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‘‘(B) successful completion of a farm man-
agement curriculum offered by a cooperative ex-
tension service, a community college, an adult 
vocational agriculture program, a non-profit or-
ganization, or a land-grant college or university; 
‘‘(C) an honorable discharge from the armed 
forces of the United States; 
‘‘(D) successful repayment of a youth loan 
made under section 311(b); 
‘‘(E) at least 1 year as hired farm labor 
with substantial management responsibilities; 
‘‘(F) successful completion of a farm 
mentorship, apprenticeship, or internship pro-
gram with an emphasis on management require-
ments and day-to-day farm management deci-
sions; and 
‘‘(G) an established relationship with an in-
dividual participating as a counselor who has 
experience in farming or ranching or is a retired 
farmer or rancher in a Service Corps of Retired 
Executives program authorized under section 
8(b)(1)(B) of the Small Business Act (15 U.S.C. 
637(b)(1)(B)), or with a local farm or ranch op-
erator or organization, approved by the Sec-
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retary, that is committed to mentoring the farm-
er or rancher. 
‘‘(3) DEEMING
RULE.—For purposes of para-
graph (1), a farmer or rancher is deemed to have par-
ticipated in the business operations of a farm or 
ranch for not less than 3 years or have other accept-
able experience for a period of time, as determined by 
the Secretary, if the farmer or rancher meets the re-
quirements of subparagraphs (E) and (G) of para-
graph (2).’’. 
(b) CONFORMING AMENDMENT.—Section 310D(a)(2) 
of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1934(a)(2)) is amended by striking ‘‘paragraphs (2) 
through (4) of section 302’’ and inserting ‘‘subparagraphs 
(A) through (D) of section 302(a)(1)’’. 
SEC. 5102. CONSERVATION LOAN AND LOAN GUARANTEE 
PROGRAM. 
Section 304(h) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1924(h)) is amended by striking 
‘‘2018’’ and inserting ‘‘2023’’. 
SEC. 5103. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP 
LOANS. 
Section 305 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1925) is amended in subsection 
(a), by striking ‘‘smaller of’’ and all that follows through
408 
† HR 2 EAS 
the period at the end and inserting the following: ‘‘lesser 
of— 
‘‘(1) the value of the farm or other security; and 
‘‘(2) in the case of— 
‘‘(A) a loan other than a loan guaranteed 
by the Secretary, $600,000 for each of fiscal 
years 2019 through 2023; or 
‘‘(B) a loan guaranteed by the Secretary, 
subject to subsection (c), $1,750,000 for each of 
fiscal years 2019 through 2023.’’. 
Subtitle B—Operating Loans 
SEC. 5201. LIMITATIONS ON AMOUNT OF OPERATING 
LOANS. 
Section 313 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1943) is amended in subsection 
(a)(1), by striking ‘‘to exceed’’ and all that follows through 
‘‘Secretary);’’ and inserting the following: ‘‘to exceed, in the 
case of— 
‘‘(A) a loan other than a loan guaranteed 
by the Secretary, $400,000 for each of fiscal 
years 2019 through 2023; or 
‘‘(B) a loan guaranteed by the Secretary, 
subject to subsection (c), $1,750,000 for each of 
fiscal years 2019 through 2023;’’.
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SEC. 5202. COOPERATIVE LENDING PILOT PROJECTS. 
Section 313(c)(4)(A) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1943(c)(4)(A)) is amend-
ed by striking ‘‘2018’’ and inserting ‘‘2023’’. 
Subtitle C—Administrative 
Provisions 
SEC. 5301. BEGINNING FARMER AND RANCHER INDIVIDUAL 
DEVELOPMENT ACCOUNTS PILOT PROGRAM. 
Section 333B(h) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1983b(h)) is amended by strik-
ing ‘‘2018’’ and inserting ‘‘2023’’. 
SEC. 5302. LOAN AUTHORIZATION LEVELS. 
Section 346(b)(1) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1994(b)(1)) is amended— 
(1) in the matter preceding subparagraph (A), 
by striking ‘‘$4,226,000,000 for each of fiscal years 
2008 through 2018’’ and inserting ‘‘$12,000,000,000 
for each of fiscal years 2019 through 2023’’; and 
(2) by striking subparagraphs (A) and (B) and 
inserting the following: 
‘‘(A) $4,000,000,000 shall be for direct 
loans, of which— 
‘‘(i) $2,000,000,000 shall be for farm 
ownership loans under subtitle A; and 
‘‘(ii) $2,000,000,000 shall be for oper-
ating loans under subtitle B; and
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† HR 2 EAS 
‘‘(B) $8,000,000,000 shall be for guaranteed 
loans, of which— 
‘‘(i) $4,000,000,000 shall be for farm 
ownership loans under subtitle A; and 
‘‘(ii) $4,000,000,000 shall be for oper-
ating loans under subtitle B.’’. 
SEC. 5303. LOAN FUND SET-ASIDES. 
Section 346(b)(2)(A)(ii)(III) of the Consolidated Farm 
and 
Rural 
Development 
Act 
(7 
U.S.C. 
1994(b)(2)(A)(ii)(III)) is amended by striking ‘‘2018’’ and 
inserting ‘‘2023’’. 
