102d CONGRESS
2d Session
H. R. 6125
AN ACT
To enhance the financial safety and soundness of the banks and associations
of the Farm Credit System, and for other purposes.
HR 6125 EH
102d CONGRESS
2d Session
H. R. 6125
AN ACT
To enhance the financial safety and soundness of the banks and associations
of the Farm Credit System, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,

84f9da4729733b3b514b53e724639600303eacfb91a65de4af5c45b5e26162fb

(a) SHORT TITLE- This Act may be cited as the `Farm Credit Banks and
Associations Safety and Soundness Act of 1992'.
(b) TABLE OF CONTENTS- The table of contents of this Act is as follows:

d48b36bec8dabe66b1e73a0a5834b8b58444d07f6dc69f140d61b6ca66b81dfc

capital, supplemental premiums, and consolidation.

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TITLE II

-FARM CREDIT SYSTEM INSURANCE CORPORATION

c51b69ef5b28af7e250ad628bbcbc1b81c65c45e9651d6d0687ebd0f05f6ace2

TITLE IV

-CLARIFICATION OF CERTAIN AUTHORITIES

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TITLE V

-MISCELLANEOUS

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officers, and employees of Farm Credit System institutions.

c884bc72ba348dd8c81d24cb57ed4bd3bbd8d083d21c475519c2e7ff00805b43

Whenever in this Act an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provision of the
Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.), except to the extent
otherwise provided.

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Paragraph (1) of section 4.3A(a) (12 U.S.C. 2154a(a)(1)) is amended to
read as follows:
`(1) PERMANENT CAPITAL- The term `permanent capital' means--
`(A) current year retained earnings;
`(B) allocated and unallocated earnings (which, in the case of earnings
allocated in any form by a System bank to any association or other
recipient and retained by the bank, shall be considered, in whole or in
part, permanent capital of the bank or of any such association or other
recipient as provided under an agreement between the bank and each such
association or other recipient);
`(C) all surplus (less allowances for losses);
`(D) stock issued by a System institution, except--
`(i) stock that may be retired by the holder of the stock on repayment of
the holder's loan, or otherwise at the option or request of the holder; or
`(ii) stock that is protected under section 4.9A or is otherwise not at
risk; and
`(E) any other debt or equity instruments or other accounts that the Farm
Credit Administration determines appropriate to be considered permanent
capital.'.

dc5798c0b5fa4b6b6620ccb9383794ba0faa29de4bd48b50018b225d03f6f922

TITLE I

-IMPROVEMENTS TO FARM CREDIT SYSTEM SAFETY AND SOUNDNESS

Section 5.8 (12 U.S.C. 2242) is amended by adding at the end the following
new subsection:
`(e) The President shall appoint members of the Board who--
`(1) are experienced or knowledgeable in agricultural economics and
financial reporting and disclosure;
`(2) are experienced or knowledgeable in the regulation of financial
entities; or
`(3) have a strong financial, legal, or regulatory background.'.

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(a) IN GENERAL- Section 5.53 (12 U.S.C. 2277a-2) is amended to read
as follows:
`SEC. 5.53. BOARD OF DIRECTORS.
`(a) IN GENERAL-
`(1) ESTABLISHMENT- The management of the Corporation shall be vested in a
Board of Directors (referred to in this section as the `Board'). The Board
shall establish policies for the Corporation. The Board shall provide for
the performance of all the powers and duties vested in the Corporation.
`(2) APPOINTMENT- The Board shall consist of three members, who shall be
citizens of the United States and broadly representative of the public
interest. Members of the Board shall be appointed by the President, by
and with the advice and consent of the Senate. Not more than two members
of the Board shall be members of the same political party.
`(3) CHAIRPERSON- Of the persons appointed to the Board, one shall be
designated by the President to serve as Chairperson of the Board for the
duration of the term of the member.
`(4) POSTEMPLOYMENT PROHIBITION- A member of the Board shall be ineligible
during the time the member is in office and for 2 years thereafter to
hold any office, position, or employment in any institution of the Farm
Credit System.
`(b) TERM OF OFFICE-
`(1) IN GENERAL- The term of office of each member of the Board shall be 6
years, except that the terms of the two members, other than the Chairperson,
first appointed under subsection (a) shall expire, one on the expiration
of 2 years after the date of appointment, and one on the expiration of 4
years after the date of appointment.
`(2) SUCCESSION- Members of the Board shall not be appointed to succeed
themselves, except that the members first appointed under subsection (a)
for a term of less than 6 years may be reappointed for a full 6-year term
and members appointed to fill unexpired terms of 3 years or less may be
reappointed for a full 6-year term.
`(3) VACANCIES- Any vacancy shall be filled for the unexpired term on like
appointment. Any member of the Board shall continue to serve as a member
after the expiration of the term of the member until a successor has been
appointed and qualified.
`(c) ORGANIZATION-
`(1) OATH- Each member of the Board, within 15 days after notice of
appointment, shall subscribe to the oath of office.
`(2) QUORUM- The Board may transact business if a vacancy exists, if a
quorum is present. A quorum shall consist of two members of the Board.
`(3) MEETING- The Board shall hold meetings at such times and places as
the Board may fix and determine. The meetings shall be held on the call
of the Chairperson or any two Board members.
`(4) RULES; RECORDS- The Board shall adopt such rules as the Board considers
appropriate for the transaction of business by the Board, and shall keep
permanent and accurate records and minutes of the actions and proceedings
of the Board.
`(d) COMPENSATION-
`(1) IN GENERAL- The members of the Board shall devote their full time
and attention to the business of the Board.
`(2) CHAIRPERSON- The Chairperson of the Board shall receive compensation at
the rate prescribed for level III of the Executive Schedule under section
5314 of title 5, United States Code.
`(3) OTHER MEMBERS- Each of the other members of the Board shall receive
compensation at the rate prescribed for level IV of the Executive Schedule
under section 5315 of title 5, United States Code.
`(4) EXPENSES- Each member of the Board shall be reimbursed for necessary
travel, subsistence, and other expenses in the discharge of the official
duties of the member without regard to other laws with respect to allowance
for travel and subsistence of officers and employees of the United States.'.
(b) CONFORMING AMENDMENTS-
(1) CHAIRPERSON- Section 5314 of title 5, United States Code, is amended
by adding at the end the following new item:
`Chairperson, Board of Directors of the Farm Credit System Insurance
Corporation.'.
(2) MEMBERS- Section 5315 of such title is amended by adding at the end
the following new item:
`Members, Board of Directors of the Farm Credit System Insurance
Corporation.'.
(c) EFFECTIVE DATE-
(1) IN GENERAL- The amendments made by this section shall become effective
on January 1, 1996.
(2) TRANSITIONAL PROVISION- The Board of Directors of the Farm Credit System
Insurance Corporation as established by section 5.53 of the Farm Credit Act
of 1971 (12 U.S.C. 2277a-2) (as it existed before the amendments made by
subsection (a) of this section) shall continue in existence and continue
to manage the Farm Credit System Insurance Corporation until at least two
members are appointed by the President, by and with the advice and consent
of the Senate, to the new Board established by section 5.53 of such Act
(as amended by subsection (a) of this section).

