§ 120. Organization. A cooperative corporation may be organized as an
agency, subsidiary or holding corporation to assist, further and finance
other cooperative corporations in their corporate purposes and
activities. A credit corporation may be organized solely for the purpose
of acting as an agency to enable cooperative corporations, organized or
operating under this chapter and the members or stockholders thereof, to
obtain loans from the federal intermediate credit bank under and
pursuant to an act of congress approved March fourth, nineteen hundred
and twenty-three, known as the agricultural credits act of nineteen
hundred and twenty-three, same being chapter eight of title twelve of
the code of laws of the United States as adopted by congress June
thirtieth, nineteen hundred and twenty-six, and amendments thereto. A
credit corporation may also be organized by a cooperative corporation
for the purpose of financing the ordinary crop operations of the members
of such cooperative corporation, through funds obtained by loans from
any sources or through the issue and sale of common or preferred stock,
bonds, debentures or other obligations of the credit corporation, and
the payment of such loans or obligations may be guaranteed by the
cooperative corporation whose members are being so financed.