SEC. 5304. EQUITABLE RELIEF. 
The Consolidated Farm and Rural Development Act 
is amended by inserting after section 365 (7 U.S.C. 2008) 
the following: 
‘‘SEC. 366. EQUITABLE RELIEF. 
‘‘(a) IN GENERAL.—Subject to subsection (b), the Sec-
retary may provide a form of relief described in subsection 
(c) to any farmer or rancher who— 
‘‘(1) received a direct farm ownership, operating, 
or emergency loan under this title; and 
‘‘(2) the Secretary determines is not in compli-
ance with the requirements of this title with respect 
to the loan.
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† HR 2 EAS 
‘‘(b) LIMITATION.—The Secretary may only provide 
relief to a farm or rancher under subsection (a) if the Sec-
retary determines that the farmer or rancher— 
‘‘(1) acted in good faith; and 
‘‘(2) relied on an action of, or the advice of, the 
Secretary (including any authorized representative of 
the Secretary) to the detriment of the farming or 
ranching operation of the farmer or rancher. 
‘‘(c) FORMS OF RELIEF.—The Secretary may provide 
to a farmer or rancher under subsection (a) any of the fol-
lowing forms of relief: 
‘‘(1) The farmer or rancher may retain loans or 
other benefits received in association with the loan 
with respect to which the farmer or rancher was de-
termined to be noncompliant under subsection (a)(2). 
‘‘(2) The farmer or rancher may receive such 
other equitable relief as the Secretary determines to be 
appropriate. 
‘‘(d) CONDITION.—As a condition of receiving relief 
under this section, the Secretary may require the farmer 
or rancher to take actions designed to remedy the non-
compliance. 
‘‘(e) ADMINISTRATIVE APPEAL; JUDICIAL REVIEW.— 
A determination or action of the Secretary under this sec-
tion—
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† HR 2 EAS 
‘‘(1) shall be final; and 
‘‘(2) shall not be subject to administrative appeal 
or judicial review under chapter 7 of title 5, United 
States Code.’’. 
SEC. 5305. SOCIALLY DISADVANTAGED FARMERS AND 
RANCHERS; QUALIFIED BEGINNING FARMERS 
AND RANCHERS. 
The Consolidated Farm and Rural Development Act 
is amended by inserting after section 366 (as added by sec-
tion 5304) the following: 
‘‘SEC. 
367. 
SOCIALLY 
DISADVANTAGED 
FARMERS 
AND 
RANCHERS; QUALIFIED BEGINNING FARMERS 
AND RANCHERS. 
‘‘In the case of a loan guaranteed by the Secretary 
under subtitle A or B to a socially disadvantaged farmer 
or rancher (as defined in section 355(e)) or a qualified be-
ginning farmer or rancher, the Secretary shall— 
‘‘(1) waive the guarantee fee of 1.5 percent; and 
‘‘(2) provide for a standard guarantee plan, 
which shall cover an amount equal to 95 percent of 
the outstanding principal of the loan.’’. 
SEC. 5306. EMERGENCY LOAN ELIGIBILITY. 
Section 373(b)(2)(B) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2008h(b)(2)(B)) is 
amended—
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† HR 2 EAS 
(1) by redesignating clauses (i) and (ii) as sub-
clauses (I) and (II), respectively, and indenting ap-
propriately; 
(2) in the matter preceding subclause (I) (as so 
redesignated), by striking ‘‘The Secretary’’ and insert-
ing the following: 
‘‘(i) IN
GENERAL.—The Secretary’’; 
and 
(3) by adding at the end the following: 
‘‘(ii) 
RESTRUCTURED
LOANS.—For 
purposes of clause (i), a borrower who was 
restructured with a write-down or restruc-
turing under section 353 shall not be con-
sidered to have received debt forgiveness on 
a loan made or guaranteed under this 
title.’’. 
Subtitle D—Miscellaneous 
SEC. 5401. STATE AGRICULTURAL MEDIATION PROGRAMS. 
(a) ISSUES COVERED
BY STATE MEDIATION PRO-
GRAMS.—Section 501(c) of the Agricultural Credit Act of 
1987 (7 U.S.C. 5101(c)) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (B)—
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(i) in the matter preceding clause (i), 
by striking ‘‘under the jurisdiction of the 
Department of Agriculture’’; 
(ii) in clause (ii), by inserting ‘‘and 
the national organic program established 
under the Organic Foods Production Act of 
1990 (7 U.S.C. 6501 et seq.)’’ before the pe-
riod at the end; and 
(iii) by striking clause (vii) and in-
serting the following: 
‘‘(vii) Lease issues, including land 
leases and equipment leases. 
‘‘(viii) Family farm transition. 
‘‘(ix) Farmer-neighbor disputes. 