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(a) IN GENERAL- Section 5.58(2) (12 U.S.C. 2277a-7(2)) is amended by adding
at the end the following new sentence: `The Corporation shall succeed to
the rights of the Farm Credit System Assistance Board under agreements
between the Farm Credit System Assistance Board and System institutions
certifying the institutions as eligible to issue preferred stock pursuant
to title VI on the termination of the Assistance Board on the date provided
in section 6.12.'.
(b) CONFORMING AMENDMENTS- Section 5.35(4) (12 U.S.C. 2271(4)) is amended--
(1) by striking `and' at the end of subparagraph (A);
(2) by striking the period at the end of subparagraph (B) and inserting
`; and'; and
(3) by adding at the end the following new subparagraph:
`(C) after December 31, 1992, mean any significant noncompliance by a
System institution (as determined by the Farm Credit Administration, in
consultation with the Farm Credit System Insurance Corporation) with any
term or condition imposed on the institution by the Farm Credit System
Assistance Board under section 6.6 or by the Farm Credit System Insurance
Corporation under section 5.61.'.

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Section 5.59(a) (12 U.S.C. 2277a-8(a)) is amended by adding at the end
the following new paragraph:
`(5) USE OF FARM CREDIT ADMINISTRATION PERSONNEL- To the extent practicable,
the Corporation shall use the personnel and resources of the Farm Credit
Administration to minimize duplication of effort and to reduce costs.'.

043bbb4e50a3760a2c85c9e5c5c108ac992112ce2aa4e0e1ca3ba48ab0903418

CAPITAL, SUPPLEMENTAL PREMIUMS, AND CONSOLIDATION.
(a) IN GENERAL- The Comptroller General of the United States shall
investigate, review, and evaluate the feasibility and appropriateness,
and report to the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of the Senate,
on the advantages and disadvantages of providing the Farm Credit System
Insurance Corporation with--
(1) the authority to directly or indirectly assess associations to ensure
that all System capital is available to prevent losses to investors,
including a study of--
(A) the effects of direct assessments by the Insurance Corporation on
associations, including interest rate charges to borrowers;
(B) the effects of requiring that banks pass along the cost of insurance
premiums to owner associations and other financing institutions having a
discount relationship with the bank;
(C) the effects of requiring owner associations to purchase stock in the
district bank, if needed, to prevent a bank from having to return to the
Insurance Corporation for financial assistance once the assistance has
been given;
(D) the effects of the purchase of stock from funds of the association
(through funds obtained from other than the district bank) or allowing the
bank to increase the direct line of credit to the association in order to
fund the purchase; and
(E) the effect that authorizing the Insurance Corporation to assess the
association could have on the association's incentives for building capital;
(2) the authority to collect supplemental insurance premiums under certain
circumstances, including a study of--
(A) the possibility of the Insurance Fund being depleted more rapidly than
it could be replenished under the current premium structure;
(B) the effects of the depletion under alternate economic scenarios and
the probability of the occurrence of each of those scenarios;
(C) the effects on capital accumulation and interest rates of levying a
supplemental premium; and
(D) limitations on any authority to levy supplemental premiums and the
underlying basis for the limitations; and
(3) the authority to establish an insurance premium rate structure that
would take into account, on an institution-by-institution basis, asset
quality risk, interest rate risk, earnings, and capital.
(b) REPORT ON CONSOLIDATION-
(1) IN GENERAL- The Comptroller General of the United States shall evaluate
and report to the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of the Senate on
whether there are likely to be benefits to farmer and rancher borrowers
of the Farm Credit System institutions of merging the 10 district Farm
Credit Banks (and the Federal Intermediate Credit Bank of Jackson) into
fewer regional Farm Credit Banks.
(2) FACTORS- In preparing the report, the Comptroller General shall
consider--
(A) the potential reduction in services to farmers and ranchers;
(B) the potential benefits of jointly providing services to farmers and
ranchers among these proposed regional districts;
(C) any economy of scale effects on a district-by-district basis;
(D) the potential impact on the cooperative nature of the Farm Credit System;
(E) the potential impact on bank and association relationships; and
(F) the potential impact on System-wide bond issuances.
(c) POTENTIAL SAVINGS- The Comptroller General of the United States shall
evaluate and report to the appropriate committees of Congress on the
potential savings to the Farm Credit System and its shareholders that
might occur if System institutions and the Farm Credit Administration
were required to comply with General Services Administration standards
for office space, furniture, and equipment.
(d) DEADLINE- The reports required under this section shall be provided
to Congress not later than 12 months after the date of enactment of this Act.

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Section 6.9(e)(3) (12 U.S.C. 2278a-9(e)(3)) is amended--
(1) by striking subparagraph (C) and inserting the following new
subparagraph:
`(C) PAYMENT OF PRINCIPAL-
`(i) IN GENERAL- After the end of the 15-year period beginning on the date
of the issuance of any obligation issued to carry out this subsection,
the banks operating under this Act shall pay to the Financial Assistance
Corporation, on demand, an amount equal to the outstanding principal of
the obligation. Each bank shall pay a proportion of the principal equal to--
`(I) the average accruing loan volume of the bank for the preceding 15
years; divided by
`(II) the average accruing loan volume of all banks of the System for the
same period.
`(ii) BANKS LEAVING SYSTEM- Any bank leaving the Farm Credit System
pursuant to section 7.10 shall be required, under regulations of the Farm
Credit Administration, to pay to the Financial Assistance Corporation the
estimated present value of the payment required under this subparagraph
had the bank remained in the System.
`(iii) BANKS UNDERGOING LIQUIDATION- With respect to any bank undergoing
liquidation under this Act, a liability to the Financial Assistance
Corporation in the amount of the payment required under this subparagraph
(calculated as if the bank had left the System on the date it was placed
in liquidation) shall be recognized as a claim in favor of the Financial
Assistance Corporation against the estate of the bank.
`(iv) OBLIGATIONS OF OTHER BANKS- The obligations of other banks shall not
be reduced in anticipation of any recoveries under this subparagraph from
banks leaving the System or in liquidation, but the Financial Assistance
Corporation shall apply the recoveries, when received, and all earnings
on the recoveries, to reduce the other banks' payment obligations, or,
to the extent the recoveries are received after the other banks have met
their entire payment obligation, shall refund the recoveries, when received,
to the other banks in proportion to the other banks' payments.';
(2) by redesignating subparagraph (D) as subparagraph (E);
(3) by inserting after subparagraph (C) the following new subparagraph:
`(D) ANNUAL PAYMENTS-
`(i) IN GENERAL- In order to provide for the orderly funding and discharge
over time of the obligation of each System bank to the Financial Assistance
Corporation under subparagraph (C), each System bank shall enter into or
continue in effect an agreement with the Financial Assistance Corporation
under which the bank will make annual annuity-type payments to the Financial
Assistance Corporation, beginning no later than December 31, 1992 (except
for any bank that did not meet its interim capital requirement on December
31, 1990, in which case the bank shall begin making the payments no later
than December 31, 1993), in amounts designed to accumulate, in total,
including earnings on the amounts, to 90 percent of the bank's ultimate
obligation. The Financial Assistance Corporation shall partially discharge
the bank from its obligation under subparagraph (C) to the extent of each
such payment and the earnings on the payment as earned.
`(ii) CAPITAL REQUIREMENTS- The agreement shall not require payments to be
made to the extent that making a particular payment or part of a payment
would cause the bank to fail to satisfy applicable regulatory permanent
capital requirements, but shall provide for recalculation of subsequent
payments accordingly.
`(iii) INVESTMENT; AVAILABILITY- The funds received by the Financial
Assistance Corporation pursuant to the agreements shall be invested in
eligible investments as defined in section 6.25(a)(1). The funds and the
earnings on the funds shall be available only for the payment of the
principal of the bonds issued by the Financial Assistance Corporation
under this subsection.'; and
(4) in subparagraph (E) (as redesignated by paragraph (2)), by inserting
before the period at the end the following: `, nor shall the obligation
to make future annuity payments to the Financial Assistance Corporation
under subparagraph (D) be considered a liability of any System bank'.

