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119th Congress

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119th Congress

Title 12 — Banks and Banking

Part A · Chapter 23 — Farm Credit System

§ 2132. Earnings and reserves; application of savings

Statutory text

(a)

Application of savings

At the end of each fiscal year, the net savings shall, under regulations prescribed by the Farm Credit Administration, continue to be applied on a cooperative basis with provision for sound, adequate capitalization to meet the changing financing needs of eligible cooperative borrowers and prudent corporate fiscal management, to the end that current year’s patrons carry their fair share of the capitalization, ultimate expenses, and reserves related to the year’s operations and the remaining net savings shall be distributed as patronage refunds as provided in subsection (b). Such regulations may provide for application of net savings to the restoration or maintenance of an allocated surplus account, reasonable additions to unallocated surplus, or to unallocated reserves after payment of operating expenses, and provide for allocations to patrons not qualified under title 26, or payment of such per centum of patronage refunds in cash, as the board may determine.

(b)

Patronage refunds

The net savings of each bank for cooperatives, after the earnings for the fiscal year have been applied in accordance with subsection (a) of this section shall be paid in stock, participation certificates, or cash, or in any of them, as determined by its board, as patronage refunds to borrowers to whom such refunds are payable who are borrowers of the fiscal year for which such patronage refunds are distributed. All patronage refunds shall be paid in proportion that the amount of interest and service fees on the loans to each borrower during the year bears to the interest and service fees on the loans of all borrowers during the year or on such other proportionate patronage basis as may be approved by the board of directors.

(c)

Loss carryover

In the event of a net loss in any fiscal year after providing for all operating expenses (including reasonable valuation reserves and losses in excess of any applicable reserves), such loss may be carried forward or carried back, if appropriate, or otherwise shall be absorbed by charges to unallocated reserve or surplus accounts established after ; charges to allocated contingency reserve account; charges to allocated surplus accounts; charges to other contingency reserve and surplus accounts; the impairment of voting stock; or the impairment of all other stock.

(d)

Charge of unrecognized costs or expenses to reserve, surplus, or patronage allocations

Notwithstanding any other provisions of this section any costs or expenses attributable to a prior year or years but not recognized in determining the net savings for such year or years may be charged to reserves or surplus of the bank or to patronage allocations for such years, as may be determined by the board of directors.

(e)

Payment of patronage refunds in cash

A bank for cooperatives may pay in cash such portion of its patronage refunds as will permit its taxable income to be determined without taking into account savings applied as allocated surplus, allocated contingency reserves, and patronage refunds under subsection (a) of this section.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. Farm Credit Act of 1971

    Pub. L. 92–181 title III § 3 · 85 Stat. 583

    Enacted · 12 U.S.C. § 2132

    Pub. L. 92–181, title III, § 3.11, Dec. 10, 1971, 85 Stat. 606

    Source evidence

    Code source credit
    Pub. L. 92–181, title III, § 3.11, Dec. 10, 1971, 85 Stat. 606

    Enacted provision · exact public law section
    (3) Make contracts.

  2. Farm Credit Act Amendments of 1980

    Pub. L. 96–592 § 308(1) · 94 Stat. 3437

    Struck · 12 U.S.C. § 2132(b)

    Pub. L. 96–592, § 308(1), struck out provisions relating to 25 per centum requirement for net savings

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 96–592, § 308(1), struck out provisions relating to 25 per centum requirement for net savings.

    Enacted provision · exact public law section
    (1) striking out in the second sentence of subsection (b) “of less than 25 per centum” and “of not to exceed such per centum of net savings”; and

  3. Farm Credit Act Amendments of 1980

    Pub. L. 96–592 § 308(2) · 94 Stat. 3437

    Inserted · 12 U.S.C. § 2132(c)

    Pub. L. 96–592, § 308(2), inserted applicability to participation certificates and to borrowers to whom refunds are payable

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 96–592, § 308(2), inserted applicability to participation certificates and to borrowers to whom refunds are payable.

    Enacted provision · exact public law section
    (2) striking out the first sentence of subsection (c) and inserting in lieu thereof a new sentence as follows: “The net savings of each district bank for cooperatives, after the earnings for the fiscal year have been applied in accordance with subsection (a) or (b) of this section, whichever is applicable, shall be paid in stock, participation certificates, or cash, or in any of them, as determined by its board, as patronage refunds to borrowers to whom such refunds are payable who are borrowers of the fiscal year for which such patronage refunds are distributed.”.

  4. Farm Credit Amendments Act of 1985

    Pub. L. 99–205 § 205(e)(7) · 99 Stat. 1678

    Struck · 12 U.S.C. § 2132(a)

    Pub. L. 99–205, § 205(e)(7), struck out subsec. (a) which provided for application of savings when bank for cooperatives has outstanding stock held by the Governor

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 99–205, § 205(e)(7), struck out subsec. (a) which provided for application of savings when bank for cooperatives has outstanding stock held by the Governor.

    Enacted provision · exact public law section
    (7) striking out subsections (a) and (b) of section 2.6;

    Effective date note
    Amendment by Pub. L. 99–205 effective thirty days after Dec. 23, 1985, see section 401 of Pub. L. 99–205, set out as a note under section 2001 of this title.

  5. Farm Credit Amendments Act of 1985

    Pub. L. 99–205 § 205(e)(8)(A) · 99 Stat. 1678

    Substituted · 12 U.S.C. § 2132(b)

    Pub. L. 99–205, § 205(e)(8)(A), substituted “At the end of each fiscal year, the net” for “Whenever at the end of any fiscal year a bank for cooperatives shall have no outstanding capital stock held by the Governor of the Farm Credit Administration, the net”

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 99–205, § 205(e)(8)(A), substituted “At the end of each fiscal year, the net” for “Whenever at the end of any fiscal year a bank for cooperatives shall have no outstanding capital stock held by the Governor of the Farm Credit Administration, the net”.

    Enacted provision · exact public law section
    (8) in section 2.6(c), by striking out “If, at” and all that follows through “the net earnings of such bank” and inserting in lieu thereof “At the end of each fiscal year, the net earnings of each Federal intermediate credit bank”;

    Effective date note
    Amendment by Pub. L. 99–205 effective thirty days after Dec. 23, 1985, see section 401 of Pub. L. 99–205, set out as a note under section 2001 of this title.

  6. Farm Credit Amendments Act of 1985

    Pub. L. 99–205 § 205(e)(8)(B) · 99 Stat. 1678

    Substituted · 12 U.S.C. § 2132(c); 12 U.S.C. § 2132(d)

    Pub. L. 99–205, § 205(e)(8)(B), substituted “subsection (b) of this section” for “subsection (a) or (b) of this section”

    Source evidence

    Code amendment note
    Subsecs. (c), (d). Pub. L. 99–205, § 205(e)(8)(B), substituted “subsection (b) of this section” for “subsection (a) or (b) of this section”.

    Enacted provision · exact public law section
    (8) in section 2.6(c), by striking out “If, at” and all that follows through “the net earnings of such bank” and inserting in lieu thereof “At the end of each fiscal year, the net earnings of each Federal intermediate credit bank”;

    Effective date note
    Amendment by Pub. L. 99–205 effective thirty days after Dec. 23, 1985, see section 401 of Pub. L. 99–205, set out as a note under section 2001 of this title.

  7. Agricultural Credit Act of 1987

    Pub. L. 100–233 title VIII · 101 Stat. 1568

    1. Redesignated · 12 U.S.C. § 2132(a)

      Pub. L. 100–233, §§ 802(r)(1), 805(n)(1), (5), redesignated subsec. (b) as (a)

    2. Substituted · 12 U.S.C. § 2132(a)

      Pub. L. 100–233, §§ 802(r)(1), 805(n)(1), (5), substituted “(b) and (c)” for “(c) and (d)”

    3. Struck · 12 U.S.C. § 2132(a)

      Pub. L. 100–233, §§ 802(r)(1), 805(n)(1), (5), struck out “as may be approved by the Farm Credit Administration” after “payment of operating expenses”

    4. Struck · 12 U.S.C. § 2132(a)

      Pub. L. 100–233, §§ 802(r)(1), 805(n)(1), (5), struck out at end “If during the fiscal year but not at the end thereof a bank shall have had outstanding capital stock held by the United States, provision will be made for payment of franchise taxes required in section 2151 of this title.”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 100–233, §§ 802(r)(1), 805(n)(1), (5), redesignated subsec. (b) as (a), substituted “(b) and (c)” for “(c) and (d)”, struck out “as may be approved by the Farm Credit Administration” after “payment of operating expenses”, and struck out at end “If during the fiscal year but not at the end thereof a bank shall have had outstanding capital stock held by the United States, provision will be made for payment of franchise taxes required in section 2151 of this title.”