‘‘(x) Such other issues as the Secretary 
or the head of the department of agriculture 
of each participating State considers appro-
priate for better serving the agricultural 
community and persons eligible for medi-
ation.’’; and 
(B) by adding at the end the following: 
‘‘(C) MEDIATION SERVICES.—Funding pro-
vided for the mediation program of a qualifying 
State may also be used to provide credit coun-
seling to persons described in paragraph (2)—
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† HR 2 EAS 
‘‘(i) prior to the initiation of any me-
diation involving the Department of Agri-
culture; or 
‘‘(ii) unrelated to any ongoing dispute 
or mediation in which the Department of 
Agriculture is a party.’’; 
(2) in paragraph (2)(A)— 
(A) in clause (ii), by striking ‘‘and’’ after 
the semicolon; 
(B) in clause (iii), by striking the period at 
the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(iv) any other persons involved in an 
issue described in any of clauses (i) through 
(x) of paragraph (1)(B).’’; and 
(3) in paragraph (3)(F), by striking ‘‘that per-
sons’’ and inserting the following: ‘‘that— 
‘‘(i) the Department of Agriculture re-
ceives adequate notification of those issues; 
and 
‘‘(ii) persons’’. 
(b) REPORT REQUIRED.—Section 505 of the Agricul-
tural Credit Act of 1987 (7 U.S.C. 5105) is amended to 
read as follows:
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† HR 2 EAS 
‘‘SEC. 505. REPORT. 
‘‘Not later than 2 years after the date of enactment 
of the Agriculture Improvement Act of 2018, the Secretary 
shall submit to Congress a report describing— 
‘‘(1) the effectiveness of the State mediation pro-
grams receiving matching grants under this subtitle; 
‘‘(2) recommendations for improving the delivery 
of mediation services to producers; 
‘‘(3) the steps being taken to ensure that State 
mediation programs receive timely funding under this 
subtitle; and 
‘‘(4) the savings to the States as a result of hav-
ing a mediation program.’’. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—Section 
506 of the Agricultural Credit Act of 1987 (7 U.S.C. 5106) 
is amended by striking ‘‘2018’’ and inserting ‘‘2023’’. 
SEC. 5402. SOCIALLY DISADVANTAGED FARMERS AND 
RANCHERS. 
(a) IN GENERAL.—Section 4.19 of the Farm Credit 
Act of 1971 (12 U.S.C. 2207) is amended— 
(1) by striking the section designation and head-
ing and inserting the following:
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† HR 2 EAS 
‘‘SEC. 4.19. YOUNG, BEGINNING, SMALL, AND SOCIALLY DIS-
ADVANTAGED FARMERS AND RANCHERS.’’; 
and 
(2) in subsection (a), in the first sentence, by 
striking ‘‘ranchers.’’ and inserting ‘‘ranchers and so-
cially disadvantaged farmers or ranchers (as defined 
in section 2501(e) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 2279(e))).’’. 
(b) CONFORMING AMENDMENT.—Section 5.17(a)(3) of 
the Farm Credit Act of 1971 (12 U.S.C. 2252(a)(3)) is 
amended, in the second sentence, by striking ‘‘ranchers.’’ 
and inserting ‘‘ranchers and socially disadvantaged farmers 
or ranchers (as defined in section 2501(e) of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (7 U.S.C. 
2279(e))).’’. 
SEC. 5403. SHARING OF PRIVILEGED AND CONFIDENTIAL 
INFORMATION. 
Section 5.19 of the Farm Credit Act of 1971 (12 U.S.C. 
2254) is amended by adding at the end the following: 
‘‘(e) SHARING OF PRIVILEGED AND CONFIDENTIAL IN-
FORMATION.—A System institution shall not be considered 
to have waived the confidentiality of a privileged commu-
nication with an attorney or an accountant if the System 
institution provides the content of the communication to the 
Farm Credit Administration pursuant to the supervisory
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† HR 2 EAS 
or regulatory authorities of the Farm Credit Administra-
tion.’’. 
SEC. 5404. REMOVAL AND PROHIBITION AUTHORITY; IN-
DUSTRY-WIDE PROHIBITION. 
Part C of title V of the Farm Credit Act of 1971 is 
amended by inserting after section 5.29 (12 U.S.C. 2265) 
the following: 
‘‘SEC. 5.29A. REMOVAL AND PROHIBITION AUTHORITY; IN-
DUSTRY-WIDE PROHIBITION. 
‘‘(a) DEFINITION OF PERSON.—In this section, the 
term ‘person’ means— 
‘‘(1) an individual; and 
‘‘(2) in the case of a specific determination by 
the Farm Credit Administration, a legal entity. 
‘‘(b) INDUSTRY-WIDE PROHIBITION.—Except as pro-
vided in subsection (c), any person who, pursuant to an 
order issued under section 5.28 or 5.29, has been removed 
or suspended from office at a System institution or prohib-
ited from participating in the conduct of the affairs of a 
System institution shall not, during the period of effective-
ness of the order, continue or commence to hold any office 
in, or participate in any manner in the conduct of the af-
fairs of—
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† HR 2 EAS 
the affairs of a System institution, that party re-
ceives written consent described in subparagraph 
(B), subsection (b) shall not apply to that 
party— 
‘‘(i) to the extent provided in the writ-
ten consent received; and 
‘‘(ii) with respect to the institution de-
scribed in each written consent. 
‘‘(B) WRITTEN CONSENT DESCRIBED.—The 
written consent referred to in subparagraph (A) 
is written consent received from— 
‘‘(i) the Farm Credit Administration; 
and 
‘‘(ii) each appropriate Federal finan-
cial institutions regulatory agency (as de-
fined in section 8(e)(7)(D) of the Federal 
Deposit 
Insurance 
Act 
(12 
U.S.C. 