033e1e176e5d5e64bd3eab61e34c40b4a9fbcb38a3abcbd8570ac528377e6546

TITLE III

-REPAYMENT OF FARM CREDIT SYSTEM DEBT OBLIGATIONS

Subparagraph (B) of section 6.26(d)(1) (12 U.S.C. 2278b-6(d)(1)(B)) is
amended to read as follows:
`(B) PAYMENTS BY INSTITUTIONS-
`(i) IN GENERAL- Except as provided in subparagraph (C), in order to enable
the Financial Assistance Corporation to repay the obligation referred to
in subparagraph (A), each institution that issued preferred stock under
section 6.27(a) with respect to the obligation (or the successor to the
institution) shall pay to the Financial Assistance Corporation, before
the maturity date of the obligation, an amount equal to the par value of
the stock outstanding for the institution.
`(ii) ANNUAL APPROPRIATION- Except as provided in clause (iii), each
year beginning in 1992, as soon as practicable following the end of the
prior year, each such institution (except institutions in receivership
and institutions that have previously redeemed their preferred stock)
shall appropriate from its earnings in the prior year to an appropriated
unallocated surplus account with respect to preferred stock, the sum of--
`(I) the greater of--
`(aa) such amount as the institution may be required to appropriate under
any assistance agreement the institution has with the Farm Credit System
Assistance Board or the Farm Credit System Insurance Corporation; or
`(bb) the amount that, if appropriated to the account in equal amounts in
each year thereafter until the maturity of the obligation referred to in
subparagraph (A), would cause the amount in the account to equal the par
value of the preferred stock issued by the institution with respect to
the obligation; plus
`(II) any amount that had been appropriated to the account in a previous
year but had thereafter been offset by losses.
`(iii) LIMITATION- An annual appropriation shall not be made to the
extent that the appropriation would exceed the institution's net income
(as determined pursuant to generally accepted accounting principles)
in that year or to the extent that the appropriation would cause the
institution's preferred stock to be impaired.
`(iv) USE- The amount in the appropriated unallocated surplus account shall
be unavailable to pay dividends or other allocations or distributions to
shareholders or holders of participation certificates. The account shall be
senior to all other unallocated surplus accounts but junior to all preferred
and common stock for purposes of the application of operating losses.
`(v) PREFERRED STOCK- The appropriations of surplus by an institution shall
not affect the treatment of its preferred stock (and of the appropriated
unallocated surplus) as equity for purposes of regulatory permanent capital
requirements.'.

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Subparagraph (C) of section 6.26(d)(1) (12 U.S.C. 2278b-6(d)(1)(C)) is
amended to read as follows:
`(C) SYSTEMWIDE REPAYMENT-
`(i) IN GENERAL- In order to enable the Financial Assistance Corporation to
repay the obligations issued to provide assistance under subsections (c) and
(e) of section 410 of the Agricultural Credit Act of 1987 (12 U.S.C. 2011
note) and section 4.9A(c) of this Act, or issued to provide funds to cover
the expenses of the Assistance Board or the Financial Assistance Corporation
under sections 6.7(a) and 6.24, respectively, of this Act, each System bank
shall pay to the Financial Assistance Corporation a proportion, as calculated
by the Financial Assistance Corporation, of the obligation equal to--
`(I) the average accruing retail loan volume of the bank and its affiliated
associations for the preceding 15 years; divided by
`(II) the average accruing retail loan volume of all such banks and their
affiliated associations for the same period.
`(ii) EXPENSE ITEM- The annual increase in the present value of the estimated
obligation of each bank to the Financial Assistance Corporation under this
subparagraph shall be recorded each year as an expense item, in accordance
with generally accepted accounting principles, on the books of the bank.
`(iii) PASS THROUGH- A bank may (and, to the extent necessary to satisfy
its obligations, shall) pass on (either directly, or indirectly through
loan pricing or otherwise) all or part of the amount necessary to satisfy
the payment requirement to its affiliated direct lender associations based
on proportionate average accruing retail loan volumes for the preceding
15 years, except that the bank shall remain primarily liable for the amount.
`(iv) BANKS LEAVING SYSTEM- Any bank leaving the Farm Credit System
pursuant to section 7.10 shall be required, under regulations of the Farm
Credit Administration, to pay to the Financial Assistance Corporation the
estimated present value of the payment required under this subparagraph had
the bank remained in the System. A liability to the Financial Assistance
Corporation in this amount (calculated as if the bank had left the System
on the date it was placed in liquidation) shall be recognized as a claim
in favor of the Financial Assistance Corporation against the estate of
any bank undergoing liquidation. The obligations of other banks shall not
be reduced in anticipation of any such recoveries from banks leaving the
System or in liquidation, but the Financial Assistance Corporation shall
apply the recoveries, when received, and all earnings on the recoveries,
to reduce the other banks' payment obligations, or, to the extent the
recoveries are received after the other banks have met their entire payment
obligation, shall refund the recoveries, when received, to the other banks
in proportion to the other banks' payments.
`(v) ASSOCIATIONS TERMINATING SYSTEM STATUS OR IN LIQUIDATION- Any
association leaving the Farm Credit System pursuant to section 7.10 shall
be required, under regulations of the Farm Credit Administration, to pay
to its supervising bank a share, based on the association's retail loan
volume relative to the retail loan volume of the bank and its affiliated
associations had the association remained in the System, of the present
value of the future payment obligation of its supervising bank. A liability
to the bank in this amount (calculated as if the association had left
the System on the date it was placed in liquidation) shall be recognized
as a claim in favor of the bank against the estate of any association
undergoing liquidation.'.

