598
PUBLIC LAW 92-181-DEC. 10, 1971
[85 STAT.
become a stockholder. A copy of the articles of association shall be forwarded to the Governor of the F a r m Credit Administration with the recommendations of the bank concerning the need for such an association in order to adequately serve the credit needs of eligible persons in the proposed territory and whether that territory includes any area described in the charter of another production credit association. The Governor for good cause shown may deny the charter. Upon approval of the proposed articles by the Governor and the issuance of a charter, the association shall become as of such date a federally chartered body corporate and an instrumentality of the United States. The Governor shall have the power, under rules and regulations prescribed by him or by prescribing in the terms of the charter or by approval of bylaws of the association, to provide for the organization of the association, the initial amount of stock of the association, the territory within which its operations may be carried on, and to direct at any time such changes in the charter as he finds necessary for the accomplishment of the purposes of this Act. SEC. 2.11. BOARD OF DIRECTORS.—Each production credit associa-
tion shall elect from its voting members a board of directors of such number, for such terms, with such qualifications, and in such manner as may be required by its bylaws. SEC. 2.12. GENERAL CORPORATE POWERS.—Each producticm credit association shall be a body corporate and, subject to supervision by the Federal intermediate credit bank for the district and the F a r m Credit Administration, shall have power to— (1) Have succession until terminated in accordance with this Act or nny other Act of Congress. (2) Adopt and use a corporate seal. (3) Make contracts. (4) Sue and be sued. (5) Acquire, hold, dispose, and otherwise exercise all of the usual incidents of ownership of real and personal property necessary or convenient to its business. (6) Operate under the direction of its boaid of directors in accordance with this Act. (7) Subscribe to stock of the bank. (8) Purchase stock of the bank held by other production credit associations and stock of other production credit associations. (9) Contribute to the capital of the bank or other production credit associations. (10) Invest its funds as may be approved by the Federal intermediate credit bank under regulations of the Farm Credit Administration and deposit its current funds and securities with the Federal intermediate credit bank, a member bank of the Federal Reserve System, or any bank insured under the Federal Deposit Insurance Corporation, and may pay fees therefor and receive interest thereon as may be agreed. (11) Buy and sell obligations of or insured by the United States or of any agency thereof or of any banks of the Farm Credit System. (12) Borrow money from the Federal intermediate credit bank, and with the approval of such bank, borrow from and issue its notes or other obligations to any commercial bank or other financial institution. (13) Make and participate in loans, accept advance payments, and |:)rovide services and other assistance as authorized in this title and charge fees therefor. (14) Endorse and become liable on loans discounted or pledged to the Federal intermediate credit bank. (15) Enter into loss sharing agreements with the Federal intermediate credit bank and other production credit associations.
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