    Enacted provision · exact public law
    TITLE VIII— MISCELLANEOUS SEC. 801. OWNERSHIP REQUIREMENT UNDER THE CONSERVATION RESERVE PROGRAM. Section 1235(a)(1) of the Food Security Act of 1985 (16 U.S.C. 3835(a)(1)) is amended— (1) by striking out “or” at the end of subparagraph (B); (2) by striking out the period at the end of subparagraph (C) and inserting in lieu thereof “; or” and (3) by adding at the end thereof the following new subparagraph: “(D) the ownership change occurred due to foreclosure on the land and the owner of the land immediately before the foreclosure exercises a right of redemption from the mortgage holder in accordance with State law.”. SEC. 802. REPEAL OF PREAPPROVAL AND RELATED AUTHORITIES. (a) Approval of Amendments to Federal Land Bank Charters.— Section 1.3 (12 U.S.C. 2011) is amended by striking out the second sentence and inserting in lieu thereof “The Farm Credit Administration shall approve amendments consistent with this Act to charters of Federal land banks.”. (b) Federal Land Bank Powers.— Section 1.4 (12 U.S.C. 2012) is amended— (1) in paragraph (15), by striking out “and approved by” and inserting in lieu thereof “in accordance with regulations of”; (2) in paragraph (21), by striking out “as” and by inserting in lieu thereof “in accordance with generally accepted accounting principles, except as may be”; and (3) in paragraph (22), by striking out “and approved by the Farm Credit Administration”. (c) Land Bank Stock.— Section 1.5 (12 U.S.C. 2013) is amended— (1) in subsection (a), by striking out “with the approval of the Farm Credit Administration”; (2) in subsection (d), by striking out “and approved by the Farm Credit Administration”; and (3) in subsection (f), by striking out “the Farm Credit Administration may approve” and inserting in lieu thereof “may be approved by the board of directors of the bank”. (d) Security for Federal Land Bank Loans.— Section 1.9 (12 U.S.C. 2017) is amended— (1) in the first sentence, by striking out “approved by” and inserting in lieu thereof “prescribed by regulations of”; and (2) in the second sentence, by striking out “and approved by” and inserting in lieu thereof “in accordance with regulations of”. (e) FCA Authority Over Federal Land Bank Associations.— The last sentence of section 1.13 (12 U.S.C. 2031) is amended— (1) by striking out “or by approving bylaws of the association,”; (2) by striking out “direct at any time changes in” and inserting in lieu thereof “approve amendments to”; and (3) by striking out “as” and all that follows through “Act”. (f) Land Bank Reserves.— Section 1.17 (12 U.S.C. 2051) is amended— (1) in subsection (a), by inserting “regulations of’ before “the Farm Credit Administration”; and (2) in subsection (b)— (A) by striking out “(1)”; and (B) by striking out “hereof, and (2) the approval of the Farm Credit Administration”. (g) Association Reserves.— Section 1.18(a) (12 U.S.C. 2052(a)) is amended by inserting “regulations of” before “the Farm Credit Administration”. (h) Federal Intermediate Credit Bank, Establishment.— Section 2.0 (12 U.S.C. 2017) is amended by striking out the second 12 USC 2071. sentence and inserting in lieu thereof “The Farm Credit Administration shall approve amendments consistent with this Act to charters of Federal intermediate credit banks.”. (i) Federal Intermediate Credit Bank, Corporate Powers.— Section 2.1 (12 U.S.C. 2018) is amended— 12 USC 2072. (1) in paragraph (13), by striking out “and approved by” and inserting in lieu thereof “in accordance with regulations of”; and (2) in paragraph (18), by striking out “and approved by the Farm Credit Administration”. (j) Federal Intermediate Credit Bank, Stock.— Section 2.2 (12 U.S.C. 2019) is amended— 12 USC 2073. (1) in subsection (a), by striking out “with the approval of the Farm Credit Administration”; (2) in subsection (d), by striking out “and approved by the Farm Credit Administration”; and (3) in subsection (g)— (A) in the first paragraph, by striking out “, with the approval of the Farm Credit Administration,”; (B) in the second paragraph, by striking out “, with approval of the Farm Credit Administration,”; and (C) in the first sentence of the fourth paragraph, by striking out “under” and inserting in lieu thereof “in accordance with”. (k) Net Earnings.— The second sentence of section 2.6(c) (12 U.S.C. 2077(a)) is amended— (1) by striking out “approved” and inserting in lieu thereof “established”; and (2) by inserting after “Administration” the following “in regulations”. (l) Production Credit Associations, Charter.— The last sentence of section 2.10 (12 U.S.C. 2019) is amended— 12 USC 2091. (1) by striking out “or by approval of bylaws of the association,”; and (2) by striking out “direct” and all that follows through the period and inserting in lieu thereof “approve amendments to the charter of such association.”. (m) Banks for Cooperatives, Establishemnt.— Section 3.0 (12 U.S.C. 2121) is amended by striking out the second sentence and inserting in lieu thereof “The Farm Credit Administration shall approve amendments consistent with this Act to charters and organizational certificates of banks for cooperatives.”. (n) Banks for Cooperatives, Corporation.— Section 3.1 (12 U.S.C. 2122) is amended by striking out “and approved by the Farm Credit Administration” each place it appears. (o) Banks for Cooperatives, Stock.— Section 3.3 (12 U.S.C. 2124) is amended— (1) in subsection (a), by striking out “, with the approval of the Farm Credit Administration,”; (2) in subsection (b), by striking out “with the approval of the Farm Credit Administration”; and (3) in subsection (e), by striking out “and approved by the Farm Credit Administration”. (p) Banks for Cooperatives, Retirement of Stock.— Section 3.5 12 USC 2126. (12 U.S.C. 2125) is amended by striking out “with approval of the Farm Credit Administration”. (q) Ownership of Stock.— Section 3.9(a) (12 U.S.C. 2130(a)) is amended— (1) in the first sentence, by striking out “with the approval of the Farm Credit Administration”; (2) in the second sentence, by striking out “, with the approval of the Farm Credit Administration,”; and (3) in the third sentence, by striking out “as may be approved by the Farm Credit Administration”. (r) 12 USC 2132. Earnings and Reserves.— Section 3.11 (12 U.S.C. 2131) is amended— (1) in subsection (b), by striking out “as may be approved by the Farm Credit Administration”; (2) in subsection (c), by striking out “the Farm Credit Administration may approve” and inserting in lieu thereof “may be approved by the board of directors”; and (3) in subsection (d), by striking out “the Farm Credit Administration may approve” and inserting in lieu thereof “may be approved by the board of directors”. (s) Powers of the Farm Credit Administration.— Section 4.26 (12 U.S.C. 2212) is amended— (1) by striking out “or by prescribing in the terms of the charter or by approval of the bylaws of the corporation”; (2) by striking out “direct at any time” and all that follows through the period at the end of the first sentence and inserting in lieu thereof “approve amendments consistent with this Act to charters or articles of service corporations.”; and (3) by striking out the second sentence. (t) Supervision.— The heading of section 4.27 (12 U.S.C. 2213) is amended by striking out “Supervision” and inserting in lieu thereof “Regulation”. (u) District Elections.— Section 5.2 (12 U.S.C. 2223) is amended— (1) in subsection (b)— (A) by striking out “Farm Credit Administration” the first place it appears and inserting in lieu thereof “district election committee of the district where the election will be held”; and (B) by striking out “Farm Credit Administration” each place it appears thereafter and inserting in lieu thereof “district election committee”; (2) in subsection (c)— (A) by striking out “Farm Credit Administration” the first place it appears and inserting in lieu thereof “district election committee of the district where the election will be held”; (B) by striking out “Farm Credit Administration” each place it appears thereafter and inserting in lieu thereof “district election committee”; and (C) by striking out “(b)” and inserting in lieu thereof “(c)”; and (3) by redesignating subsections (b), (c), and (d), as subsections (c), (d), and (e), respectively, and inserting after subsection (a) the following: “(b) Each district board shall designate a district election committee. No member of such district election committee shall be a candidate for election to the district board. The responsibilities and authorities of the district election committee, delegated by the district board, shall be those set forth in this section.”. (v) Farm Credit Administration, Powers.— Section 5.17 (12 U.S.C. 2251) is amended— 12 USC 2252. (1) in subsection (a)— (A) in paragraph (2), by striking out “amend or modify” and inserting in lieu thereof “approve amendments to”; and (B) in paragraph (5), by striking out “that meet standards and criteria” and all that follows through “refunds by Farm Credit System institutions”; and (2) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively, and by inserting after subsection (a) the following: “(b) The Farm Credit Administration shall not have authority, either direct or indirect, to approve bylaws, or any amendments or modifications or changes to bylaws, of System institutions.”. (w) Transition Rules Relating to Amendment of Certain FCA Approval Authorities.—Part D of title V (12 U.S.C. 2001 note, et seq.) is amended by adding at the end thereof the following new section: “SEC. 5.45. TRANSITION RILES RELATING TO AMENDMENT OF CERTAIN FCA APPROVAL AUTHORITIES. “(a) In General.— Any approvals granted by the Farm Credit Administration before the date of the enactment of this section shall remain in effect on and after such date. “(b) Authority to Issue Regulations.— “(1) In general.— Any approval authority of the Farm Credit Administration that, under the amendments made by section 802 of the Agricultural Credit Act of 1987, became an authority to issue regulations may be exercised only until the earlier of the date the Farm Credit Administration issues final regulations under such authority, or 1 year after the date of the enactment of this section. “(2) Enforcement actions.