Farmers’ Credit Associations

Miss. Code Ann. tit. 81, ch. 17

in effect

Miss. Code Ann. § 81-17-1 Title.

This chapter may be known and referred to as the “Farmers’ Credit Association Law.”

Miss. Code Ann. § 81-17-3 Declaration of policy.

It is the purpose of this chapter to promote, encourage and assist the united action of the farmers of the state, through co-operative methods in obtaining necessary moneys and credits for the members of the associations contemplated herein during a longer period of time and at a lower rate of interest than is usually obtainable by those engaged in agricultural, garden, and orchard production, the growing of all kinds of live stock, of beef cattle, and of dairying cattle, and of breeding cattle, sheep and hogs, and all kinds of domestic animals.

Miss. Code Ann. § 81-17-5 Definitions.

The terms used in this chapter, in addition to their common use and meaning are also defined as follows: The term “agricultural products” shall include horticultural, viticultural, dairy, live stock, poultry, bee, fowl, and any other farm products; The term “member” shall include actual members of associations without capital stock, and holders of common stock in associations organized with capital stock; The term “association” means any association organized under this chapter; and, The term “person” shall include individuals, firms, partnerships, corporations, and associations. Associations organized hereunder shall be deemed nonprofit, inasmuch as they are not organized to make profits for themselves, as such, or for their members, as such, but only for their members as producers.

Miss. Code Ann. § 81-17-7 Who may organize.

Ten or more persons, a majority of whom are residents of this state, engaged in the production of any of the products named in Section 81-17-5 may form an association, with or without capital stock, under the provisions hereof.

Miss. Code Ann. § 81-17-9 Purposes.

An association may be organized hereunder to engage in any one or more of the activities mentioned above or in financing those engaged in any one or more of such activities, or engaged in doing both.

Miss. Code Ann. § 81-17-11 Powers.

Each association incorporated under this chapter, in addition to the powers granted by the Mississippi statutes to corporations, shall have the following powers: To engage in any one or more of the activities named in Sections 81-17-3 and 81-17-5. To contract and be contracted with, to sue and be sued. To borrow money from any lender and through any channels that the same may be obtained, and to secure the same in any lawful way that may be desirable. To issue its notes, obligations, indorsements and underwritings, to sell, discount, hypothecate, or pledge its bills receivable, mortgages, trust deeds, notes, and other securities. To lend money to its members, and take securities therefor in such form, way and manner, as it may deem advisable. By proper bylaws to make and keep such associations mutual. To make all necessary bylaws for the government of said associations. To issue common and preferred stock, and fix the relative status of each such class of stock to the other, both as to its stock status and as to its dividend status. To create and set up reserves, and make them cumulative. To require that each borrower invest a certain percentage, not exceeding ten percent, which may be made payable out of the face of his loan, in the stock of said association, and the same may be apportioned between common stock and preferred stock, as may be provided by the bylaws of the association. To make bylaws controlling the sale or transfer of stock in said association, or the retirement or withdrawal thereof. To lease or acquire sufficient personal and real property for the necessities of its business. To have and use a corporate seal.

Miss. Code Ann. § 81-17-13 Membership.

Any person, partnership, or corporation, may become a member of any one, or more, associations. Every applicant for membership must become a borrower to entitle him to be admitted as a member. Each applicant must sign a writing, in the form of a recordable instrument, declaring himself to be a member of the association to which he is admitted. This may be done by a separate writing, or by and through a declaration to that effect written into his mortgage or trust deed, upon faith of which he borrows money from the association. Such writing shall also contain therein a declaration of the parties signatory thereto that such applicant holds himself thenceforth bound by the laws of the association then adopted, or that may be thereafter adopted. In addition to the common stock taken in the association by each borrower, each member shall be liable for an assessment of ten percent on the face of his loan, to be secured by the security given for the loan, in case there be losses in any year’s operations which require such assessment. Each borrower, for each loan made to him, shall be treated and considered as being a new member, in so far as the laws and bylaws of the association are concerned and to be applied.

Miss. Code Ann. § 81-17-15 Articles of association.

Each association formed under this chapter must prepare and file articles of association, setting forth: The name of the association; The purpose for which it is formed; The place where its principal business will be transacted; The term for which it is to exist, not exceeding fifty (50) years; The number of directors thereof, which must not be less than five (5), and may be any number in excess thereof, and the term of office of such directors. The number of directors may, from time to time, be increased at any annual meeting of the stockholders. If organized without capital, whether the property rights and interest of each member shall be equal or unequal; and, if unequal, the articles shall set forth the general rule or rules applicable to all members by which property rights and interests, respectively, of each member may and shall be determined and fixed; and provisions for the admission of new members who shall be entitled to share in the property of the association with the old members, in accordance with such general rule or rules. This paragraph of the articles of association shall not be altered, amended, or repealed except by the written consent of the vote of three-fourths of the members. The articles must be subscribed by the incorporators and acknowledged by one of them before an officer authorized by the law of this state to take and certify acknowledgments; and shall be filed and recorded in the office of the secretary of state.

Miss. Code Ann. § 81-17-17 Amendments to articles of association.

Any amendment to the articles of association must first be approved by a vote of not less than two-thirds of all of the members of the board of directors. Such proposed amendment shall then be submitted to either a regular or a special meeting of the members of the association, and its adoption shall require a majority of all the members whose names are of record on the books of the association. Absent members may vote at such meeting, on such proposed amendments, either in writing, or by proxy, addressed to the secretary of the association. In such case the secretary shall read and announce the vote of such absent members. Amendments to the articles of association when so adopted, shall be certified to by the president and secretary of the association, and shall be filed with the Secretary of State. Such certification and filing shall be conclusive evidence of the validity of such amendment.

Miss. Code Ann. § 81-17-19 Organization.

The charter to organize any association under this chapter may be applied for by three proposed members of such association, such application to be made in the manner and form as prescribed by the chapter on corporations, when, and whereupon, such charter may be granted by the state.

Miss. Code Ann. § 81-17-21 Bylaws.

Said associations may make and adopt any and all bylaws, not in conflict with the laws of the State of Mississippi, for the governing and control of its affairs. Such bylaws shall provide for such officers as may be necessary for the operation of said association, and name the time for annual meetings of stockholders and the officers, and for such other meetings as may be deemed necessary.

Miss. Code Ann. § 81-17-23 Surplus and sinking funds invested.

The associations shall have power to invest and reinvest the surplus and sinking funds as may accumulate in its hands from time to time for the use and benefit of its members and stockholders.

Miss. Code Ann. § 81-17-25 Tax exemption.

So long as said associations shall be kept mutual, and shall lend only to members, they shall be exempt from all forms of taxation; that is, from state, county, municipal, levee board and public improvement taxes, excepting ad valorem taxation of motor vehicles owned by said associations.

Source: Public.Resource.Org MS CodeURL: https://unicourt.github.io/cic-code-ms/transforms/ms/ocms/r78/gov.ms.code.title.81.htmlFetched: 6/10/2026