68fa3ed6672737b895e626fbcf9d96eadfe9a4f66c76ec7e8d22aea9e250ba7d

(a) IN GENERAL- Paragraph (5) of section 6.26(c) (12 U.S.C. 2278b-6(c)(5))
is amended to read as follows:
`(5) Repayment of treasury-paid interest-
`(A) IN GENERAL- On the maturity date of the last-maturing debt obligation
issued under subsection (a), the Financial Assistance Corporation shall
repay to the Secretary of the Treasury the total amount of any annual
interest charges on the debt obligations that Farm Credit System institutions
(other than the Financial Assistance Corporation) have not previously paid,
and the Financial Assistance Corporation shall not be required to pay any
additional interest charges on the payments.
`(B) ASSESSMENT- In order to provide for the orderly funding by the banks of
the System of the repayment by the Financial Assistance Corporation to the
Secretary of the Treasury, the Financial Assistance Corporation shall assess
each System bank, on or about December 31 of each year beginning in 1992, and
each System bank shall promptly pay to the Financial Assistance Corporation,
an annual annuity type payment in an amount designed to accumulate, in total,
including earnings thereon, the amount of the bank's ultimate obligation
(as determined by the Corporation on a fair and equitable basis), and no
greater than .0006 nor less than .0004 times the bank's and its affiliated
associations' average accruing retail loan volume for the preceding year,
subject to--
`(i) upward or downward adjustment, as appropriate, by the Financial
Assistance Corporation during each of the last 5 years prior to the date
the Financial Assistance Corporation is obligated to make the repayment,
in order to ensure that the Financial Assistance Corporation will have
the amount of funds needed to make the repayment on the due date; and
`(ii) reduction or termination in any year when the funds paid to the
Financial Assistance Corporation, including any anticipated future earnings
on the funds, are sufficient to make the repayment on the due date.
`(C) INVESTMENT OF FUNDS- The Financial Assistance Corporation shall invest
funds derived from the investment in eligible investments as defined
in section 6.25(a)(1). The funds and the earnings on the funds shall be
available only for the repayment to the Secretary of the Treasury provided
for in subparagraph (A).
`(D) PASS THROUGH- A bank may (and, to the extent necessary to satisfy its
obligations, shall) pass on (either directly, or indirectly through loan
pricing or otherwise) all or part of the assessments to its affiliated
direct lender associations based on proportionate average accruing retail
loan volumes for the preceding year, but the bank shall remain primarily
liable for the amounts.
`(E) LIABILITY-
`(i) BANKS TERMINATING SYSTEM STATUS OR IN LIQUIDATION- Any bank terminating
System status pursuant to section 7.10 shall be required, under regulations
of the Farm Credit Administration, to pay to the Financial Assistance
Corporation the estimated present value of all future such assessments
against the bank had the bank remained in the System. A liability to the
Financial Assistance Corporation in this amount (calculated as if the bank
had left the System on the date the bank was placed in liquidation) shall
be recognized as a claim in favor of the Financial Assistance Corporation
against the estate of any bank undergoing liquidation.
`(ii) NO ANTICIPATORY REDUCTIONS IN OTHER OBLIGATIONS- The obligations of
other banks shall not be reduced in anticipation of any recoveries under
this subparagraph from banks leaving the System or in liquidation.
`(iii) REFUND OF RECOVERIES- The Financial Assistance Corporation shall
apply the recoveries, when received, and all earnings on the recoveries,
to reduce the other banks' payment obligations, or, to the extent the
recoveries are received after the other banks have met their entire payment
obligation, shall refund the recoveries, when received, to the other banks
in proportion to the other banks' payments.
`(F) ASSOCIATIONS TERMINATING SYSTEM STATUS OR IN LIQUIDATION- Any
association terminating System status pursuant to section 7.10 shall be
required, under regulations of the Farm Credit Administration, to pay
to its supervising bank a share, based on the association's retail loan
volume relative to the retail loan volume of the bank and its affiliated
associations had the association remained in the System, of the estimated
present value of all future such assessments against the bank. A liability
to the bank in this amount (calculated as if the association had left
the System on the date it was placed in liquidation) shall be recognized
as a claim in favor of the bank against the estate of any association
undergoing liquidation.
`(G) CAPITAL REQUIREMENTS-
`(i) IN GENERAL- Until the date that is 5 years prior to the date on which
the Financial Assistance Corporation is required to repay the Secretary of
the Treasury pursuant to subparagraph (A), all assessments paid by banks
to the Financial Assistance Corporation pursuant to subparagraph (B),
and any part of the obligation to pay future assessments to the Financial
Assistance Corporation under subparagraph (B) that is recognized as an
expense on the books of any System bank or association, shall nonetheless
be included in the capital of the bank or association for purposes of
determining its compliance with regulatory capital requirements.
`(ii) DURING THE FINAL 5 YEARS PRIOR TO REPAYMENT- During the--
`(I) period beginning 5 years, and ending 4 years, prior to the date
on which the Financial Assistance Corporation is required to repay the
Secretary of the Treasury pursuant to subparagraph (A), 60 percent;
`(II) period beginning 4 years, and ending 3 years, prior to the date
on which the Financial Assistance Corporation is required to repay the
Secretary of the Treasury pursuant to subparagraph (A), 30 percent; and
`(III) period beginning 3 years prior to the date on which the Financial
Assistance Corporation is required to repay the Secretary of the Treasury
pursuant to subparagraph (A), 0 percent,
of all assessments paid by banks to the Financial Assistance Corporation
pursuant to subparagraph (B), and of any part of the obligation to pay future
assessments to the Financial Assistance Corporation under subparagraph (B) that
is recognized as an expense on the books of any System bank or association,
shall nonetheless be included in the capital of the bank or association for
purposes of determining its compliance with regulatory capital requirements.'.
(b) CONFORMING AMENDMENT- Section 6.28 (12 U.S.C. 2278b-8) is amended by
striking subsection (b) and redesignating subsection (c) as subsection (b).

380c81e78eda832f508691641ee82889feae8b156a0a85a874ff5e4617c127f0

Section 6.26 (12 U.S.C. 2278b-6) is amended--
(1) in subsection (c)--
(A) in the subparagraph heading of paragraph (2)(B), by striking
`INSTITUTIONS' and inserting `BANKS';
(B) by striking `institutions' each place it appears in paragraphs (2)(B),
(3), and (4) and inserting `banks'; and
(C) in paragraph (2), by striking subparagraphs (C) and (D) and inserting
the following new subparagraph:
`(C) ALLOCATION- During each year of the second 5-year period, each System
bank shall pay to the Financial Assistance Corporation a proportion, as
calculated by the Financial Assistance Corporation, of the interest due
from System banks under this paragraph equal to--
`(i) the amount of the average accruing retail loan volume of the bank
and its affiliated associations for the preceding year; divided by
`(ii) the total average accruing retail loan volume of all such banks and
their affiliated associations for the preceding year.';
(2) in subsection (d)(1)--
(A) by striking subparagraph (D); and
(B) by redesignating subparagraph (E) as subparagraph (D); and
(3) by adding at the end the following new subsection:
`(e) ADMINISTRATION-
`(1) DEFINITION OF RETAIL LOAN VOLUME- As used in this section, the
term `retail loan volume' means all loans (as defined in accordance with
generally accepted accounting principles) by a System bank or association,
excluding loans by such a bank or association to another System institution.
`(2) CALCULATION OF AVERAGE ANNUAL LOAN VOLUMES- For purposes of this
section and section 6.9, average annual loan volumes shall be calculated
using month-end balances.
`(3) EXCLUSION OF BANKS UNDERGOING LIQUIDATION- For purposes of this
section and section 6.9, the term `bank' shall not include a bank that
had entered liquidation prior to the date of enactment of this subsection.'.