— At the close of the 1-year period referred to in paragraph (1), the Farm Credit Administration shall not take any enforcement action against any System institution with respect to any provision so amended, until the Farm Credit Administration issues final regulations under such provision. “(c) Effect of Section.— This section shall not affect the authority of the Farm Credit Administration to exercise any other approval authority either on a case-by-case basis or through regulation, as provided in section 5.17(a)(5).”. SEC. 803. SALE OF RURAL DEVELOPMENT NOTES. Section 1001 of the Omnibus Budget Reconciliation Act of 1986 (7 U.S.C. 1929a note) is amended by adding at the end thereof the following new subsections: “(f) Right of First Refusal.— “(1) In general.— Before conducting a sale of a portfolio of notes or other obligations under this section, the Secretary of Agriculture shall— “(A) determine whether the issuer of any unsold note or other obligation desires to purchase the note or other obligation; and “(B) if so, hold open for 30 days, an offer to sell the note or other obligation to the issuer at a price to be determined under paragraph (2). “(2) Determination of offering price.— “(A) Authority.— The Secretary of Agriculture shall determine, in accordance with subparagraph (B), the price at which a note or other obligation shall be offered for sale under this subsection. “(B) Price.— Such price shall be determined by discounting the payment stream of such note or other obligation at the yield on the then most recent sale of the portfolio, adjusted for changes in market interest rates, servicing and sales expenses, and the maturity and interest rate of such note. “(3) Prohibitions.— “(A) Purchase of obligation not tied to purchase of other obligations.— The Secretary of Agriculture shall not require the issuer of any unsold note or other obligation to be offered for sale under this subsection to purchase any other such note or other obligation as a condition of the sale of any such note or other obligation to the issuer. “(B) Offer to be made without regard to financing.— The Secretary shall offer notes or other obligations for sale to the issuers thereof under this subsection without regard to the manner in which such issuers intend to finance the purchase of such notes or other obligations. However, the price of sale to any issuer using tax exempt financing shall be determined using a yield reflective of the Schedule of Certified Interest Rates as published monthly by the Secretary of the Treasury. “(g) Applicability of Prohibition on Curtailment or Limitation of Service.— Section 306(b) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(b)) shall be applicable to all notes or other obligations sold or intended to be sold under this section.”. SEC. 804. OTHER CONFORMING AMENDMENTS. (a) Jurisdiction and Enforcement; Penalties.— (1) Jurisdiction and enforcement.— Section 5.31 (12 U.S.C. 2267) is amended by adding at the end thereof the following: “For purposes of this section, any directive issued under section 4.3(b)(2), 4.3A(e), or 4.14A(i) shall be treated as an effective and outstanding order issued under section 5.25 that has become final.”. (2) Penalties.— Section 5.32 (12 U.S.C. 2268) is amended by adding at the end thereof the following: “(h) For purposes of this section, any directive issued under section 4.3(b)(2), 4.3A(e), or 4.14A(i) shall be treated as an order that has become final and was issued under section 5.25.”. (3) Conforming amendment.— Paragraph (2) of section 4.3(b) (12 U.S.C. 2154(b)(2)) is amended— (A) by striking out “(A)”; and (B) by striking out subparagraph (B). (b) Amendment to Part Heading.— The part heading of part C of title IV is amended to read as follows: “Part C— Rights of Borrowers; Loan Restructuring”. SEC. 805. TECHNICAL AMENDMENTS. (a) Section 1.2 is amended by striking out “the regulation” and 12 USC 2002. inserting in lieu thereof “regulation”. (b) Section 1.15(12) is amended by striking out “or delegated to”. 12 USC 2033. (c) Section 1.20 is amended by striking out “by or other” and 12 USC 2054. inserting in lieu thereof “by other”. (d) Section 2.1(18) is amended by striking out the comma at the 12 USC 2072. end and inserting in lieu thereof a period. (e) Section 2.2 is amended— 12 USC 2073. (1) in subsection (d), by striking out “be issued to” the first place it appears; (2) in subsection (f)— (A) by striking out “other”; and (B) by inserting “of” after “with regard to the payment”; (3) in the second sentence of the fourth undesignated paragraph of subsection (g)— (A) by striking out “other” the first place it appears; and (B) by inserting “the” before “Farm Credit Administration”; and (4) in subsection (h), by striking out “the Farm Credit Administration or”. (f) Section 2.6 is amended— 12 USC 2077. (1) in subsection (c), by striking out the last sentence; and (2) by redesignating subsections (c) and (d), as subsections (a) and (b), respectively. (g) The last sentence of section 2.10 is amended by inserting “the” 12 USC 2091. before “Farm Credit Administration” the second place it appears. (h) Section 2.13 is amended— 12 USC 2094. (1) in subsection (c), by striking out “to other”; and (2) in subsection (d)— (A) by striking out “other” the first place it appears; and (B) by inserting a comma after “noncumulative)”. (i) The section heading for section 2.15 is amended by striking out 12 USC 2096. the comma and inserting in lieu thereof a semicolon. (j) Section 2.17 is amended by inserting “, except that interest on 12 USC 2098. such obligations shall be subject to Federal income taxation in the hands of the holder” before the period at the end. (k) Section 3.3(d) is amended by striking out “by” the first place it 12 USC 2124. appears. (l) Section 3.4 is amended by striking out “other than stock held 12 USC 2125. by the Farm Credit Administration,”. (m) Section 3.8 is amended— (1) by redesignating subsection (1) as subsection (a); 12 USC 2129. (2) by redesignating paragraphs (a), (b), (c), and (d) of the subsection redesignated by paragraph (1) of this subsection, as paragraphs (1), (2), (3), and (4), respectively; (3) by redesignating clauses (1), (2), and (3) of the paragraph redesignated as paragraph (4) by paragraph (2) of this subsection, as clauses (A), (B), and (C), respectively; (4) in the clause redesignated as clause (C) by paragraph (4), by striking out “(2)” and inserting in lieu thereof “(B)”. (n) 12 USC 2132. Section 3.11 is amended— (1) in subsection (b)— (A) by striking out “(c) and (d)” and inserting in lieu thereof “(b) and (c)”; and (B) by striking out the last sentence; (2) in subsection (c)— (A) by striking out “(b) of this section, whichever is applicable,” and inserting in lieu thereof “(a)”; and (B) by striking out “(d)” and inserting in lieu thereof “(c)”; (3) in subsection (d), by striking out “(b) whichever is applicable,” and inserting in lieu thereof “(a)”; (4) in subsection (g)— (A) by striking out “or (b)”; and (B) by striking out “For any year that a bank for cooperatives is subject to Federal income tax, it” and inserting in lieu thereof “A bank for cooperatives”; and (5) by redesignating subsections (b), (c), (d), (e), (f), and (g), as subsections (a), (b), (c), (d), (e), and (0, respectively. (o) 12 USC 2133. Section 3.12 is amended by inserting “the” before “Farm Credit Administration”. (p) 12 USC 2134. Section 3.13 is amended by inserting “, except that interest on such obligations shall be subject to Federal income taxation in the hands of the holder” before the period at the end. (q) 12 USC 2154. Section 4.3(c) is amended by striking out “direct of fully guaranteed” and inserting in lieu thereof “direct or fully guaranteed”. (r) 12 USC 2183. Section 4.12(b) is amended by striking out “court, shall” and inserting in lieu thereof “court shall,”. (s) 12 USC 2202. Section 4.14 is amended— (1) by striking out “committee(s)” and inserting in lieu thereof “committees”; (2) by striking out “4.13” and inserting in lieu thereof “4.13B”, and (3) by striking out “reviews” and inserting in lieu thereof “review”. (t) Title IV is amended— (1) by inserting above and before section 4.15 the following: “Part D— Activities of Institutions of the System”; and (2) 12 USC 2211. by redesignating part D as part E. (u) 12 USC 2218, 2219. Title IV is amended by redesignating parts E and F, as parts G and H, respectively. (v) 12 USC 2221. Section 5.0 is amended by striking out “5.17(2)” and inserting in lieu thereof “5.17(a)(2)”. (w) 12 USC 2243. The section heading of section 5.9 is amended by striking out “; Civil Proceedings”. (x) 12 USC 2245. Section 5.11 is amended by striking out the last sentence. (y) Section 5.16 is amended by transferring the 4 sentences immediately 12 USC 2251. following paragraph (4) to just before the last sentence of such section. (z) Section 5.17(a) is amended— 12 USC 2252. (1) by striking out paragraph (13); and (2) by redesignating paragraphs (14) and (15), as paragraphs (13) and (14), respectively. (aa) Section 5.28 is amended— 12 USC 2264. (1) by inserting “(a)” before “Whenever” the first place it appears; and (2) in subsection (e), by striking out “(d)(3)” and inserting in lieu thereof “(d)”. (bb) Section 5.29 is amended— 12 USC 2265. (1) in subsection (a)— (A) by striking out “interest” and inserting in lieu thereof “interests”; (B) by striking out “the investors in the” and inserting in lieu thereof “investors in”; and (C) by inserting “the” before “Farm Credit System” the third place it appears. (2) in subsection (b), by striking out “in Farm Credit System obligations” and inserting in lieu thereof “of the institution’s shareholders or the investors in Farm Credit System obligations or may threaten to impair public confidence in the institution or the Farm Credit System”. (cc) Section 5.30 is amended by striking out “subsection (g)” and 12 USC 2266. inserting in lieu thereof “section”. (dd) Section 5.32(f) is amended by striking out “sections 5.31 and 12 USC 2268. 5.32” and inserting in lieu thereof “section 5.31 and this section”. (ee) Section 5.37 is amended by striking out “claims,”. 12 USC 2273. (ff) Section 5.41 is amended— 12 USC 393. (1) by striking out subsection (a); and (2) by striking out “(b)”.