1818(e)(7)(D))) of the applicable institution 
described in any of paragraphs (1), (2), (3), 
or (4) of subsection (b) with respect to 
which the party proposes to be become an 
affiliated party. 
‘‘(2) DISCLOSURE.—Any agency described in 
clause (i) or (ii) of paragraph (1)(B) that provides a 
written consent under that paragraph shall—
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† HR 2 EAS 
‘‘(A) report the action to the Farm Credit 
Administration; and 
‘‘(B) publicly disclose the action. 
‘‘(3) CONSULTATION BETWEEN AGENCIES.—The 
agencies described in clauses (i) and (ii) of paragraph 
(1)(B) shall consult with each other before providing 
any written consent under that paragraph. 
‘‘(d) VIOLATIONS.—A violation of subsection (b) by 
any person who is subject to an order described in that sub-
section shall be treated as violation of that order.’’. 
SEC. 5405. JURISDICTION OVER INSTITUTION-AFFILIATED 
PARTIES. 
Part C of title V of the Farm Credit Act of 1971 is 
amended by inserting after section 5.31 (12 U.S.C. 2267) 
the following: 
‘‘SEC. 5.31A. JURISDICTION OVER INSTITUTION-AFFILIATED 
PARTIES. 
‘‘(a) IN GENERAL.—For purposes of sections 5.25, 
5.26, and 5.32, the jurisdiction of the Farm Credit Admin-
istration over parties, and the authority of the Farm Credit 
Administration to initiate actions, shall include enforce-
ment authority over institution-affiliated parties. 
‘‘(b) EFFECT OF SEPARATION ON JURISDICTION AND 
AUTHORITY.—Subject to subsection (c), the resignation, ter-
mination of employment or participation, or separation of
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† HR 2 EAS 
an institution-affiliated party (including a separation 
caused by the merger, consolidation, conservatorship, or re-
ceivership of a Farm Credit System institution) shall not 
affect the jurisdiction and authority of the Farm Credit Ad-
ministration to issue any notice or order and proceed under 
this part against that party. 
‘‘(c) LIMITATION.—To proceed against a party under 
subsection (b), the notice or order described in that sub-
section shall be served not later than 6 years after the date 
on which the party ceased to be an institution-affiliated 
party with respect to the applicable Farm Credit System 
institution. 
‘‘(d) APPLICABILITY.—The date on which a party 
ceases to be an institution-affiliated party described in sub-
section (c) may occur before, on, or after the date of enact-
ment of this section.’’. 
SEC. 
5406. 
DEFINITION 
OF 
INSTITUTION-AFFILIATED 
PARTY. 
Section 5.35 of the Farm Credit Act of 1971 (12 U.S.C. 
2271) is amended— 
(1) in paragraph (3), by striking ‘‘and’’ at the 
end; 
(2) by redesignating paragraph (4) as para-
graph (5); and
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† HR 2 EAS 
(3) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) 
the 
term 
‘institution-affiliated 
party’ 
means— 
‘‘(A) a director, officer, employee, share-
holder, or agent of a System institution; 
‘‘(B) an independent contractor (including 
an attorney, appraiser, or accountant) who 
knowingly or recklessly participates in— 
‘‘(i) a violation of law (including regu-
lations) that is associated with the oper-
ations and activities of 1 or more System 
institutions; 
‘‘(ii) a breach of fiduciary duty; or 
‘‘(iii) an unsafe practice that causes or 
is likely to cause more than a minimum fi-
nancial loss to, or a significant adverse ef-
fect on, a System institution; and 
‘‘(C) any other person, as determined by the 
Farm Credit Administration (by regulation or 
on a case-by-case basis) who participates in the 
conduct of the affairs of a System institution; 
and’’.
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† HR 2 EAS 
SEC. 5407. REPEAL OF OBSOLETE PROVISIONS; TECHNICAL 
CORRECTIONS. 
(1) Section 1.1(c) of the Farm Credit Act of 1971 
(12 U.S.C. 2001(c)) is amended in the first sentence 
by striking ‘‘including any costs of defeasance under 
section 4.8(b),’’. 
(2) Section 1.2 of the Farm Credit Act of 1971 
(12 U.S.C. 2002) is amended by striking subsection 
(a) and inserting the following: 
‘‘(a) COMPOSITION.—The Farm Credit System shall 
include the Farm Credit Banks, the bank for cooperatives, 
Agricultural Credit Banks, the Federal Land Bank Associa-
tions, the Federal Land Credit Associations, the Production 
Credit Associations, the agricultural credit associations, the 
Federal Farm Credit Banks Funding Corporation, the Fed-
eral Agricultural Mortgage Corporation, service corpora-
tions established pursuant to section 4.25, and such other 
institutions as may be made a part of the Farm Credit 
System, all of which shall be chartered by and subject to 
regulation by the Farm Credit Administration.’’. 
(3) Section 2.4 of the Farm Credit Act of 1971 
(12 U.S.C. 2075) is amended by striking subsection 
(d). 