2b3feb9215d77ed47792ac297c5ca6474de8ccfd1ddb2e7f4e6fdd2f9b8ab45b

Section 6.26(d) (12 U.S.C. 2278b-6(d)) is amended--
(1) in paragraph (3)--
(A) in subparagraph (A)--
(i) by striking the heading and inserting the following: `CERTAIN PRINCIPAL
AND INTEREST OBLIGATIONS- ';
(ii) in clause (i)--
(I) by inserting after `subsection (a),' the following: `on the payment
of principal or interest due under subparagraphs (B) and (C) of section
6.9(e)(3), on the payment of principal due under paragraph (1)(C), or on
the payment of an assessment due under subsection (c)(5)(B),';
(II) by striking `of the interest' both places it appears; and
(III) by striking `institution' each place it appears and inserting `bank';
(iii) in clause (ii)--
(I) by striking `of interest';
(II) by striking `institution' and inserting `bank'; and
(III) by striking `such uncollected interest' and inserting `any uncollected
amount';
(iv) in clause (iii), by striking `added' and all that follows through
the period at the end and inserting `allocated to other System banks in
accordance with the allocation mechanism applicable under this Act to the
particular defaulted obligation.';
(B) in subparagraph (B), by striking the subparagraph heading and inserting
the following new heading: `PRINCIPAL OF BONDS ISSUED TO FUND PURCHASE OF
PREFERRED STOCK- '; and
(C) in subparagraph (C)--
(i) in the heading, by striking `INSTITUTIONS' and inserting `BANKS';
(ii) by striking `institution' and inserting `bank';
(iii) by striking `institutions' both places it appears and inserting
`banks'; and
(iv) by striking `the amount of any interest' and inserting `any amounts';
and
(2) in paragraph (4)--
(A) in subparagraph (A), by inserting `or section 6.9(e)(3)(A)' after
`subsection (a)';
(B) in subparagraph (B)--
(i) in clause (i)--
(I) by striking the clause heading and inserting the following new heading:
`CERTAIN PRINCIPAL AND INTEREST OBLIGATIONS- ';
(II) by inserting after `subsection (c),' the following: `on the payment
of principal or interest due under subparagraphs (B) and (C) of section
6.9(e)(3), on the payment of principal due under paragraph (1)(C), or on
the payment of an assessment due under subsection (c)(5)(B),'; and
(III) by striking `institution' each place it appears and inserting
`bank'; and
(ii) in clause (ii), by striking the clause heading and inserting the
following new heading: `PRINCIPAL OF BONDS ISSUED TO FUND PURCHASE OF
PREFERRED STOCK- '.

adbc3ee5def2fb17c5b5aaf72ea0e7ada22ae3410b9c8b57117d4a11698bbc63

(a) PURPOSE- Section 6.21 (12 U.S.C. 2278b-1) is amended by inserting
before the period at the end the following: `and to assist, pursuant to
section 6.9(e) and subsections (c) through (g) of section 6.26, in the
repayment by System institutions to those persons who provided funds in
connection with the program'.
(b) TERMINATION- Section 6.31(a) (12 U.S.C. 2278b-11(a)) is amended
by striking `terminate on' and inserting the following: `terminate on
the complete discharge by the Financial Assistance Corporation of its
responsibilities under section 6.9(e) and subsections (c) through (g)
of section 6.26 with regard to repayments by System institutions, but in
no event later than 2 years following'.

6407aa4f7589fa6d9df0c6555c96e1fb4cdc2fd3cc7b8a3d96fa03a9553d8ef1

(a) TECHNICAL AMENDMENT TO THE FOOD, AGRICULTURE, CONSERVATION, AND TRADE ACT
AMENDMENTS OF 1991- Section 204(3) of the Food, Agriculture, Conservation,
and Trade Act Amendments of 1991 (P.L. 102-237; 105 Stat. 1855) is amended
by striking `in section 1221(1)(D) (16 U.S.C. 3821(1)(D))' and inserting
`in section 1221(a)(1)(D) (16 U.S.C. 3821(a)(1)(D))'.
(b) TECHNICAL AMENDMENTS TO THE FARM CREDIT ACT OF 1971-
(1) Section 8.3(c)(13) of the Farm Credit Act of 1971 (12
U.S.C. 2279aa-3(c)(13)) is amended by striking `8.11(g)' and inserting
`8.11(e)'.
(2) Section 8.11(a)(1)(B)(ii) of such Act (12 U.S.C. 2279aa-11(a)(1)(B)(ii))
is amended by striking `the date of enactment of this section' and inserting
`December 13, 1991'.
(3) Section 8.32 of such Act (12 U.S.C. 2279bb-1) is amended--
(A) in each of subsections (a), (b)(1)(D), and (b)(2), by striking `the
date of the enactment of this section' each place the term appears and
inserting `December 13, 1991'; and
(B) in subsection (b)(1)(E), by striking `the date of the enactment of
such Act' and inserting `December 13, 1991'.

afe6331279db4c67024fe7f5c8fde2f50f92322dd9600a8e040c4f42829029fc

185991b6141fa5b7719001736bd2082919c8eb8d3a3854369486c61a34a20009

Subsection (b) of section 2.3 (12 U.S.C. 2074(b)) is amended to read
as follows:
`(b) APPLICATION OF EARNINGS- At the end of each fiscal year, each
production credit association shall apply the amount of the earnings of
the association for the fiscal year in excess of the operating expenses
of the association (including provision for valuation reserves against
loan assets in accordance with generally accepted accounting principles)--
`(1) first, to the restoration of the impairment (if any) of capital; and
`(2) second, to the establishment and maintenance of the surplus accounts,
the minimum aggregate amount of which shall be prescribed by the Farm
Credit Bank.'.

8751d5b62aa074e627b68affa1e73d21471013b3b4600cb3692aa33dce6b7899

Section 3.1(11) (12 U.S.C. 2122(11)) is amended--
(1) by inserting `(A)' after `(11)'; and
(2) by adding at the end the following new subparagraph:
`(B)(i) Participate in any loan of a type otherwise authorized under
this title that is made to a similar entity by any institution in the
business of extending credit, including purchases of participations in
loans to finance international trade transactions involving the sale of
agricultural commodities or the products thereof, except that--
`(I) a bank for cooperatives may not participate in a loan--
`(aa) if the participation would cause the total amount of all loan
participations by the bank under this subparagraph involving a single
credit risk to exceed 10 percent of the bank's total capital; or
`(bb) if the participation by the bank will itself equal or exceed 50 percent
of the principal of the loan or, when taken together with participations
in the loan by the other banks for cooperatives under this subparagraph,
will cause the cumulative amount of the participations by all banks for
cooperatives in the loan to equal or exceed 50 percent of the principal
of the loan;
`(II) a bank for cooperatives may not participate in a loan to a similar
entity under this subparagraph if the similar entity has a loan or loan
commitment outstanding with a Farm Credit Bank or an association chartered
under this Act, unless agreed to by the Bank or association; and
`(III) the cumulative amount of participations that a bank for cooperatives
may have outstanding under this subparagraph at any time may not exceed
15 percent of the bank's total assets.
`(ii) As used in this subparagraph, the term `similar entity' means
an entity that, while not eligible for a loan under section 3.8, is
functionally similar to an entity eligible for a loan under section 3.8
in that it derives a majority of its income from, or has a majority of
its assets invested in, the conduct of activities functionally similar to
those conducted by the entity.
`(iii) With respect to similar entities that are eligible to borrow from
a Farm Credit Bank or association under title I or II, the authority of
a bank for cooperatives to participate in loans to the entities under
this subparagraph shall be subject to the prior approval of the Farm
Credit Bank or Banks in whose chartered territory the entity is eligible
to borrow. The approval may be granted on an annual basis and under such
terms and conditions as may be agreed on between the bank for cooperatives
and the Farm Credit Bank or Banks that serve the territory.'.

7356649d1f296e43dedfd8ba1d982a991d8cf2497c92e8e482c21c1cf6949ab7

Section 3.2(a) of the Farm Credit Act of 1971 (12 U.S.C. 2123(a))
is amended--
(1) by inserting `(1)' after `(a)'; and
(2) by adding at the end the following new paragraph:
`(2)(A) If approved by the stockholders through a bylaw amendment,
the nomination and election of one member from a bank for cooperatives
(other than the National Bank for Cooperatives) shall be carried out with
each voting stockholder of a bank for cooperatives having one vote, plus
a number of votes (or fractional part thereof) equal to--
`(i) the number of stockholders eligible to vote; multiplied by
`(ii) the percentage (or fractional part thereof) of the total equity
interest (including allocated, but not unallocated, surplus and reserves)
in the bank of all stockholders held by the individual voting stockholder
at the close of the immediately preceding fiscal year of the bank.
`(B) The total number of votes under this paragraph shall be the number
of voting stockholders of a bank for cooperatives multiplied by two.'.

