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Simple English definitions for legal terms
federal farm credit bank
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A quick definition of federal farm credit bank:
Federal Farm Credit Bank: A bank that helps farmers and other businesses related to farming by providing them with money they need to grow their businesses. It was created by the government and is watched over by the Farm Credit Administration. It is made up of banks that used to be called federal land banks and federal intermediate credit banks.
A more thorough explanation:
Definition: The Federal Farm Credit Bank is a type of financial institution that is federally chartered and created to provide credit to farm-related enterprises. It is part of a system of banks that resulted from a merger of federal land banks and federal intermediate credit banks. These banks are supervised by the Farm Credit Administration.
Example: A farmer who needs to purchase new equipment for their farm may apply for a loan from a Federal Farm Credit Bank. The bank will review the farmer's financial history and creditworthiness before deciding whether to approve the loan.
Explanation: This example illustrates how a Federal Farm Credit Bank provides credit to farm-related enterprises, in this case, a farmer who needs to purchase equipment. The bank's role is to assess the borrower's creditworthiness and provide the necessary funds to support their business operations.
Federal Energy Regulatory Commission | Federal Farm Credit Banks Funding Corporation