((a)) ** Establishment** There is hereby established the Federal Farm Credit Banks Funding Corporation (hereinafter in this section referred to as the “Corporation”), which shall be an institution of the Farm Credit System.
((b)) ** Duties** The Corporation—
((1)) shall issue, market, and handle the obligations of the banks of the Farm Credit System, and interbank or intersystem flow of funds as may from time to time be required;
((2)) acting for the banks of the Farm Credit System, subject to approval of the Farm Credit Administration, shall determine the amount, maturities, rates of interest, terms, and conditions of participation by the several banks in each issue of joint, consolidated, or System-wide obligations; and
((3)) shall exercise such other powers as were provided to the predecessor Federal Farm Credit Banks Funding Corporation in accordance with its charter issued under , in effect immediately before .
((c)) ** Officers and committees**
((1)) ** Designation** The board of directors may designate such officers and committees for such terms and such purposes as may be agreed on by the board.
((2)) ** Issuance of obligations** When appropriate to the board’s functions under this section, a committee of the board of directors of the Corporation, or representatives thereof, may act on behalf of the board in connection with the issuance of joint, consolidated, and System-wide obligations.
((d)) ** Board of directors**
((1)) ** Composition** The board of directors shall be composed of nine voting members and one nonvoting member, as follows:
((A)) Four voting members shall be current or former directors of the System banks elected by the shareholders of the Corporation.
((B)) Three voting members shall be chief executive officers or presidents of System banks elected by the shareholders of the Corporation.
((C)) Two voting members shall be appointed by the members elected under subparagraphs (A) and (B) after the elected members have received recommendations for such appointments from, and consulted with, the Secretary of the Treasury and the Chairman of the Board of Governors of the Federal Reserve System. The appointed members shall be selected from United States citizens—
((i)) who are not borrowers from, shareholders in, or employees or agents of any System institution, who are not affiliated with the Farm Credit Administration, and who are not actively engaged with a bank or investment organization that is a member of the Corporation’s selling group for System-wide securities; and
((ii)) who are experienced or knowledgeable in corporate and public finance, agricultural economics, and financial reporting and disclosure.
((D)) The president of the Corporation shall serve as a nonvoting member of the board.
((2)) ** Considerations** In selecting candidates under subparagraphs (A) and (B) of paragraph (1), due consideration shall be given to choosing individuals knowledgeable in agricultural economics, public and corporate finance, and financial reporting and disclosure.
((3)) ** Representation of board** The Farm Credit System Insurance Corporation shall not have representation on the board of directors of the Corporation.
((e)) ** Succession**
((1)) ** Assets and liabilities** The Corporation shall, by operation of law and without any further action by the Farm Credit Administration, the predecessor Federal Farm Credit Banks Funding Corporation (hereinafter referred to in this subsection as “the predecessor corporation”) chartered under this chapter, or any court, succeed to the assets of and assume all debts, obligations, contracts, and other liabilities of the predecessor corporation, matured or unmatured, accrued, absolute, contingent or otherwise, and whether or not reflected or reserved against on balance sheets, books of account, or records of the predecessor corporation.
((2)) ** Contracts** The existing contractual obligations, security instruments, and title instruments of the predecessor corporation shall, by operation of law and without any further action by the Farm Credit Administration, the predecessor corporation, or any court, become and be converted into obligations, entitlements, and instruments of the Corporation.
((3)) ** Stock** The stock of the predecessor corporation issued before , shall, by operation of law and without any further action by the Farm Credit Administration, the predecessor corporation, or any court, become and be converted into stock of the Corporation established by this section.January 6, 19881988-01-06
((4)) ** Taxation** The succession to assets, assumption of liabilities, conversion of obligations, instruments, and stock, and effectuation of any other transaction by the Corporation to carry out this subsection shall not be treated as a taxable event under the laws of any State or political subdivision thereof.