  8. Agricultural Credit Act of 1987

    Pub. L. 100–233 title VIII · 101 Stat. 1568

    1. Redesignated · 12 U.S.C. § 2132(b)

      Pub. L. 100–233, §§ 802(r)(2), 805(n)(2), (5), redesignated subsec. (c) as (b)

    2. Redesignated · 12 U.S.C. § 2132(b)

      Pub. L. 100–233, §§ 802(r)(2), 805(n)(2), (5), substituted “(a) of this section” for “(b) of this section, whichever is applicable,”, “(c) below” for “(d) below”, and “may be approved by the board of directors” for “the Farm Credit Administration may approve”. Former subsec. (b) redesignated (a)

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 100–233, §§ 802(r)(2), 805(n)(2), (5), redesignated subsec. (c) as (b) and substituted “(a) of this section” for “(b) of this section, whichever is applicable,”, “(c) below” for “(d) below”, and “may be approved by the board of directors” for “the Farm Credit Administration may approve”. Former subsec. (b) redesignated (a).

    Enacted provision · exact public law
    TITLE VIII— MISCELLANEOUS SEC. 801. OWNERSHIP REQUIREMENT UNDER THE CONSERVATION RESERVE PROGRAM. Section 1235(a)(1) of the Food Security Act of 1985 (16 U.S.C. 3835(a)(1)) is amended— (1) by striking out “or” at the end of subparagraph (B); (2) by striking out the period at the end of subparagraph (C) and inserting in lieu thereof “; or” and (3) by adding at the end thereof the following new subparagraph: “(D) the ownership change occurred due to foreclosure on the land and the owner of the land immediately before the foreclosure exercises a right of redemption from the mortgage holder in accordance with State law.”. SEC. 802. REPEAL OF PREAPPROVAL AND RELATED AUTHORITIES. (a) Approval of Amendments to Federal Land Bank Charters.— Section 1.3 (12 U.S.C. 2011) is amended by striking out the second sentence and inserting in lieu thereof “The Farm Credit Administration shall approve amendments consistent with this Act to charters of Federal land banks.”. (b) Federal Land Bank Powers.— Section 1.4 (12 U.S.C. 2012) is amended— (1) in paragraph (15), by striking out “and approved by” and inserting in lieu thereof “in accordance with regulations of”; (2) in paragraph (21), by striking out “as” and by inserting in lieu thereof “in accordance with generally accepted accounting principles, except as may be”; and (3) in paragraph (22), by striking out “and approved by the Farm Credit Administration”. (c) Land Bank Stock.— Section 1.5 (12 U.S.C. 2013) is amended— (1) in subsection (a), by striking out “with the approval of the Farm Credit Administration”; (2) in subsection (d), by striking out “and approved by the Farm Credit Administration”; and (3) in subsection (f), by striking out “the Farm Credit Administration may approve” and inserting in lieu thereof “may be approved by the board of directors of the bank”. (d) Security for Federal Land Bank Loans.— Section 1.9 (12 U.S.C. 2017) is amended— (1) in the first sentence, by striking out “approved by” and inserting in lieu thereof “prescribed by regulations of”; and (2) in the second sentence, by striking out “and approved by” and inserting in lieu thereof “in accordance with regulations of”. (e) FCA Authority Over Federal Land Bank Associations.— The last sentence of section 1.13 (12 U.S.C. 2031) is amended— (1) by striking out “or by approving bylaws of the association,”; (2) by striking out “direct at any time changes in” and inserting in lieu thereof “approve amendments to”; and (3) by striking out “as” and all that follows through “Act”. (f) Land Bank Reserves.— Section 1.17 (12 U.S.C. 2051) is amended— (1) in subsection (a), by inserting “regulations of’ before “the Farm Credit Administration”; and (2) in subsection (b)— (A) by striking out “(1)”; and (B) by striking out “hereof, and (2) the approval of the Farm Credit Administration”. (g) Association Reserves.— Section 1.18(a) (12 U.S.C. 2052(a)) is amended by inserting “regulations of” before “the Farm Credit Administration”. (h) Federal Intermediate Credit Bank, Establishment.— Section 2.0 (12 U.S.C. 2017) is amended by striking out the second 12 USC 2071. sentence and inserting in lieu thereof “The Farm Credit Administration shall approve amendments consistent with this Act to charters of Federal intermediate credit banks.”. (i) Federal Intermediate Credit Bank, Corporate Powers.— Section 2.1 (12 U.S.C. 2018) is amended— 12 USC 2072. (1) in paragraph (13), by striking out “and approved by” and inserting in lieu thereof “in accordance with regulations of”; and (2) in paragraph (18), by striking out “and approved by the Farm Credit Administration”. (j) Federal Intermediate Credit Bank, Stock.— Section 2.2 (12 U.S.C. 2019) is amended— 12 USC 2073. (1) in subsection (a), by striking out “with the approval of the Farm Credit Administration”; (2) in subsection (d), by striking out “and approved by the Farm Credit Administration”; and (3) in subsection (g)— (A) in the first paragraph, by striking out “, with the approval of the Farm Credit Administration,”; (B) in the second paragraph, by striking out “, with approval of the Farm Credit Administration,”; and (C) in the first sentence of the fourth paragraph, by striking out “under” and inserting in lieu thereof “in accordance with”. (k) Net Earnings.— The second sentence of section 2.6(c) (12 U.S.C. 2077(a)) is amended— (1) by striking out “approved” and inserting in lieu thereof “established”; and (2) by inserting after “Administration” the following “in regulations”. (l) Production Credit Associations, Charter.— The last sentence of section 2.10 (12 U.S.C. 2019) is amended— 12 USC 2091. (1) by striking out “or by approval of bylaws of the association,”; and (2) by striking out “direct” and all that follows through the period and inserting in lieu thereof “approve amendments to the charter of such association.”. (m) Banks for Cooperatives, Establishemnt.— Section 3.0 (12 U.S.C. 2121) is amended by striking out the second sentence and inserting in lieu thereof “The Farm Credit Administration shall approve amendments consistent with this Act to charters and organizational certificates of banks for cooperatives.”. (n) Banks for Cooperatives, Corporation.— Section 3.1 (12 U.S.C. 2122) is amended by striking out “and approved by the Farm Credit Administration” each place it appears. (o) Banks for Cooperatives, Stock.— Section 3.3 (12 U.S.C. 2124) is amended— (1) in subsection (a), by striking out “, with the approval of the Farm Credit Administration,”; (2) in subsection (b), by striking out “with the approval of the Farm Credit Administration”; and (3) in subsection (e), by striking out “and approved by the Farm Credit Administration”. (p) Banks for Cooperatives, Retirement of Stock.— Section 3.5 12 USC 2126. (12 U.S.C. 2125) is amended by striking out “with approval of the Farm Credit Administration”. (q) Ownership of Stock.— Section 3.9(a) (12 U.S.C. 2130(a)) is amended— (1) in the first sentence, by striking out “with the approval of the Farm Credit Administration”; (2) in the second sentence, by striking out “, with the approval of the Farm Credit Administration,”; and (3) in the third sentence, by striking out “as may be approved by the Farm Credit Administration”. (r) 12 USC 2132. Earnings and Reserves.— Section 3.11 (12 U.S.C. 2131) is amended— (1) in subsection (b), by striking out “as may be approved by the Farm Credit Administration”; (2) in subsection (c), by striking out “the Farm Credit Administration may approve” and inserting in lieu thereof “may be approved by the board of directors”; and (3) in subsection (d), by striking out “the Farm Credit Administration may approve” and inserting in lieu thereof “may be approved by the board of directors”. (s) Powers of the Farm Credit Administration.— Section 4.26 (12 U.S.C. 2212) is amended— (1) by striking out “or by prescribing in the terms of the charter or by approval of the bylaws of the corporation”; (2) by striking out “direct at any time” and all that follows through the period at the end of the first sentence and inserting in lieu thereof “approve amendments consistent with this Act to charters or articles of service corporations.”; and (3) by striking out the second sentence. (t) Supervision.— The heading of section 4.27 (12 U.S.C. 2213) is amended by striking out “Supervision” and inserting in lieu thereof “Regulation”. (u) District Elections.— Section 5.2 (12 U.S.C. 2223) is amended— (1) in subsection (b)— (A) by striking out “Farm Credit Administration” the first place it appears and inserting in lieu thereof “district election committee of the district where the election will be held”; and (B) by striking out “Farm Credit Administration” each place it appears thereafter and inserting in lieu thereof “district election committee”; (2) in subsection (c)— (A) by striking out “Farm Credit Administration” the first place it appears and inserting in lieu thereof “district election committee of the district where the election will be held”; (B) by striking out “Farm Credit Administration” each place it appears thereafter and inserting in lieu thereof “district election committee”; and (C) by striking out “(b)” and inserting in lieu thereof “(c)”; and (3) by redesignating subsections (b), (c), and (d), as subsections (c), (d), and (e), respectively, and inserting after subsection (a) the following: “(b) Each district board shall designate a district election committee. No member of such district election committee shall be a candidate for election to the district board. The responsibilities and authorities of the district election committee, delegated by the district board, shall be those set forth in this section.”. (v) Farm Credit Administration, Powers.— Section 5.17 (12 U.S.C. 2251) is amended— 12 USC 2252. (1) in subsection (a)— (A) in paragraph (2), by striking out “amend or modify” and inserting in lieu thereof “approve amendments to”; and (B) in paragraph (5), by striking out “that meet standards and criteria” and all that follows through “refunds by Farm Credit System institutions”; and (2) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively, and by inserting after subsection (a) the following: “(b) The Farm Credit Administration shall not have authority, either direct or indirect, to approve bylaws, or any amendments or modifications or changes to bylaws, of System institutions.”. (w) Transition Rules Relating to Amendment of Certain FCA Approval Authorities.—Part D of title V (12 U.S.C. 2001 note, et seq.) is amended by adding at the end thereof the following new section: “SEC. 5.45. TRANSITION RILES RELATING TO AMENDMENT OF CERTAIN FCA APPROVAL AUTHORITIES. “(a) In General.— Any approvals granted by the Farm Credit Administration before the date of the enactment of this section shall remain in effect on and after such date. “(b) Authority to Issue Regulations.