3e63a1cc198d20f94aea6ebcb4e4fac5fa014240253cd5e94f4cb8569542b549

The first sentence of section 3.7(a) (12 U.S.C. 2128(a)) is amended by
inserting `at any time (whether or not they have a loan from the bank
outstanding)' after `technical and financial assistance'.

b784127065869353fffda67195108b1089b1f7d21c8576e21e5b486a187f5bd1

COOPERATIVES.
Section 3.7(f) (12 U.S.C. 2128(f)) is amended--
(1) by striking `the installation, expansion, or improvement of' and
inserting `installing, maintaining, expanding, improving, or operating'; and
(2) by striking `to extend' and inserting `extending'.

6712062b82fffbb4dace756e59abbed61c63c44e46f9c9c1343c191081ebf210

Section 3.8(b)(1) (12 U.S.C. 2129(b)(1)) is amended by adding at the end
the following new subparagraph:
`(E) Any creditworthy private entity that satisfies the requirements for
a service cooperative under paragraphs (1), (2), and (4) of subsection
(a) and subsidiaries of the entity, if the entity is organized to benefit
agriculture in furtherance of the welfare of its farmer-members and is
operated on a not-for-profit basis.'.

027e4997fdf61f2577a2a7f343c2f1e908309f7539ffea6cf277f7537e594eaa

Paragraph (2) of section 4.9(d) (12 U.S.C. 2160(d)(2)) is amended to read
as follows:
`(2) NON-VOTING REPRESENTATIVES-
`(A) ASSISTANCE BOARD- During the period in which the Assistance Board
is in existence, the board of directors of the Assistance Board shall
designate one of its directors to serve as a non-voting representative to
the board of directors of the Corporation.
`(B) MEETINGS- The person designated by the Assistance Board under
subparagraph (A) may attend and participate in all deliberations of the
board of directors of the Corporation.
`(C) TERMINATION OF ASSISTANCE BOARD- After termination of the Assistance
Board, neither the Assistance Board nor its successor, the Farm Credit
System Insurance Corporation, shall have any representation on the board
of directors of the Corporation.'.

dc8da7a0c0e4536b6ab3fdefd4cd53dda7bbace5d8fa062ae8c62b9cca034e5a

OF INDEBTEDNESS.
Section 4.16 (12 U.S.C. 2204) is repealed.

f3d68a2b56263c11a73e094a95cb3ba487071c641e3729ae67087db8fd2cde7b

Section 4.21 (12 U.S.C. 2209) is amended to read as follows:
`SEC. 4.21. COMPENSATION OF BANK DIRECTORS.
`(a) IN GENERAL- The Farm Credit Administration shall monitor the
compensation of members of the board of directors of a System bank received
as compensation for serving as a director of the bank to ensure that the
amount of the compensation does not exceed a level of $20,000 per year,
as adjusted to reflect changes in the Consumer Price Index for all urban
consumers published by the Bureau of Labor Statistics, unless the Farm
Credit Administration determines that such level adversely affects the
safety and soundness of the bank.
`(b) WAIVER- The Farm Credit Administration may waive the limitation
prescribed in subsection (a) under exceptional circumstances, as
determined in accordance with regulations promulgated by the Farm Credit
Administration.'.

7be22b97bdaf8711cbb8af883d605cd9ae34368ddbe26293ca92c3ff772badc1

EXPENSES.
Section 5.15(b)(1) (12 U.S.C. 2250(b)(1)) is amended--
(1) by inserting `, for purposes of sequestration,' after `regard'; and
(2) by striking `or any other law'.

69fe086bba74e0e37d63139c160db662a5dce6a9b635787d63dfd2a14986408c

Section 5.17(a) (12 U.S.C. 2252(a)) is amended by adding at the end the
following new paragraphs:
`(13)(A) Subject to subparagraph (B), the Farm Credit Administration may
approve an amendment to the charter of any institution of the Farm Credit
System operating under title I or II, which would authorize the institution
to exercise lending authority in any territory--
`(i) in the geographic area served by an association that was reassigned
pursuant to section 433 of the Agricultural Credit Act of 1987 (12
U.S.C. 2071 note) (where the geographic area was a part of the association's
territory as of the date of the reassignment); and
`(ii) in which the charter of an institution that is not seeking the
charter amendment authorizes the institution to exercise the type of
lending authority that is the subject of the charter request.
`(B) The Farm Credit Administration may approve a charter amendment under
subparagraph (A) only on the approval of--
`(i) the respective boards of directors of the associations that, if the
charter request is approved, would exercise like lending authority in any
of the territory that is the subject of the charter request;
`(ii) a majority of the stockholders of each association described in clause
(i) voting, in person or by proxy, at a duly authorized stockholders'
meeting; and
`(iii) the respective boards of directors of the Farm Credit Banks that,
if the charter request is approved, would exercise, either directly or
through associations, like lending authority in any of the territory
described in subparagraph (A)(i).
`(14)(A) Subject to subparagraph (B), the Farm Credit Administration may
approve a request to charter an association of the Farm Credit System to
operate under title II where the proposed charter--
`(i) will include any of the geographic area included in the territory
served by an association that was reassigned pursuant to section 433
of the Agricultural Credit Act of 1987 (12 U.S.C. 2071 note) (where the
geographic area was a part of the association's territory as of the date
of the reassignment); and
`(ii) will authorize the association to exercise lending authority in any
territory in the geographic area in which the charter of an association
that is not requesting the charter authorizes the association to exercise
the type of lending authority that is the subject of the charter  request.
`(B) The Farm Credit Administration may approve a charter request under
subparagraph (A) only on the approval of--
`(i) the respective boards of directors of the associations that, if the
charter request is approved, would exercise like lending authority in any
of the territory that is the subject of the charter request;
`(ii) a majority vote of the stockholders (if any) of each association
described in clause (i) voting, in person or by proxy, at a duly authorized
stockholder's meeting; and
`(iii) the respective boards of directors of the Farm Credit Banks that,
if the charter request is approved, would exercise, either directly or
through associations, like lending authority in any of the territory
described in subparagraph (A)(i).'.

19fd90f3a54ab947dd72ea2ce8bd6e5ce4a122ba47258205bfbe92d8d0123098

The third sentence of section 5.19(a) (12 U.S.C. 2254(a)) is amended by
striking `shall include' and inserting `may include, if appropriate'.