(4) Section 3.0(a) of the Farm Credit Act of 
1971 (12 U.S.C. 2121(a)) is amended—
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† HR 2 EAS 
(A) in the third sentence, by striking ‘‘and 
a Central Bank for Cooperatives’’; and 
(B) by striking the fifth sentence. 
(5) Section 3.2 of the Farm Credit Act of 1971 
(12 U.S.C. 2123) is amended— 
(A) in subsection (a)— 
(i) in paragraph (1), by striking ‘‘not 
merged into the United Bank for Coopera-
tives or the National Bank for Coopera-
tives’’; and 
(ii) in paragraph (2)(A), in the matter 
preceding clause (i), by striking ‘‘(other 
than the National Bank for Cooperatives)’’; 
(B) by striking subsection (b); 
(C) in subsection (a)— 
(i) by striking ‘‘(a)(1) Each bank’’ and 
inserting the following: 
‘‘(a) IN GENERAL.—Each bank’’; and 
(ii) by striking ‘‘(2)(A) If approved’’ 
and inserting the following: 
‘‘(b) NOMINATION AND ELECTION.— 
‘‘(1) IN GENERAL.—If approved’’; 
(D) in subsection (b)(1) (as so des-
ignated)—
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† HR 2 EAS 
(i) in subparagraph (B), by striking 
‘‘(B) The total’’ and inserting the following: 
‘‘(2) NUMBER OF VOTES.—The total’’; and 
(ii) by redesignating clauses (i) and 
(ii) as subparagraphs (A) and (B), respec-
tively, and indenting appropriately; and 
(E) in paragraph (2) (as so designated), by 
striking 
‘‘paragraph’’ 
and 
inserting 
‘‘sub-
section’’. 
(6) Section 3.5 of the Farm Credit Act of 1971 
(12 U.S.C. 2126) is amended in the third sentence by 
striking ‘‘district’’. 
(7) Section 3.7(a) of the Farm Credit Act of 
1971 (12 U.S.C. 2128(a)) is amended by striking the 
second sentence. 
(8) Section 3.8(b)(1)(A) of the Farm Credit Act 
of 1971 (12 U.S.C. 2129(b)(1)(A)) is amended by in-
serting ‘‘(or any successor agency)’’ after ‘‘Rural 
Electrification Administration’’. 
(9) Section 3.9(a) of the Farm Credit Act of 
1971 (12 U.S.C. 2130(a)) is amended by striking the 
third sentence. 
(10) Section 3.10 of the Farm Credit Act of 1971 
(12 U.S.C. 2131) is amended—
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† HR 2 EAS 
(A) in subsection (c), by striking the second 
sentence; and 
(B) in subsection (d)— 
(i) by striking ‘‘district’’ each place it 
appears; and 
(ii) by inserting ‘‘for cooperatives (or 
any successor bank)’’ before ‘‘on account’’. 
(11) Section 3.11 of the Farm Credit Act of 1971 
(12 U.S.C. 2132) is amended— 
(A) in subsection (a), in the first sentence, 
by striking ‘‘subsections (b) and (c) of this sec-
tion’’ and inserting ‘‘subsection (b)’’; 
(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’’; 
(C) by striking subsection (c); and 
(D) 
by 
redesignating 
subsections 
(d) 
through (f) as subsections (c) through (e), respec-
tively. 
(12) Part B of title III of the Farm Credit Act 
of 1971 (12 U.S.C. 2141 et seq.) is amended in the 
part heading by striking ‘‘UNITED AND’’.
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† HR 2 EAS 
(13) Section 3.20 of the Farm Credit Act of 1971 
(12 U.S.C. 2141) is amended— 
(A) in subsection (a), by striking ‘‘or the 
United Bank for Cooperatives, as the case may 
be’’; and 
(B) in subsection (b), by striking ‘‘the dis-
trict banks for cooperatives and the Central 
Bank for Cooperatives’’ and inserting ‘‘the con-
stituent banks described in section 413(b) of the 
Agricultural Credit Act of 1987 (12 U.S.C. 2121 
note; Public Law 100–233)’’. 
(14) Section 3.21 of the Farm Credit Act of 1971 
(12 U.S.C. 2142) is repealed. 
(15) Section 3.28 of the Farm Credit Act of 1971 
(12 U.S.C. 2149) is amended by striking ‘‘a district 
bank for cooperatives and the Central Bank for Co-
operatives’’ and inserting ‘‘the constituent banks de-
scribed in section 413(b) of the Agricultural Credit 
Act of 1987 (12 U.S.C. 2121 note; Public Law 100– 
233)’’. 
(16) Section 3.29 of the Farm Credit Act of 1971 
(12 U.S.C. 2149a) is repealed. 
(17) Section 4.0 of the Farm Credit Act of 1971 
(12 U.S.C. 2151) is repealed.
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† HR 2 EAS 
(18) Section 4.8 of the Farm Credit Act of 1971 
(12 U.S.C. 2159) is amended— 
(A) by striking the section designation and 
heading and all that follows through ‘‘Each 
bank’’ in subsection (a) and inserting the fol-
lowing: 
‘‘SEC. 4.8. PURCHASE AND SALE OF OBLIGATIONS. 
‘‘Each bank’’; and 
(B) by striking subsection (b). 