— “(1) In general.— Any approval authority of the Farm Credit Administration that, under the amendments made by section 802 of the Agricultural Credit Act of 1987, became an authority to issue regulations may be exercised only until the earlier of the date the Farm Credit Administration issues final regulations under such authority, or 1 year after the date of the enactment of this section. “(2) Enforcement actions.— At the close of the 1-year period referred to in paragraph (1), the Farm Credit Administration shall not take any enforcement action against any System institution with respect to any provision so amended, until the Farm Credit Administration issues final regulations under such provision. “(c) Effect of Section.— This section shall not affect the authority of the Farm Credit Administration to exercise any other approval authority either on a case-by-case basis or through regulation, as provided in section 5.17(a)(5).”. SEC. 803. SALE OF RURAL DEVELOPMENT NOTES. Section 1001 of the Omnibus Budget Reconciliation Act of 1986 (7 U.S.C. 1929a note) is amended by adding at the end thereof the following new subsections: “(f) Right of First Refusal.— “(1) In general.— Before conducting a sale of a portfolio of notes or other obligations under this section, the Secretary of Agriculture shall— “(A) determine whether the issuer of any unsold note or other obligation desires to purchase the note or other obligation; and “(B) if so, hold open for 30 days, an offer to sell the note or other obligation to the issuer at a price to be determined under paragraph (2). “(2) Determination of offering price.— “(A) Authority.— The Secretary of Agriculture shall determine, in accordance with subparagraph (B), the price at which a note or other obligation shall be offered for sale under this subsection. “(B) Price.— Such price shall be determined by discounting the payment stream of such note or other obligation at the yield on the then most recent sale of the portfolio, adjusted for changes in market interest rates, servicing and sales expenses, and the maturity and interest rate of such note. “(3) Prohibitions.— “(A) Purchase of obligation not tied to purchase of other obligations.— The Secretary of Agriculture shall not require the issuer of any unsold note or other obligation to be offered for sale under this subsection to purchase any other such note or other obligation as a condition of the sale of any such note or other obligation to the issuer. “(B) Offer to be made without regard to financing.— The Secretary shall offer notes or other obligations for sale to the issuers thereof under this subsection without regard to the manner in which such issuers intend to finance the purchase of such notes or other obligations. However, the price of sale to any issuer using tax exempt financing shall be determined using a yield reflective of the Schedule of Certified Interest Rates as published monthly by the Secretary of the Treasury. “(g) Applicability of Prohibition on Curtailment or Limitation of Service.— Section 306(b) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(b)) shall be applicable to all notes or other obligations sold or intended to be sold under this section.”. SEC. 804. OTHER CONFORMING AMENDMENTS. (a) Jurisdiction and Enforcement; Penalties.— (1) Jurisdiction and enforcement.— Section 5.31 (12 U.S.C. 2267) is amended by adding at the end thereof the following: “For purposes of this section, any directive issued under section 4.3(b)(2), 4.3A(e), or 4.14A(i) shall be treated as an effective and outstanding order issued under section 5.25 that has become final.”. (2) Penalties.— Section 5.32 (12 U.S.C. 2268) is amended by adding at the end thereof the following: “(h) For purposes of this section, any directive issued under section 4.3(b)(2), 4.3A(e), or 4.14A(i) shall be treated as an order that has become final and was issued under section 5.25.”. (3) Conforming amendment.— Paragraph (2) of section 4.3(b) (12 U.S.C. 2154(b)(2)) is amended— (A) by striking out “(A)”; and (B) by striking out subparagraph (B). (b) Amendment to Part Heading.— The part heading of part C of title IV is amended to read as follows: “Part C— Rights of Borrowers; Loan Restructuring”. SEC. 805. TECHNICAL AMENDMENTS. (a) Section 1.2 is amended by striking out “the regulation” and 12 USC 2002. inserting in lieu thereof “regulation”. (b) Section 1.15(12) is amended by striking out “or delegated to”. 12 USC 2033. (c) Section 1.20 is amended by striking out “by or other” and 12 USC 2054. inserting in lieu thereof “by other”. (d) Section 2.1(18) is amended by striking out the comma at the 12 USC 2072. end and inserting in lieu thereof a period. (e) Section 2.2 is amended— 12 USC 2073. (1) in subsection (d), by striking out “be issued to” the first place it appears; (2) in subsection (f)— (A) by striking out “other”; and (B) by inserting “of” after “with regard to the payment”; (3) in the second sentence of the fourth undesignated paragraph of subsection (g)— (A) by striking out “other” the first place it appears; and (B) by inserting “the” before “Farm Credit Administration”; and (4) in subsection (h), by striking out “the Farm Credit Administration or”. (f) Section 2.6 is amended— 12 USC 2077. (1) in subsection (c), by striking out the last sentence; and (2) by redesignating subsections (c) and (d), as subsections (a) and (b), respectively. (g) The last sentence of section 2.10 is amended by inserting “the” 12 USC 2091. before “Farm Credit Administration” the second place it appears. (h) Section 2.13 is amended— 12 USC 2094. (1) in subsection (c), by striking out “to other”; and (2) in subsection (d)— (A) by striking out “other” the first place it appears; and (B) by inserting a comma after “noncumulative)”. (i) The section heading for section 2.15 is amended by striking out 12 USC 2096. the comma and inserting in lieu thereof a semicolon. (j) Section 2.17 is amended by inserting “, except that interest on 12 USC 2098. such obligations shall be subject to Federal income taxation in the hands of the holder” before the period at the end. (k) Section 3.3(d) is amended by striking out “by” the first place it 12 USC 2124. appears. (l) Section 3.4 is amended by striking out “other than stock held 12 USC 2125. by the Farm Credit Administration,”. (m) Section 3.8 is amended— (1) by redesignating subsection (1) as subsection (a); 12 USC 2129. (2) by redesignating paragraphs (a), (b), (c), and (d) of the subsection redesignated by paragraph (1) of this subsection, as paragraphs (1), (2), (3), and (4), respectively; (3) by redesignating clauses (1), (2), and (3) of the paragraph redesignated as paragraph (4) by paragraph (2) of this subsection, as clauses (A), (B), and (C), respectively; (4) in the clause redesignated as clause (C) by paragraph (4), by striking out “(2)” and inserting in lieu thereof “(B)”. (n) 12 USC 2132. Section 3.11 is amended— (1) in subsection (b)— (A) by striking out “(c) and (d)” and inserting in lieu thereof “(b) and (c)”; and (B) by striking out the last sentence; (2) in subsection (c)— (A) by striking out “(b) of this section, whichever is applicable,” and inserting in lieu thereof “(a)”; and (B) by striking out “(d)” and inserting in lieu thereof “(c)”; (3) in subsection (d), by striking out “(b) whichever is applicable,” and inserting in lieu thereof “(a)”; (4) in subsection (g)— (A) by striking out “or (b)”; and (B) by striking out “For any year that a bank for cooperatives is subject to Federal income tax, it” and inserting in lieu thereof “A bank for cooperatives”; and (5) by redesignating subsections (b), (c), (d), (e), (f), and (g), as subsections (a), (b), (c), (d), (e), and (0, respectively. (o) 12 USC 2133. Section 3.12 is amended by inserting “the” before “Farm Credit Administration”. (p) 12 USC 2134. Section 3.13 is amended by inserting “, except that interest on such obligations shall be subject to Federal income taxation in the hands of the holder” before the period at the end. (q) 12 USC 2154. Section 4.3(c) is amended by striking out “direct of fully guaranteed” and inserting in lieu thereof “direct or fully guaranteed”. (r) 12 USC 2183. Section 4.12(b) is amended by striking out “court, shall” and inserting in lieu thereof “court shall,”. (s) 12 USC 2202. Section 4.14 is amended— (1) by striking out “committee(s)” and inserting in lieu thereof “committees”; (2) by striking out “4.13” and inserting in lieu thereof “4.13B”, and (3) by striking out “reviews” and inserting in lieu thereof “review”. (t) Title IV is amended— (1) by inserting above and before section 4.15 the following: “Part D— Activities of Institutions of the System”; and (2) 12 USC 2211. by redesignating part D as part E. (u) 12 USC 2218, 2219. Title IV is amended by redesignating parts E and F, as parts G and H, respectively. (v) 12 USC 2221. Section 5.0 is amended by striking out “5.17(2)” and inserting in lieu thereof “5.17(a)(2)”. (w) 12 USC 2243. The section heading of section 5.9 is amended by striking out “; Civil Proceedings”. (x) 12 USC 2245. Section 5.11 is amended by striking out the last sentence. (y) Section 5.16 is amended by transferring the 4 sentences immediately 12 USC 2251. following paragraph (4) to just before the last sentence of such section. (z) Section 5.17(a) is amended— 12 USC 2252. (1) by striking out paragraph (13); and (2) by redesignating paragraphs (14) and (15), as paragraphs (13) and (14), respectively. (aa) Section 5.28 is amended— 12 USC 2264. (1) by inserting “(a)” before “Whenever” the first place it appears; and (2) in subsection (e), by striking out “(d)(3)” and inserting in lieu thereof “(d)”. (bb) Section 5.29 is amended— 12 USC 2265. (1) in subsection (a)— (A) by striking out “interest” and inserting in lieu thereof “interests”; (B) by striking out “the investors in the” and inserting in lieu thereof “investors in”; and (C) by inserting “the” before “Farm Credit System” the third place it appears. (2) in subsection (b), by striking out “in Farm Credit System obligations” and inserting in lieu thereof “of the institution’s shareholders or the investors in Farm Credit System obligations or may threaten to impair public confidence in the institution or the Farm Credit System”. (cc) Section 5.30 is amended by striking out “subsection (g)” and 12 USC 2266. inserting in lieu thereof “section”. (dd) Section 5.32(f) is amended by striking out “sections 5.31 and 12 USC 2268. 5.32” and inserting in lieu thereof “section 5.31 and this section”. (ee) Section 5.37 is amended by striking out “claims,”. 12 USC 2273. (ff) Section 5.41 is amended— 12 USC 393. (1) by striking out subsection (a); and (2) by striking out “(b)”.