86241e08a5c9030303d4449aa8cbe4e38ba35c5395793928bf5df3a31e125411

(a) AUTHORITY OF FARM CREDIT SYSTEM INSURANCE CORPORATION- Section 5.59
(12 U.S.C. 2277a-8) is amended--
(1) in the section heading, by striking `insured system banks' and inserting
`system institutions'; and
(2) by striking subsection (b) and inserting the following new subsection:
`(b) EXAMINATION OF SYSTEM INSTITUTIONS-
`(1) EXAMINATION AUTHORITY-
`(A) IN GENERAL- If the Board of Directors considers it necessary to examine
an insured System bank, a production credit association, an association
making direct loans under the authority provided under section 7.6, or
any System institution in receivership, the Board may, using Farm Credit
Administration examiners, conduct the examination using reports and other
information on the System institution prepared or held by the Farm Credit
Administration.
`(B) REQUEST FOR ADDITIONAL EXAMINATION OR OTHER INFORMATION- If the Board
determines that such reports or information are not adequate to enable the
Corporation to carry out the duties of the Corporation under this subsection,
the Board shall request the Farm Credit Administration to examine or to
obtain other information from or about the System institution and provide to
the Corporation the resulting examination report or such other information.
`(2) APPOINTMENT OF EXAMINERS- If the Farm Credit Administration informs the
Corporation that the Farm Credit Administration is unable to comply with a
request made under paragraph (1)(B) with respect to a System institution,
the Board may appoint examiners to examine the institution.
`(3) POWERS AND REPORT- Each examiner appointed under paragraph (2) shall
make such examination of the affairs of the System institution as the Board
may direct, and shall make a full and detailed report of the examination
to the Corporation.
`(4) APPOINTMENT OF CLAIM AGENTS- The Board of Directors of the Corporation
shall appoint claim agents who may investigate and examine all claims for
insured obligations.'.
(b) DUTIES OF THE FARM CREDIT ADMINISTRATION- Section 5.19 (12 U.S.C. 2254)
is amended by adding at the end the following new subsection:
`(d) On receipt of a request made under section 5.59(b)(1)(B) with respect
to a System institution, the Farm Credit Administration shall--
`(1) furnish for the confidential use of the Farm Credit System Insurance
Corporation reports of examination of the institution and other reports
or information on the institution; and
`(2)(A) examine, or obtain other information on, the institution and furnish
for the confidential use of the Farm Credit System Insurance Corporation
the report of the examination and such other information; or
`(B) if the Farm Credit Administration Board determines that compliance
with the request would substantially impair the ability of the Farm Credit
Administration to carry out the other duties and responsibilities of the
Farm Credit Administration under this Act, notify the Board of Directors
of the Farm Credit System Insurance Corporation that the Farm Credit
Administration will be unable to comply with the request.'.

ad71df419c3080cd04c6bc6146bb8a0a9a3aff93791cda6458405b5873b541bf

OFFICERS, AND EMPLOYEES OF FARM CREDIT SYSTEM INSTITUTIONS.
(a) FINDINGS- Congress finds that--
(1) the disclosure of the compensation paid to, loans made to, and
transactions made with a Farm Credit System institution by, directors
and senior officers of the institution provides the stockholders of the
institutions with information necessary to better manage the institutions,
provides the Farm Credit Administration with information necessary to
efficiently and effectively regulate the institutions, and enhances the
financial integrity of the Farm Credit System by making the information
available to potential investors;
(2) the reporting of potential conflicts of interest by directors, officers,
and employees of institutions of the Farm Credit System benefits the
stockholders of the institutions, helps to ensure the financial viability
of the institutions, provides information valuable to the Farm Credit
Administration in periodic examinations of the institutions, and therefore
enhances the safety and soundness of the Farm Credit System; and
(3) the directors, officers, or employees of some Farm Credit System
institutions may not be subject to the regulations of the Farm Credit
Administration requiring the disclosure of the financial information and
the reporting of the potential conflicts of interest.
(b) PURPOSE- It is the purpose of this section to ensure that the information
reported by the directors, officers, and employees of Farm Credit System
institutions under regulations of the Farm Credit Administration requiring
the disclosure of financial information and the reporting of potential
conflicts of interest--
(1) provides the stockholders of all Farm Credit System institutions
with information to assist the stockholders in making informed decisions
regarding the operation of the institutions;
(2) provides investors and potential investors with information necessary
to assist them in making investment decisions regarding Farm Credit System
obligations or institutions; and
(3) provides the Farm Credit Administration with information necessary
to allow the Farm Credit Administration to effectively and efficiently
examine and regulate all Farm Credit System institutions and thus enhance
the safety and soundness of the Farm Credit System.
(c) REVIEW- Not later than 120 days after the date of enactment of this
Act, the Farm Credit Administration shall complete a review of the current
regulations of the Farm Credit Administration regarding the disclosure
of financial information and the reporting of potential conflicts of
interest by the directors, officers, and employees of Farm Credit System
institutions. Consistent with the purpose of this section as provided in
subsection (b), the review shall address whether the regulations--
(1) are adequate to fulfill the purpose of this section and such other
purposes as the Farm Credit Administration determines to be consistent with
the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.), and other applicable
law, and to be otherwise necessary or appropriate;
(2) currently require the disclosure of financial information and the
reporting of potential conflicts of interest by the directors, officers,
and employees of all Farm Credit System institutions; and
(3) currently require the disclosure or reporting of the information by
all of the appropriate directors, officers, or employees of Farm Credit
System institutions.
(d) IMPLEMENTATION- Not later than 360 days after the date of enactment of
this Act, the Farm Credit Administration shall amend its current financial
disclosure and conflict of interest regulations as the Administration
determines necessary to carry out the purpose of this section and to address
any deficiencies in the regulations that the Farm Credit Administration
determines necessary pursuant to the review conducted under subsection (c).

b8217b5d1dfe3ffe218dc4c2dee0613f816969be3c93fd54aad5efc4cce5e9c4

(a) USE OF ACCOUNT- The Secretary of Agriculture shall use the account in
which funds appropriated under section 214 of the Emergency Food Assistance
Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) are credited or deposited,
or another account established for the use of the Secretary of Agriculture,
for the purpose of purchasing, processing and distributing additional
commodities for the emergency food assistance program established under
such Act (7 U.S.C. 612c note) as required by this section.
(b) USE OF RECEIPTS-
(1) IN GENERAL- Not later than 10 days after the date of enactment of this
Act, the Director of the Office of Management and Budget shall--
(A) calculate the estimated present value of the future receipts available
to the Federal Government, under procedures or definitions established in
the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.), as a result
of enactment of this Act and the amendments made by this Act; and
(B) advise the Secretary of Agriculture, the Committee on Agriculture of
the House of Representatives, and the Committee on Agriculture, Nutrition,
and Forestry of the Senate of the dollar amount of that value.
(2) CREDIT- Not later than 20 days after the date of enactment of this Act,
an amount equal to the dollar amount of that value shall be credited to,
or deposited in, the account referred to in subsection (a) by the Secretary
of the Treasury.
(c) REQUIRED PURCHASE OF COMMODITIES BY THE SECRETARY OF AGRICULTURE-
(1) IN GENERAL- The Secretary of Agriculture shall--
(A) use all of the funds provided to the Secretary under subsection (a) to
purchase, process, and distribute additional commodities for the emergency
food assistance program; and
(B) allot the additional commodities to States in accordance with the
application of the allocation formula established in section 214(f) of the
Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note)
to the total value of the additional commodities.
(2) TYPES AND VARIETIES- The additional commodities shall be of the types
and varieties required under section 214(d) of such Act.
(3) REALLOCATION- The additional commodities may be reallocated under
procedures established by the Secretary of Agriculture in accordance with
section 214(g) of such Act.
(d) ENTITLEMENT TO RECEIVE COMMODITIES- Each State shall be entitled to
receive during fiscal year 1993 its allotment of the additional commodities
purchased by the Secretary of Agriculture under this section.
(e) TERMINATION OF AUTHORITY- The authority provided to carry out this
section shall terminate on September 30, 1993.

