Legal Definitions - federal intermediate credit bank

Definition: A type of bank that was part of a system of 12 regional banks created in 1923 to provide short-term loans to farmers and ranchers. The system is now merged with federal land banks to create the federal farm-credit system.

Example: A farmer in a rural area needs a loan to buy new equipment for their farm. They can apply for a loan from a federal intermediate credit bank, which specializes in providing credit to farmers and ranchers.

Explanation: The example illustrates how a federal intermediate credit bank provides credit to farmers and ranchers who may not have access to traditional banks or credit unions. These banks were created to support the agricultural industry and provide short-term loans to help farmers and ranchers manage their finances.