  9. Agricultural Credit Act of 1987

    Pub. L. 100–233 title VIII · 101 Stat. 1568

    1. Redesignated · 12 U.S.C. § 2132(c)

      Pub. L. 100–233, §§ 802(r)(3), 805(n)(3), (5), redesignated subsec. (d) as (c)

    2. Redesignated · 12 U.S.C. § 2132(c)

      Pub. L. 100–233, §§ 802(r)(3), 805(n)(3), (5), substituted “(a) of this section” for “(b) of this section whichever is applicable,” and “may be approved by the board of directors” for “the Farm Credit Administration may approve”. Former subsec. (c) redesignated (b)

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 100–233, §§ 802(r)(3), 805(n)(3), (5), redesignated subsec. (d) as (c) and substituted “(a) of this section” for “(b) of this section whichever is applicable,” and “may be approved by the board of directors” for “the Farm Credit Administration may approve”. Former subsec. (c) redesignated (b).

    Enacted provision · exact public law
    TITLE VIII— MISCELLANEOUS SEC. 801. OWNERSHIP REQUIREMENT UNDER THE CONSERVATION RESERVE PROGRAM. Section 1235(a)(1) of the Food Security Act of 1985 (16 U.S.C. 3835(a)(1)) is amended— (1) by striking out “or” at the end of subparagraph (B); (2) by striking out the period at the end of subparagraph (C) and inserting in lieu thereof “; or” and (3) by adding at the end thereof the following new subparagraph: “(D) the ownership change occurred due to foreclosure on the land and the owner of the land immediately before the foreclosure exercises a right of redemption from the mortgage holder in accordance with State law.”. SEC. 802. REPEAL OF PREAPPROVAL AND RELATED AUTHORITIES. (a) Approval of Amendments to Federal Land Bank Charters.— Section 1.3 (12 U.S.C. 2011) is amended by striking out the second sentence and inserting in lieu thereof “The Farm Credit Administration shall approve amendments consistent with this Act to charters of Federal land banks.”. (b) Federal Land Bank Powers.— Section 1.4 (12 U.S.C. 2012) is amended— (1) in paragraph (15), by striking out “and approved by” and inserting in lieu thereof “in accordance with regulations of”; (2) in paragraph (21), by striking out “as” and by inserting in lieu thereof “in accordance with generally accepted accounting principles, except as may be”; and (3) in paragraph (22), by striking out “and approved by the Farm Credit Administration”. (c) Land Bank Stock.— Section 1.5 (12 U.S.C. 2013) is amended— (1) in subsection (a), by striking out “with the approval of the Farm Credit Administration”; (2) in subsection (d), by striking out “and approved by the Farm Credit Administration”; and (3) in subsection (f), by striking out “the Farm Credit Administration may approve” and inserting in lieu thereof “may be approved by the board of directors of the bank”. (d) Security for Federal Land Bank Loans.— Section 1.9 (12 U.S.C. 2017) is amended— (1) in the first sentence, by striking out “approved by” and inserting in lieu thereof “prescribed by regulations of”; and (2) in the second sentence, by striking out “and approved by” and inserting in lieu thereof “in accordance with regulations of”. (e) FCA Authority Over Federal Land Bank Associations.— The last sentence of section 1.13 (12 U.S.C. 2031) is amended— (1) by striking out “or by approving bylaws of the association,”; (2) by striking out “direct at any time changes in” and inserting in lieu thereof “approve amendments to”; and (3) by striking out “as” and all that follows through “Act”. (f) Land Bank Reserves.— Section 1.17 (12 U.S.C. 2051) is amended— (1) in subsection (a), by inserting “regulations of’ before “the Farm Credit Administration”; and (2) in subsection (b)— (A) by striking out “(1)”; and (B) by striking out “hereof, and (2) the approval of the Farm Credit Administration”. (g) Association Reserves.— Section 1.18(a) (12 U.S.C. 2052(a)) is amended by inserting “regulations of” before “the Farm Credit Administration”. (h) Federal Intermediate Credit Bank, Establishment.— Section 2.0 (12 U.S.C. 2017) is amended by striking out the second 12 USC 2071. sentence and inserting in lieu thereof “The Farm Credit Administration shall approve amendments consistent with this Act to charters of Federal intermediate credit banks.”. (i) Federal Intermediate Credit Bank, Corporate Powers.— Section 2.1 (12 U.S.C. 2018) is amended— 12 USC 2072. (1) in paragraph (13), by striking out “and approved by” and inserting in lieu thereof “in accordance with regulations of”; and (2) in paragraph (18), by striking out “and approved by the Farm Credit Administration”. (j) Federal Intermediate Credit Bank, Stock.— Section 2.2 (12 U.S.C. 2019) is amended— 12 USC 2073. (1) in subsection (a), by striking out “with the approval of the Farm Credit Administration”; (2) in subsection (d), by striking out “and approved by the Farm Credit Administration”; and (3) in subsection (g)— (A) in the first paragraph, by striking out “, with the approval of the Farm Credit Administration,”; (B) in the second paragraph, by striking out “, with approval of the Farm Credit Administration,”; and (C) in the first sentence of the fourth paragraph, by striking out “under” and inserting in lieu thereof “in accordance with”. (k) Net Earnings.— The second sentence of section 2.6(c) (12 U.S.C. 2077(a)) is amended— (1) by striking out “approved” and inserting in lieu thereof “established”; and (2) by inserting after “Administration” the following “in regulations”. (l) Production Credit Associations, Charter.— The last sentence of section 2.10 (12 U.S.C. 2019) is amended— 12 USC 2091. (1) by striking out “or by approval of bylaws of the association,”; and (2) by striking out “direct” and all that follows through the period and inserting in lieu thereof “approve amendments to the charter of such association.”. (m) Banks for Cooperatives, Establishemnt.— Section 3.0 (12 U.S.C. 2121) is amended by striking out the second sentence and inserting in lieu thereof “The Farm Credit Administration shall approve amendments consistent with this Act to charters and organizational certificates of banks for cooperatives.”. (n) Banks for Cooperatives, Corporation.— Section 3.1 (12 U.S.C. 2122) is amended by striking out “and approved by the Farm Credit Administration” each place it appears. (o) Banks for Cooperatives, Stock.— Section 3.3 (12 U.S.C. 2124) is amended— (1) in subsection (a), by striking out “, with the approval of the Farm Credit Administration,”; (2) in subsection (b), by striking out “with the approval of the Farm Credit Administration”; and (3) in subsection (e), by striking out “and approved by the Farm Credit Administration”. (p) Banks for Cooperatives, Retirement of Stock.— Section 3.5 12 USC 2126. (12 U.S.C. 2125) is amended by striking out “with approval of the Farm Credit Administration”. (q) Ownership of Stock.— Section 3.9(a) (12 U.S.C. 2130(a)) is amended— (1) in the first sentence, by striking out “with the approval of the Farm Credit Administration”; (2) in the second sentence, by striking out “, with the approval of the Farm Credit Administration,”; and (3) in the third sentence, by striking out “as may be approved by the Farm Credit Administration”. (r) 12 USC 2132. Earnings and Reserves.— Section 3.11 (12 U.S.C. 2131) is amended— (1) in subsection (b), by striking out “as may be approved by the Farm Credit Administration”; (2) in subsection (c), by striking out “the Farm Credit Administration may approve” and inserting in lieu thereof “may be approved by the board of directors”; and (3) in subsection (d), by striking out “the Farm Credit Administration may approve” and inserting in lieu thereof “may be approved by the board of directors”. (s) Powers of the Farm Credit Administration.— Section 4.26 (12 U.S.C. 2212) is amended— (1) by striking out “or by prescribing in the terms of the charter or by approval of the bylaws of the corporation”; (2) by striking out “direct at any time” and all that follows through the period at the end of the first sentence and inserting in lieu thereof “approve amendments consistent with this Act to charters or articles of service corporations.”; and (3) by striking out the second sentence. (t) Supervision.— The heading of section 4.27 (12 U.S.C. 2213) is amended by striking out “Supervision” and inserting in lieu thereof “Regulation”. (u) District Elections.— Section 5.2 (12 U.S.C. 2223) is amended— (1) in subsection (b)— (A) by striking out “Farm Credit Administration” the first place it appears and inserting in lieu thereof “district election committee of the district where the election will be held”; and (B) by striking out “Farm Credit Administration” each place it appears thereafter and inserting in lieu thereof “district election committee”; (2) in subsection (c)— (A) by striking out “Farm Credit Administration” the first place it appears and inserting in lieu thereof “district election committee of the district where the election will be held”; (B) by striking out “Farm Credit Administration” each place it appears thereafter and inserting in lieu thereof “district election committee”; and (C) by striking out “(b)” and inserting in lieu thereof “(c)”; and (3) by redesignating subsections (b), (c), and (d), as subsections (c), (d), and (e), respectively, and inserting after subsection (a) the following: “(b) Each district board shall designate a district election committee. No member of such district election committee shall be a candidate for election to the district board. The responsibilities and authorities of the district election committee, delegated by the district board, shall be those set forth in this section.”. (v) Farm Credit Administration, Powers.— Section 5.17 (12 U.S.C. 2251) is amended— 12 USC 2252. (1) in subsection (a)— (A) in paragraph (2), by striking out “amend or modify” and inserting in lieu thereof “approve amendments to”; and (B) in paragraph (5), by striking out “that meet standards and criteria” and all that follows through “refunds by Farm Credit System institutions”; and (2) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively, and by inserting after subsection (a) the following: “(b) The Farm Credit Administration shall not have authority, either direct or indirect, to approve bylaws, or any amendments or modifications or changes to bylaws, of System institutions.”. (w) Transition Rules Relating to Amendment of Certain FCA Approval Authorities.—Part D of title V (12 U.S.C. 2001 note, et seq.) is amended by adding at the end thereof the following new section: “SEC. 5.45. TRANSITION RILES RELATING TO AMENDMENT OF CERTAIN FCA APPROVAL AUTHORITIES. “(a) In General.— Any approvals granted by the Farm Credit Administration before the date of the enactment of this section shall remain in effect on and after such date. “(b) Authority to Issue Regulations.