9bd0f463f31742fb74fc585a1db47369a316f9e9c4d535e0b78fb3a5ebc96752

(a) CORRECTION OF REFERENCE TO SECTION 1236 OF THE FOOD SECURITY ACT OF 1985-
The matter under the heading `CONSTRUCTION AND ANADROMOUS FISH' of title
I of the Department of the Interior and Related Agencies Appropriations
Act, 1991 (Public Law 101-512; 104 Stat. 1918) is amended by striking
`title 16 U.S.C. section 3832(a)(6)' and inserting `section 1232(a)(6)
of the Food Security Act of 1985 (16 U.S.C. 3832(a)(6))'.
(b) SECTION 1245(b) OF THE FOOD SECURITY ACT OF 1985-
(1) CORRECTION- Section 1245(b) of the Food Security Act of 1985 (16
U.S.C. 3845(b)) is amended by striking `(A) through (G)' and inserting
`A through G'.
(2) EFFECTIVE DATE- The amendment made by paragraph (1) shall take effect
immediately after section 1443 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (Public Law 101-624; 104 Stat. 3602) took effect.
(c) SECTION 307(a)(6)(B) OF THE CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT-
(1) CORRECTION- Section 307(a)(6)(B) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1927(a)(6)(B)) is amended by striking clause
(ii), and by redesignating clauses (iii) through (viii) as clauses (ii)
through (vii), respectively.
(2) EFFECTIVE DATE- The amendments made by paragraph (1) of this subsection
shall take effect at the same time as the amendments made by section 501(a)
of the Food, Agriculture, Conservation, and Trade Act Amendments of 1991
(Public Law 102-237; 105 Stat. 1865) took effect.
(d) SECTION 310B(c) OF THE CONSOLIDATED FARM AND RURAL DEVELOPMENT
ACT- Section 310B(c) (7 U.S.C. 1932(c)) is amended by striking `business
enterprises,' and inserting `business enterprises or the creation, expansion,
and operation of rural distance learning networks or rural learning programs
that provide educational instruction or job training instruction related
to potential employment or job advancement to adult students,'.
(e) SECTION 310D(a) OF THE CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT-
(1) CORRECTION- Section 310D(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1934(a)) is amended by striking `304(d)(1)'
and inserting `304(a)(1)'.
(2) EFFECTIVE DATE- The amendment made by paragraph (1) of this subsection
shall take effect at the same time as the amendments made by section 501(a)
of the Food, Agriculture, Conservation, and Trade Act Amendments of 1991
(Public Law 102-237; 105 Stat. 1865) took effect.
(f) SECTION 312(a) OF THE CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT-
(1) REPLACEMENT OF UNEXECUTABLE AMENDMENT MADE BY THE FOOD, AGRICULTURE,
CONSERVATION, AND TRADE ACT OF 1990-
(A) CORRECTION- Subsection (b) of section 1818 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (Public Law 101-624; 104 Stat. 3830)
is amended to read as follows:
`(b) OPERATING LOAN PURPOSES- The first sentence of section 312(a)
(7 U.S.C. 1942(a)) is amended--
`(1) by striking `and' at the end of clause (11); and
`(2) by inserting `, and (13) borrower training under section 359' before
the period at the end.'.
(B) EFFECTIVE DATE- The amendment made by subparagraph (A) shall take
effect as if included in the Food, Agriculture, Conservation, and Trade
Act of 1990 at the time such Act became law.
(2) REPEAL OF UNEXECUTABLE AMENDMENT MADE BY THE FOOD, AGRICULTURE,
CONSERVATION, AND TRADE ACT AMENDMENTS OF 1991- Subsection (b) of section
501 of the Food, Agriculture, Conservation, and Trade Act Amendments of
1991 (Public Law 102-237; 105 Stat. 1866) is repealed. The Consolidated
Farm and Rural Development Act (7 U.S.C. 1921 et seq.) shall be applied
and administered as if such subsection had never become law.
(g) AMENDMENTS TO SECTION 331E OF THE CONSOLIDATED FARM AND RURAL
DEVELOPMENT ACT-
(1) CORRECTION- Section 331E of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1981e) is amended--
(A) in subsection (a), by striking `Disaster Relief Act of 1974' and
inserting `Robert T. Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5121 et seq.)'; and
(B) in subsection (b), by inserting `Robert T. Stafford' before `Disaster
Relief'.
(2) EFFECTIVE DATE- The amendments made by paragraph (1) of this subsection
shall take effect immediately after section 501(d) of the Food, Agriculture,
Conservation, and Trade Act Amendments of 1991 (Public Law 102-237; 105
Stat. 1866) took effect.
(h) SECTION 335(e)(1)(A)(i) OF THE CONSOLIDATED FARM AND RURAL DEVELOPMENT
ACT-
(1) CORRECTIONS TO AMENDMENT MADE BY THE FOOD, AGRICULTURE, CONSERVATION,
AND TRADE ACT AMENDMENTS OF 1991- Section 501(f)(1) of the Food, Agriculture,
Conservation, and Trade Act Amendments of 1991 (Public Law 102-237; 105
Stat. 1867) is amended--
(A) by inserting `the first place such term appears' before `and all that
follows'; and
(B) by striking `borrower-owner (as defined in subparagraph (F)' and
inserting `the borrower-owner (as defined in subparagraph (F))'.
(2) EFFECTIVE DATE- The amendments made by paragraph (1) of this subsection
shall take effect immediately after section 501(f) of the Food, Agriculture,
Conservation, and Trade Act of 1990 took effect.
(i) SECTION 352(a) OF THE CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT-
Section 352(a) of the Consolidated Farm and Rural Development Act (7
U.S.C. 2000(a)) is amended by redesignating the second paragraph (4)
as paragraph (5).
(j) SECTION 352(b)(2) OF THE CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT-
(1) CORRECTION- Section 352(b)(2) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2000(b)(2)) is amended by striking `borrower's'
and inserting `borrower-owner's'.
(2) EFFECTIVE DATE- The amendment made by paragraph (1) of this subsection
shall take effect at the same time as the amendments made by section 501(f)
of the Food, Agriculture, Conservation, and Trade Act Amendments of 1991
(Public Law 102-237; 105 Stat. 1867) took effect.
(k) SECTION 702(h)(2) OF THE FOOD, AGRICULTURE, CONSERVATION, AND TRADE
ACT AMENDMENTS OF 1991- Section 702(h)(2) of the Food, Agriculture,
Conservation, and Trade Act Amendments of 1991 (Public Law 102-237; 105
Stat. 1881) is amended by inserting `section' before `2388(h)(3)'.
(l) SECTION 306C(b)(1) OF THE CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT-
Section 306C(b)(1) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1926c(b)(1)) is amended by striking `or connecting such systems
to the residences of such individuals' and inserting `, connecting the
systems to the residences of the individuals, or installing plumbing and
fixtures within the residences of the individuals to facilitate the use
of the water supply and waste disposal systems'.
(m) SECTION 306C OF THE CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT- Section
306C of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926c)
is amended by adding at the end the following new subsection:
`(f) REGULATIONS- Not later than 30 days after the date of enactment of
this subsection, the Secretary shall issue interim final regulations,
with a request for public comments, implementing this section.'.
Passed the House of Representatives October 4, 1992.
Attest:
Clerk.
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1ce7180d6574c68ebe9618cbfcecff73f56a2388a45511d8f4fc3de61907e345

Farm Credit Banks and Associations Safety and Soundness Act of 1992

Other Sections

TITLE II

TITLE IV

TITLE V

TITLE I

TITLE III

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