12 USC § 2016 - Interest rates and other charges

---
identifier: "/us/usc/t12/s2016"
source: "usc"
legal_status: "official_prima_facie"
title: "12 USC § 2016 - Interest rates and other charges"
title_number: 12
title_name: "BANKS AND BANKING"
section_number: "2016"
section_name: "Interest rates and other charges"
chapter_number: 23
chapter_name: "FARM CREDIT SYSTEM"
subchapter_number: "I"
subchapter_name: "FARM CREDIT BANKS"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 92–181, title I, § 1.8, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1626; amended Pub. L. 100–399, title IV, § 401(g), Aug. 17, 1988, 102 Stat. 996.)"
---


# § 2016. Interest rates and other charges

**(a)** **In general** Loans and discounts made by a Farm Credit Bank shall bear such rate or rates of interest or discount, and be on such terms and conditions, as may be determined by the board of directors of the bank from time to time.

**(b)** **Setting rates and charges** In setting rates and charges, it shall be the objective to provide the types of credit needed by eligible borrowers at the lowest reasonable costs on a sound business basis taking into consideration the cost of money to the bank, necessary reserve and expenses of the bank and associations, and providing services to members. The loan documents or discounting and financing agreements, may provide for the interest rate or rates to vary from time to time during the repayment period of the loan or agreement.

---

**Source Credit**: (Pub. L. 92–181, title I, § 1.8, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1626; amended Pub. L. 100–399, title IV, § 401(g), Aug. 17, 1988, 102 Stat. 996.)

## Editorial Notes

### Prior Provisions

A prior section 2016, .8, , ; , , , related to eligibility, prior to the general amendment of this subchapter by .

### Amendments

1988—Subsec. (a).  substituted “such rate or rates of interest or discount, and be” for “interest at a rate or rates, and”.

## Statutory Notes and Related Subsidiaries

### Effective Date of 1988 Amendment

Amendment by  effective immediately after amendment made by , which was effective 6 months after , see , set out as a note under .

### Effective Date

, , , provided that this section is effective 6 months after .