— “(1) In general.— Any approval authority of the Farm Credit Administration that, under the amendments made by section 802 of the Agricultural Credit Act of 1987, became an authority to issue regulations may be exercised only until the earlier of the date the Farm Credit Administration issues final regulations under such authority, or 1 year after the date of the enactment of this section. “(2) Enforcement actions.— At the close of the 1-year period referred to in paragraph (1), the Farm Credit Administration shall not take any enforcement action against any System institution with respect to any provision so amended, until the Farm Credit Administration issues final regulations under such provision. “(c) Effect of Section.— This section shall not affect the authority of the Farm Credit Administration to exercise any other approval authority either on a case-by-case basis or through regulation, as provided in section 5.17(a)(5).”. SEC. 803. SALE OF RURAL DEVELOPMENT NOTES. Section 1001 of the Omnibus Budget Reconciliation Act of 1986 (7 U.S.C. 1929a note) is amended by adding at the end thereof the following new subsections: “(f) Right of First Refusal.— “(1) In general.— Before conducting a sale of a portfolio of notes or other obligations under this section, the Secretary of Agriculture shall— “(A) determine whether the issuer of any unsold note or other obligation desires to purchase the note or other obligation; and “(B) if so, hold open for 30 days, an offer to sell the note or other obligation to the issuer at a price to be determined under paragraph (2). “(2) Determination of offering price.— “(A) Authority.— The Secretary of Agriculture shall determine, in accordance with subparagraph (B), the price at which a note or other obligation shall be offered for sale under this subsection. “(B) Price.— Such price shall be determined by discounting the payment stream of such note or other obligation at the yield on the then most recent sale of the portfolio, adjusted for changes in market interest rates, servicing and sales expenses, and the maturity and interest rate of such note. “(3) Prohibitions.— “(A) Purchase of obligation not tied to purchase of other obligations.— The Secretary of Agriculture shall not require the issuer of any unsold note or other obligation to be offered for sale under this subsection to purchase any other such note or other obligation as a condition of the sale of any such note or other obligation to the issuer. “(B) Offer to be made without regard to financing.— The Secretary shall offer notes or other obligations for sale to the issuers thereof under this subsection without regard to the manner in which such issuers intend to finance the purchase of such notes or other obligations. However, the price of sale to any issuer using tax exempt financing shall be determined using a yield reflective of the Schedule of Certified Interest Rates as published monthly by the Secretary of the Treasury. “(g) Applicability of Prohibition on Curtailment or Limitation of Service.— Section 306(b) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(b)) shall be applicable to all notes or other obligations sold or intended to be sold under this section.”. SEC. 804. OTHER CONFORMING AMENDMENTS. (a) Jurisdiction and Enforcement; Penalties.— (1) Jurisdiction and enforcement.— Section 5.31 (12 U.S.C. 2267) is amended by adding at the end thereof the following: “For purposes of this section, any directive issued under section 4.3(b)(2), 4.3A(e), or 4.14A(i) shall be treated as an effective and outstanding order issued under section 5.25 that has become final.”. (2) Penalties.— Section 5.32 (12 U.S.C. 2268) is amended by adding at the end thereof the following: “(h) For purposes of this section, any directive issued under section 4.3(b)(2), 4.3A(e), or 4.14A(i) shall be treated as an order that has become final and was issued under section 5.25.”. (3) Conforming amendment.— Paragraph (2) of section 4.3(b) (12 U.S.C. 2154(b)(2)) is amended— (A) by striking out “(A)”; and (B) by striking out subparagraph (B). (b) Amendment to Part Heading.— The part heading of part C of title IV is amended to read as follows: “Part C— Rights of Borrowers; Loan Restructuring”. SEC. 805. TECHNICAL AMENDMENTS. (a) Section 1.2 is amended by striking out “the regulation” and 12 USC 2002. inserting in lieu thereof “regulation”. (b) Section 1.15(12) is amended by striking out “or delegated to”. 12 USC 2033. (c) Section 1.20 is amended by striking out “by or other” and 12 USC 2054. inserting in lieu thereof “by other”. (d) Section 2.1(18) is amended by striking out the comma at the 12 USC 2072. end and inserting in lieu thereof a period. (e) Section 2.2 is amended— 12 USC 2073. (1) in subsection (d), by striking out “be issued to” the first place it appears; (2) in subsection (f)— (A) by striking out “other”; and (B) by inserting “of” after “with regard to the payment”; (3) in the second sentence of the fourth undesignated paragraph of subsection (g)— (A) by striking out “other” the first place it appears; and (B) by inserting “the” before “Farm Credit Administration”; and (4) in subsection (h), by striking out “the Farm Credit Administration or”. (f) Section 2.6 is amended— 12 USC 2077. (1) in subsection (c), by striking out the last sentence; and (2) by redesignating subsections (c) and (d), as subsections (a) and (b), respectively. (g) The last sentence of section 2.10 is amended by inserting “the” 12 USC 2091. before “Farm Credit Administration” the second place it appears. (h) Section 2.13 is amended— 12 USC 2094. (1) in subsection (c), by striking out “to other”; and (2) in subsection (d)— (A) by striking out “other” the first place it appears; and (B) by inserting a comma after “noncumulative)”. (i) The section heading for section 2.15 is amended by striking out 12 USC 2096. the comma and inserting in lieu thereof a semicolon. (j) Section 2.17 is amended by inserting “, except that interest on 12 USC 2098. such obligations shall be subject to Federal income taxation in the hands of the holder” before the period at the end. (k) Section 3.3(d) is amended by striking out “by” the first place it 12 USC 2124. appears. (l) Section 3.4 is amended by striking out “other than stock held 12 USC 2125. by the Farm Credit Administration,”. (m) Section 3.8 is amended— (1) by redesignating subsection (1) as subsection (a); 12 USC 2129. (2) by redesignating paragraphs (a), (b), (c), and (d) of the subsection redesignated by paragraph (1) of this subsection, as paragraphs (1), (2), (3), and (4), respectively; (3) by redesignating clauses (1), (2), and (3) of the paragraph redesignated as paragraph (4) by paragraph (2) of this subsection, as clauses (A), (B), and (C), respectively; (4) in the clause redesignated as clause (C) by paragraph (4), by striking out “(2)” and inserting in lieu thereof “(B)”. (n) 12 USC 2132. Section 3.11 is amended— (1) in subsection (b)— (A) by striking out “(c) and (d)” and inserting in lieu thereof “(b) and (c)”; and (B) by striking out the last sentence; (2) in subsection (c)— (A) by striking out “(b) of this section, whichever is applicable,” and inserting in lieu thereof “(a)”; and (B) by striking out “(d)” and inserting in lieu thereof “(c)”; (3) in subsection (d), by striking out “(b) whichever is applicable,” and inserting in lieu thereof “(a)”; (4) in subsection (g)— (A) by striking out “or (b)”; and (B) by striking out “For any year that a bank for cooperatives is subject to Federal income tax, it” and inserting in lieu thereof “A bank for cooperatives”; and (5) by redesignating subsections (b), (c), (d), (e), (f), and (g), as subsections (a), (b), (c), (d), (e), and (0, respectively. (o) 12 USC 2133. Section 3.12 is amended by inserting “the” before “Farm Credit Administration”. (p) 12 USC 2134. Section 3.13 is amended by inserting “, except that interest on such obligations shall be subject to Federal income taxation in the hands of the holder” before the period at the end. (q) 12 USC 2154. Section 4.3(c) is amended by striking out “direct of fully guaranteed” and inserting in lieu thereof “direct or fully guaranteed”. (r) 12 USC 2183. Section 4.12(b) is amended by striking out “court, shall” and inserting in lieu thereof “court shall,”. (s) 12 USC 2202. Section 4.14 is amended— (1) by striking out “committee(s)” and inserting in lieu thereof “committees”; (2) by striking out “4.13” and inserting in lieu thereof “4.13B”, and (3) by striking out “reviews” and inserting in lieu thereof “review”. (t) Title IV is amended— (1) by inserting above and before section 4.15 the following: “Part D— Activities of Institutions of the System”; and (2) 12 USC 2211. by redesignating part D as part E. (u) 12 USC 2218, 2219. Title IV is amended by redesignating parts E and F, as parts G and H, respectively. (v) 12 USC 2221. Section 5.0 is amended by striking out “5.17(2)” and inserting in lieu thereof “5.17(a)(2)”. (w) 12 USC 2243. The section heading of section 5.9 is amended by striking out “; Civil Proceedings”. (x) 12 USC 2245. Section 5.11 is amended by striking out the last sentence. (y) Section 5.16 is amended by transferring the 4 sentences immediately 12 USC 2251. following paragraph (4) to just before the last sentence of such section. (z) Section 5.17(a) is amended— 12 USC 2252. (1) by striking out paragraph (13); and (2) by redesignating paragraphs (14) and (15), as paragraphs (13) and (14), respectively. (aa) Section 5.28 is amended— 12 USC 2264. (1) by inserting “(a)” before “Whenever” the first place it appears; and (2) in subsection (e), by striking out “(d)(3)” and inserting in lieu thereof “(d)”. (bb) Section 5.29 is amended— 12 USC 2265. (1) in subsection (a)— (A) by striking out “interest” and inserting in lieu thereof “interests”; (B) by striking out “the investors in the” and inserting in lieu thereof “investors in”; and (C) by inserting “the” before “Farm Credit System” the third place it appears. (2) in subsection (b), by striking out “in Farm Credit System obligations” and inserting in lieu thereof “of the institution’s shareholders or the investors in Farm Credit System obligations or may threaten to impair public confidence in the institution or the Farm Credit System”. (cc) Section 5.30 is amended by striking out “subsection (g)” and 12 USC 2266. inserting in lieu thereof “section”. (dd) Section 5.32(f) is amended by striking out “sections 5.31 and 12 USC 2268. 5.32” and inserting in lieu thereof “section 5.31 and this section”. (ee) Section 5.37 is amended by striking out “claims,”. 12 USC 2273. (ff) Section 5.41 is amended— 12 USC 393. (1) by striking out subsection (a); and (2) by striking out “(b)”.

