§ 121. Special powers. Any credit corporation organized under this
chapter may make loans to members of a cooperative corporation owning in
whole or in part the stock of the credit corporation; and no loans shall
be otherwise made. No loans shall be made for more than ten years; nor
for other than the agricultural, dairy, or horticultural purposes of the
borrower. In all cases, there shall be a written statement by the
borrower in the note, collateral agreement or signed application to the
effect that the loan will be used only for such purposes; and such
statement may be relied upon by the credit corporation. The credit
corporation may discount or pledge such note with a federal intermediate
credit bank, or other banks or banking institutions, with its guaranty
or endorsement, if required.

A credit corporation may invest its capital funds in bonds or
obligations of the United States or of any state or municipality, or
such other bonds as are authorized for investment by a savings bank or
in federal intermediate credit bank obligations, and may deposit or
hypothecate such securities with a federal intermediate credit bank, or
other banks or banking institutions, as security for notes discounted by
it.