(19) Section 4.9 of the Farm Credit Act of 1971 
(12 U.S.C. 2160) is amended— 
(A) in subsection (d)— 
(i) by striking paragraph (2) and in-
serting the following: 
‘‘(3) REPRESENTATION OF BOARD.—The Farm 
Credit System Insurance Corporation shall not have 
representation on the board of directors of the Cor-
poration.’’; 
(ii) in the undesignated matter fol-
lowing paragraph (1)(D), by striking ‘‘In 
selecting’’ and inserting the following: 
‘‘(2) CONSIDERATIONS.—In selecting’’; and 
(iii) in paragraph (2) (as so des-
ignated), by inserting ‘‘of paragraph (1)’’ 
after ‘‘(A) and (B)’’;
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† HR 2 EAS 
(B) by striking subsection (e); and 
(C) by redesignating subsection (f) as sub-
section (e). 
(20) Section 4.9A(c) of the Farm Credit Act of 
1971 (12 U.S.C. 2162(c)) is amended— 
(A) by striking ‘‘institution, and—’’ in the 
matter preceding paragraph (1) and all that fol-
lows through the period at the end of paragraph 
(2) and inserting ‘‘institution.’’; 
(B) by striking ‘‘If an institution’’ and in-
serting the following: 
‘‘(1) IN GENERAL.—If an institution’’; 
(C) in paragraph (1) (as so designated), by 
striking ‘‘the receiver of the institution’’ and in-
serting ‘‘the Farm Credit System Insurance Cor-
poration, acting as receiver,’’; and 
(D) by adding at the end the following: 
‘‘(2) FUNDING.—The Farm Credit System Insur-
ance Corporation shall use such funds from the Farm 
Credit Insurance Fund as are sufficient to carry out 
this section.’’. 
(21) Section 4.12A(a) of the Farm Credit Act of 
1971 (12 U.S.C. 2184(a)) is amended by striking 
paragraph (1) and inserting the following:
431 
† HR 2 EAS 
‘‘(1) IN GENERAL.—A Farm Credit System bank 
or association shall provide to a stockholder of the 
bank or association a current list of stockholders of 
the bank or association not later than 7 calendar 
days after the date on which the bank or association 
receives a written request for the stockholder list from 
the stockholder.’’. 
(22) Section 4.14A of the Farm Credit Act of 
1971 (12 U.S.C. 2202a) is amended— 
(A) in subsection (a)— 
(i) in the matter preceding paragraph 
(1), by inserting ‘‘and section 4.36’’ before 
the colon at the end; and 
(ii) in paragraph (5)(B)(ii)(I), by 
striking ‘‘4.14C,’’; 
(B) by striking subsection (h); 
(C) by redesignating subsections (i) through 
(l) as subsections (h) through (k), respectively; 
and 
(D) in subsection (k) (as so redesignated), 
by striking ‘‘production credit’’. 
(23) Section 4.14C of the Farm Credit Act of 
1971 (12 U.S.C. 2202c) is repealed.
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† HR 2 EAS 
(24) Section 4.17 of the Farm Credit Act of 1971 
(12 U.S.C. 2205) is amended in the third sentence by 
striking ‘‘Federal intermediate credit banks and’’. 
(25) Section 4.19(a) of the Farm Credit Act of 
1971 (12 U.S.C. 2207(a)) (as amended by section 
5402(a)(2)) is amended— 
(A) in the first sentence— 
(i) by striking ‘‘district’’; and 
(ii) by striking ‘‘Federal land bank as-
sociation and production credit’’; and 
(B) in the second sentence, by striking 
‘‘units’’ and inserting ‘‘institutions’’. 
(26) Section 4.38 of the Farm Credit Act of 1971 
(12 U.S.C. 2219c) is amended by striking ‘‘The As-
sistance Board established under section 6.0 and all’’ 
and inserting ‘‘All’’. 
(27) Section 4.39 of the Farm Credit Act of 1971 
(12 U.S.C. 2219d) is amended by striking ‘‘8.0(7))’’ 
and inserting ‘‘8.0)’’. 
(28) Section 5.16 of the Farm Credit Act of 1971 
(12 U.S.C. 2251) is amended— 
(A) by striking the section designation and 
heading and all that follows through ‘‘As an al-
ternate’’ in the matter preceding paragraph (1) 
and inserting the following:
433 
† HR 2 EAS 
‘‘SEC. 5.16. OFFICES, QUARTERS, AND FACILITIES FOR THE 
FARM CREDIT ADMINISTRATION. 
‘‘(a) OFFICES.—The Farm Credit Administration 
shall maintain— 
‘‘(1) the principal office of the Farm Credit Ad-
ministration within the Washington-Arlington-Alex-
andria, DC–VA–MD–WV Metropolitan Statistical 
Area, as defined by the Office of Management and 
Budget; and 
‘‘(2) such other offices in the United States as the 
Farm Credit Administration determines are nec-
essary. 