  10. Agricultural Credit Act of 1987

    Pub. L. 100–233 § 805(n)(5) · 101 Stat. 1568

    Redesignated · 12 U.S.C. § 2132(d); 12 U.S.C. § 2132(e)

    Pub. L. 100–233, § 805(n)(5), redesignated subsecs. (e) and (f) as (d) and (e), respectively. Former subsec. (d) redesignated (c)

    Source evidence

    Code amendment note
    Subsecs. (d), (e). Pub. L. 100–233, § 805(n)(5), redesignated subsecs. (e) and (f) as (d) and (e), respectively. Former subsec. (d) redesignated (c).

    Enacted provision · exact public law section
    (5) by redesignating subsections (b), (c), (d), (e), (f), and (g), as subsections (a), (b), (c), (d), (e), and (0, respectively.

  11. Agricultural Credit Act of 1987

    Pub. L. 100–233 § 805(n)(4) · 101 Stat. 1568

    1. Redesignated · 12 U.S.C. § 2132(f); 12 U.S.C. § 2132(g)

      Pub. L. 100–233, § 805(n)(4), (5), redesignated subsec. (g) as (f)

    2. Substituted · 12 U.S.C. § 2132(f); 12 U.S.C. § 2132(g)

      Pub. L. 100–233, § 805(n)(4), (5), substituted “A bank for cooperatives” for “For any year that a bank for cooperatives is subject to Federal income tax, it”

    3. Redesignated · 12 U.S.C. § 2132(f); 12 U.S.C. § 2132(g)

      Pub. L. 100–233, § 805(n)(4), (5), struck out “or (b)” after “subsection (a)”. Former subsec. (f) redesignated (e)

    Source evidence

    Code amendment note
    Subsecs. (f), (g). Pub. L. 100–233, § 805(n)(4), (5), redesignated subsec. (g) as (f), substituted “A bank for cooperatives” for “For any year that a bank for cooperatives is subject to Federal income tax, it”, and struck out “or (b)” after “subsection (a)”. Former subsec. (f) redesignated (e).

    Enacted provision · exact public law section
    (4) in subsection (g)— (A) by striking out “or (b)”; and (B) by striking out “For any year that a bank for cooperatives is subject to Federal income tax, it” and inserting in lieu thereof “A bank for cooperatives”; and

  12. Agriculture Improvement Act of 2018

    Pub. L. 115–334 § 5411(11)(A) · 132 Stat. 4490

    Substituted · 12 U.S.C. § 2132(a)

    Pub. L. 115–334, § 5411(11)(A), substituted “subsection (b)” for “subsections (b) and (c) of this section”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 115–334, § 5411(11)(A), substituted “subsection (b)” for “subsections (b) and (c) of this section”.

    Enacted provision · exact public law section
    (A) in subsection (a), in the first sentence, by striking “subsections (b) and (c) of this section” and inserting “subsection (b)”;

  13. Agriculture Improvement Act of 2018

    Pub. L. 115–334 § 5411(11)(B) · 132 Stat. 4490

    1. Struck · 12 U.S.C. § 2132(b)

      Pub. L. 115–334, § 5411(11)(B), struck out “district” before “bank for cooperatives”

    2. Substituted · 12 U.S.C. § 2132(b)

      Pub. L. 115–334, § 5411(11)(B), substituted “All patronage” for “Except as provided in subsection (c) below, all patronage”

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 115–334, § 5411(11)(B), struck out “district” before “bank for cooperatives” and substituted “All patronage” for “Except as provided in subsection (c) below, all patronage”.

    Enacted provision · exact public law section
    (B) in subsection (b)— (i) in the first sentence, by striking “district”; and (ii) in the second sentence, by striking “Except as provided in subsection (c) below, all” and inserting “All”;

  14. Agriculture Improvement Act of 2018

    Pub. L. 115–334 § 5411(11)(C) · 132 Stat. 4490

    1. Redesignated · 12 U.S.C. § 2132(c)(f)

      Pub. L. 115–334, § 5411(11)(C), (D), redesignated subsecs. (d) to (f) as (c) to (e), respectively

    2. Struck · 12 U.S.C. § 2132(c)(f)

      Pub. L. 115–334, § 5411(11)(C), (D), struck out former subsec. (c). Prior to amendment, text of subsec. (c) read as follows: “The net savings of the Central Bank for Cooperatives after the earnings for the fiscal year have been applied in accordance with subsection (a) of this section shall be paid in stock or cash, or both, as determined by the board, as patronage refunds to the district banks on the basis of interests held by the Central Bank in loans made by the district banks and upon any direct loans made by the Central Bank to cooperative associations, or on such other proportionate patronage basis as may be approved by the board of directors. In cases of direct loans, such refund shall be paid to the district bank or banks which issued their stock to the borrower incident to such loans, and the district bank or banks shall issue a like amount of patronage refunds to the borrower.”

    Source evidence

    Code amendment note
    Subsecs. (c) to (f). Pub. L. 115–334, § 5411(11)(C), (D), redesignated subsecs. (d) to (f) as (c) to (e), respectively, and struck out former subsec. (c). Prior to amendment, text of subsec. (c) read as follows: “The net savings of the Central Bank for Cooperatives after the earnings for the fiscal year have been applied in accordance with subsection (a) of this section shall be paid in stock or cash, or both, as determined by the board, as patronage refunds to the district banks on the basis of interests held by the Central Bank in loans made by the district banks and upon any direct loans made by the Central Bank to cooperative associations, or on such other proportionate patronage basis as may be approved by the board of directors. In cases of direct loans, such refund shall be paid to the district bank or banks which issued their stock to the borrower incident to such loans, and the district bank or banks shall issue a like amount of patronage refunds to the borrower.”

    Enacted provision · exact public law section
    (C) by striking subsection (c); and

15 of 23 references resolved to an enrolled provision · 8 partial

Editorial Notes

Amendments1980–2018 · 4 rounds

2018

Subsec. (a). Pub. L. 115–334, § 5411(11)(A), substituted “subsection (b)” for “subsections (b) and (c) of this section”.

Subsec. (b). Pub. L. 115–334, § 5411(11)(B), struck out “district” before “bank for cooperatives” and substituted “All patronage” for “Except as provided in subsection (c) below, all patronage”.

Subsecs. (c) to (f). Pub. L. 115–334, § 5411(11)(C), (D), redesignated subsecs. (d) to (f) as (c) to (e), respectively, and struck out former subsec. (c). Prior to amendment, text of subsec. (c) read as follows: “The net savings of the Central Bank for Cooperatives after the earnings for the fiscal year have been applied in accordance with subsection (a) of this section shall be paid in stock or cash, or both, as determined by the board, as patronage refunds to the district banks on the basis of interests held by the Central Bank in loans made by the district banks and upon any direct loans made by the Central Bank to cooperative associations, or on such other proportionate patronage basis as may be approved by the board of directors. In cases of direct loans, such refund shall be paid to the district bank or banks which issued their stock to the borrower incident to such loans, and the district bank or banks shall issue a like amount of patronage refunds to the borrower.”

1988

Subsec. (a). Pub. L. 100–233, §§ 802(r)(1), 805(n)(1), (5), redesignated subsec. (b) as (a), substituted “(b) and (c)” for “(c) and (d)”, struck out “as may be approved by the Farm Credit Administration” after “payment of operating expenses”, and struck out at end “If during the fiscal year but not at the end thereof a bank shall have had outstanding capital stock held by the United States, provision will be made for payment of franchise taxes required in section 2151 of this title.”

Subsec. (b). Pub. L. 100–233, §§ 802(r)(2), 805(n)(2), (5), redesignated subsec. (c) as (b) and substituted “(a) of this section” for “(b) of this section, whichever is applicable,”, “(c) below” for “(d) below”, and “may be approved by the board of directors” for “the Farm Credit Administration may approve”. Former subsec. (b) redesignated (a).

Subsec. (c). Pub. L. 100–233, §§ 802(r)(3), 805(n)(3), (5), redesignated subsec. (d) as (c) and substituted “(a) of this section” for “(b) of this section whichever is applicable,” and “may be approved by the board of directors” for “the Farm Credit Administration may approve”. Former subsec. (c) redesignated (b).

Subsecs. (d), (e). Pub. L. 100–233, § 805(n)(5), redesignated subsecs. (e) and (f) as (d) and (e), respectively. Former subsec. (d) redesignated (c).

Subsecs. (f), (g). Pub. L. 100–233, § 805(n)(4), (5), redesignated subsec. (g) as (f), substituted “A bank for cooperatives” for “For any year that a bank for cooperatives is subject to Federal income tax, it”, and struck out “or (b)” after “subsection (a)”. Former subsec. (f) redesignated (e).

1985

Subsec. (a). Pub. L. 99–205, § 205(e)(7), struck out subsec. (a) which provided for application of savings when bank for cooperatives has outstanding stock held by the Governor.

Subsec. (b). Pub. L. 99–205, § 205(e)(8)(A), substituted “At the end of each fiscal year, the net” for “Whenever at the end of any fiscal year a bank for cooperatives shall have no outstanding capital stock held by the Governor of the Farm Credit Administration, the net”.

Subsecs. (c), (d). Pub. L. 99–205, § 205(e)(8)(B), substituted “subsection (b) of this section” for “subsection (a) or (b) of this section”.

1980

Subsec. (b). Pub. L. 96–592, § 308(1), struck out provisions relating to 25 per centum requirement for net savings.

Subsec. (c). Pub. L. 96–592, § 308(2), inserted applicability to participation certificates and to borrowers to whom refunds are payable.

Statutory Notes and Related Subsidiaries

Effective Date of 1985 Amendment

Amendment by Pub. L. 99–205 effective thirty days after , see section 401 of Pub. L. 99–205, set out as a note under section 2001 of this title.

Credits

1971–2018 · 5 acts
  1. 1971Pub. L. 92–181, title III, § 3.11, , 85 Stat. 606
  2. 1980Pub. L. 96–592, title III, § 308, , 94 Stat. 3445
  3. 1985Pub. L. 99–205, title II, § 205(e)(7), (8), , 99 Stat. 1705
  4. 1988Pub. L. 100–233, title VIII, §§ 802(r), 805(n), , 101 Stat. 1712, 1716
  5. 2018Pub. L. 115–334, title V, § 5411(11), , 132 Stat. 4680.
Show as published

(Pub. L. 92–181, title III, § 3.11, , 85 Stat. 606; Pub. L. 96–592, title III, § 308, , 94 Stat. 3445; Pub. L. 99–205, title II, § 205(e)(7), (8), , 99 Stat. 1705; Pub. L. 100–233, title VIII, §§ 802(r), 805(n), , 101 Stat. 1712, 1716; Pub. L. 115–334, title V, § 5411(11), , 132 Stat. 4680.)

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