Research On Farmer Mac's Legal System

China has fasten its financial system of revolution and innovation under the central government's leadership. However, under this process, due to rural financial revolution estimated by the government policies, the lack of legality safeguard and legal system revolution in rural financial system lead to rural financial legal system construction has been policies-oriented all the time and suffer from the low legal hierarchy.With the in-depth development of rural economic, rural financial legal system has an increasing obvious suppression on finance development and the lack of legal system in rural finance area do damage a lot in rural finance. Rural residents can not enjoy the modern finance with the insufficient regular finance supply in rural area and the huge financing gap lead to the increasing informal finance in rural area which without supervision results in high monetary rate and fiance risks in rural financial system.In order to solve such problems,it takes highly concerns urgently to adjust legality to support and safeguard the rural financial system.Farmer Mac has been established through the "Farm Credit Act" amendment in 1987, which aiming to enhancing the fluidity in rural finance. Later, Farm Mac has been adjusted though for several times that adjusted it business model and scale, which enables Farm Mac constantly adapt to the new development of rural finance. Therefore, the enjoyment of constant development of Farmer Mac is related to its perfect organization legal system. Firstly,Farmer Mac's founding legal system rules that it is a government-sponsored and private-running company, which enables Farmer Mac posses sub-policy identity.Secondly, Farmer Mac's operation legal system sets its business scopes,managing system and risk management,which not only make Farmer Mac achieves its policy goals,but also enables it to have the ability of solid operation.Thirdly,Farmer Mac's supervision legal system formulates multi-layers supervision system reflecting the strict supervision standard to Farmer Mac.Fourthly,Farmer Mac's withdrawal legal system brings out the replaceable of the operational subject, it is to the benefit of reducing the system risk when Farmer Mac sinks into the operation of risk.Federal Agricultural Mortgage Corporation is a federally chartered and owned by the private equity, having the features to ensure that the company services for agriculture property. At the same time, a complete legal system operating organization and the open rural financial legal system enhance secondary market liquidity of agricultural credit system, and effectively reduce the imbalance of regional agricultural lending, and promote the development of the agricultural credit.