation that—

“(A) is secured by a fee-simple or leasehold mortgage with status as a first lien on agricultural real estate located in the United States that is not subject to any legal or equitable claims deriving from a preceding fee-simple or leasehold mortgage;

“(B) is an obligation of—

“(i) a citizen or national of the United States or an alien lawfully admitted for permanent residence in the United States; or

“(ii) a private corporation or partnership whose members, stockholders, or partners holding a majority interest in the corporation or partnership are individuals described in clause (i); and

“(C) is an obligation of a person, corporation, or partnership that has training or farming experience that, under criteria established by the Corporation, is sufficient to ensure a reasonable likelihood that the loan will be repaid according to its terms.”

Pub. L. 100–3991988—Par. (9)(B)(ii). substituted “holding” for “hold” and struck out “and” before “are”.

Statutory Notes and Related Subsidiaries

Effective Date of 2008 Amendment

Pub. L. 110–234 Pub. L. 110–246May 22, 2008Pub. L. 110–234 section 4 of Pub. L. 110–246 section 8701 of Title 7Amendment of this section and repeal of by effective , the date of enactment of , see , set out as an Effective Date note under , Agriculture.

Effective Date of 1988 Amendment

Pub. L. 100–399 Pub. L. 100–233Jan. 6, 1988section 1001(a) of Pub. L. 100–399 section 2002 of this titleAmendment by effective as if enacted immediately after enactment of , which was approved , see , set out as a note under .

Statement of Purpose

Pub. L. 100–233, title VII, § 701Jan. 6, 1988101 Stat. 1686

Pub. L. 100–233 section 9105 of Title 31“It is the purpose of this subtitle [subtitle A (§§ 701–705) of title VII of , enacting this subchapter, amending sections 2012, 2033, 2072, and 2093 of this title and , Money and Finance, and enacting provisions set out as a note below]—

“(1)

to establish a corporation chartered by the Federal Government;

“(2)

to authorize the certification of agricultural mortgage marketing facilities by the corporation;

“(3)

to provide for a secondary marketing arrangement for agricultural real estate mortgages that meet the underwriting standards of the corporation—

“(A)

to increase the availability of long-term credit to farmers and ranchers at stable interest rates;

“(B)

to provide greater liquidity and lending capacity in extending credit to farmers and ranchers; and

“(C)

to provide an arrangement for new lending to facilitate capital market investments in providing long-term agricultural funding, including funds at fixed rates of interest; and

“(4)

to enhance the ability of individuals in small rural communities to obtain financing for moderate-priced homes.”

, , , provided that:

GAO Studies

Pub. L. 100–233, title VII, § 704Jan. 6, 1988101 Stat. 1706 Pub. L. 100–399, title VI, § 603Aug. 17, 1988102 Stat. 1006 Pub. L. 100–233 section 9105 of Title 31Jan. 6, 1990, , , as amended by , , , directed Comptroller General of United States to conduct studies of (1) implementation of amendments made by subtitle A (§§ 701–705) of title VII of (which enacted this subchapter and amended sections 2012, 2033, 2072, and 2093 of this title and , Money and Finance) by Federal Agricultural Mortgage Corporation and effect of operations of Corporation on producers, Farm Credit System, and other lenders, and capital markets, (2) feasibility and appropriateness of promoting establishment of a secondary market for securities representing interests in, or obligations backed by, pools of agricultural real estate loans for which a guarantee had not been provided by Federal Agricultural Mortgage Corporation, and (3) feasibility of expanding authority granted under amendments made by such subtitle A to authorize sale of securities based on or backed by a trust or pool consisting of loans made to farm-related and rural small businesses, and required, not later than , Comptroller General to transmit to Congress a report on the studies, including therein such recommendations for administrative action and legislation as might be appropriate.