‘‘(b) QUARTERS AND FACILITIES.—As an alternative’’; 
and 
(B) in the undesignated matter following 
paragraph (5) of subsection (b) (as so des-
ignated)— 
(i) in the fifth sentence, by striking ‘‘In 
actions undertaken by the banks pursuant 
to the foregoing provisions of this section’’ 
and inserting the following: 
‘‘(5) AGENT FOR BANKS.—In actions undertaken 
by the banks pursuant to this section’’; 
(ii) in the fourth sentence, by striking 
‘‘The plans’’ and inserting the following: 
‘‘(4) APPROVAL OF BOARD.—The plans’’;
434 
† HR 2 EAS 
(iii) in the third sentence, by striking 
‘‘The powers’’ and inserting the following: 
‘‘(3) POWERS OF BANKS.—The powers’’; 
(iv) in the second sentence, by striking 
‘‘Such advances’’ and inserting the fol-
lowing: 
‘‘(2) ADVANCES.—The advances of funds de-
scribed in paragraph (1)’’; and 
(v) in the first sentence, by striking 
‘‘The Board’’ and inserting the following: 
‘‘(c) FINANCING.— 
‘‘(1) IN GENERAL.—The Board’’. 
(29) Section 5.17(a)(2) of the Farm Credit Act 
of 1971 (12 U.S.C. 2252(a)(2)) is amended by strik-
ing the second and third sentences. 
(30) Section 5.18 of the Farm Credit Act of 1971 
(12 U.S.C. 2253) is repealed. 
(31) Section 5.19 of the Farm Credit Act of 1971 
(12 U.S.C. 2254) is amended— 
(A) in subsection (a)— 
(i) in the first sentence, by striking 
‘‘Except for Federal land bank associations, 
each’’ and inserting ‘‘Each’’; and 
(ii) by striking the second sentence; 
and
435 
† HR 2 EAS 
(B) in subsection (b)— 
(i) by striking ‘‘(b)(1) Each’’ and in-
serting ‘‘(b) Each’’; 
(ii) in the matter preceding paragraph 
(2) (as so designated)— 
(I) in the second sentence, by 
striking ‘‘, except with respect to any 
actions taken by any banks of the Sys-
tem under section 4.8(b),’’; and 
(II) by striking the third sentence; 
and 
(iii) by striking paragraphs (2) and 
(3). 
(32) Section 5.31 of the Farm Credit Act of 1971 
(12 U.S.C. 2267) is amended in the second sentence 
by striking ‘‘4.14A(i)’’ and inserting ‘‘4.14A(h)’’. 
(33) Section 5.32(h) of the Farm Credit Act of 
1971 (12 U.S.C. 2268(h)) is amended by striking 
‘‘4.14A(i)’’ and inserting ‘‘4.14A(h)’’. 
(34) Section 5.35 of the Farm Credit Act of 1971 
(12 U.S.C. 2271) is amended in paragraph (5) (as re-
designated by section 5406(2))— 
(A) in subparagraph (A), by adding ‘‘and’’ 
at the end; 
(B) by striking subparagraph (B);
436 
† HR 2 EAS 
(C) by redesignating subparagraph (C) as 
subparagraph (B); and 
(D) in subparagraph (B) (as so redesig-
nated)— 
(i) by striking ‘‘after December 31, 
1992,’’; and 
(ii) by striking ‘‘by the Farm Credit 
System Assistance Board under section 6.6 
or’’. 
(35) Section 5.38 of the Farm Credit Act of 1971 
(12 U.S.C. 2274) is amended by striking ‘‘a farm’’ 
and all that follows through ‘‘land bank’’ and insert-
ing ‘‘a Farm Credit Bank board, officer, or employee 
shall not remove any director or officer of any’’. 
(36) Section 5.44 of the Farm Credit Act of 1971 
(12 U.S.C. 2275) is repealed. 
(37) Section 5.58(2) of the Farm Credit Act of 
1971 (12 U.S.C. 2277a–7(2)) is amended by striking 
the second sentence. 
(38) Section 5.60 of the Farm Credit Act of 1971 
(12 U.S.C. 2277a–9) is amended— 
(A) in subsection (b), by striking the sub-
section designation and heading and all that fol-
lows through ‘‘The Corporation’’ in paragraph 
(2) and inserting the following:
437 
† HR 2 EAS 
‘‘(b) AMOUNTS IN FUND.—The Corporation’’; and 
(B) in subsection (c)(2), by striking ‘‘Insur-
ance Fund to—’’ in the matter preceding sub-
paragraph (A) and all that follows through ‘‘en-
sure’’ in subparagraph (B) and inserting ‘‘In-
surance Fund to ensure’’. 
(39) Title VI of the Farm Credit Act of 1971 (12 
U.S.C. 2278a et seq.) is repealed. 
(40) Section 7.9 of the Farm Credit Act of 1971 
(12 U.S.C. 2279c–2) is amended by striking sub-
section (c). 
(41) Section 7.10(a) of the Farm Credit Act of 
1971 (12 U.S.C. 2279d(a)) is amended by striking 
paragraph (4) and inserting the following: 
‘‘(4) the institution pays to the Farm Credit In-
surance Fund the amount by which the total capital 
of the institution exceeds 6 percent of the assets;’’. 
(42) Section 8.0 of the Farm Credit Act of 1971 
(12 U.S.C. 2279aa) is amended— 
(A) in paragraph (2), by striking ‘‘means— 
’’ in the matter preceding subparagraph (A) and 
all that follows through the period at the end of 
the undesignated matter following subparagraph 
(B) and inserting ‘‘means the board of directors 
established under section 8.2.’’;
438 
† HR 2 EAS 
(B) by striking paragraphs (6) and (8); 
(C) by redesignating paragraphs (7), (9), 
and (10) as paragraphs (6), (7), and (8), respec-
tively; and 
(D) in subparagraph (B)(i) of paragraph 
(7) (as so redesignated), by striking ‘‘(b) through 
(d)’’ and inserting ‘‘(b) and (c)’’. 
(43) Section 8.2 of the Farm Credit Act of 1971 
(12 U.S.C. 2279aa–2) is amended— 
(A) by striking subsection (a); 
(B) in subsection (b), by striking the sub-
section designation and heading and all that fol-
lows through the period at the end of paragraph 
(1) and inserting the following: 
‘‘(a) IN GENERAL.— 
‘‘(1) ESTABLISHMENT.—The Corporation shall 
be under the management of the board of directors.’’; 
(C) in subsection (a) (as so designated)— 
(i) by striking ‘‘permanent board’’ each 
place it appears and inserting ‘‘Board’’; 
(ii) by striking paragraph (3); 
(iii) by redesignating paragraphs (4) 
through (10) as paragraphs (3) through (9), 
respectively; and
439 
† HR 2 EAS 
(iv) in paragraph (3)(A) (as so redes-
ignated), by striking ‘‘(6)’’ and inserting 
‘‘(5)’’; and 
(D) by redesignating subsection (c) as sub-
section (b). 
(44) Section 8.4(a)(1) of the Farm Credit Act of 
1971 (12 U.S.C. 2279aa–4(a)(1)) is amended— 
(A) in the sixth sentence— 
(i) by striking ‘‘Class B’’ and inserting 
the following: 
‘‘(iii) CLASS B STOCK.—Class B’’; and 
(ii) by striking ‘‘8.2(b)(2)(B)’’ and in-
serting ‘‘8.2(a)(2)(B)’’; 
(B) in the fifth sentence— 
(i) by striking ‘‘Class A’’ and inserting 
the following: 
‘‘(ii) CLASS A STOCK.—Class A’’; and 
(ii) by striking ‘‘8.2(b)(2)(A)’’ and in-
serting ‘‘8.2(a)(2)(A)’’; 
(C) in the fourth sentence, by striking ‘‘The 
stock’’ and inserting the following: 
‘‘(D) CLASSES OF STOCK.— 
‘‘(i) IN GENERAL.—The stock’’; 
(D) by striking the third sentence and in-
serting the following:
440 
† HR 2 EAS 
‘‘(C) OFFERS.— 
‘‘(i) IN
GENERAL.—The Board shall 
offer the voting common stock to banks, 
other financial institutions, insurance com-
panies, and System institutions under such 
terms and conditions as the Board may 
adopt. 
‘‘(ii) 
REQUIREMENTS.—The 
voting 
common stock shall be fairly and broadly 
offered to ensure that— 
‘‘(I) no institution or institutions 
acquire a disproportionate share of the 
total quantity of the voting common 
stock outstanding of a class of stock; 
and 
‘‘(II) capital contributions and 
issuances of voting common stock for 
the contributions are fairly distributed 
between entities eligible to hold class A 
stock and class B stock.’’; 
(E) in the second sentence, by striking 
‘‘Each share’’ and inserting the following: 
‘‘(B) NUMBER
OF
VOTES.—Each share’’; 
and
441 
† HR 2 EAS 
(F) in the first sentence, by striking ‘‘The 
Corporation’’ and inserting the following: 
‘‘(A) IN GENERAL.—The Corporation’’. 
(45) Section 8.6 of the Farm Credit Act of 1971 
(12 U.S.C. 2279aa–6) is amended— 
(A) by striking subsection (d); 
(B) by redesignating subsection (e) as sub-
section (d); and 
(C) in paragraph (2) of subsection (d) (as 
so redesignated), by striking ‘‘8.0(9))’’ and in-
serting ‘‘8.0)’’. 
(46) Section 8.9 of the Farm Credit Act of 1971 
(12 U.S.C. 2279aa–9) is amended by striking 
‘‘4.14C,’’ each place it appears. 
(47) Section 8.11(e) of the Farm Credit Act of 
1971 (12 U.S.C. 2279aa–11(e)) is amended by strik-
ing ‘‘8.0(7))’’ and inserting ‘‘8.0)’’. 
(48) Section 8.32(a) of the Farm Credit Act of 
1971 (12 U.S.C. 2279bb–1(a)) is amended— 
(A) in the first sentence of the matter pre-
ceding paragraph (1), by striking ‘‘Not sooner 
than the expiration of the 3-year period begin-
ning on the date of enactment of the Farm Cred-
it System Reform Act of 1996, the’’ and insert-
ing ‘‘The’’; and
442 
† HR 2 EAS 
(B) in paragraph (1)(B), by striking 
‘‘8.0(9)(C)’’ and inserting ‘‘8.0(7)(C)’’. 
(49) Section 8.33(b)(2)(A) of the Farm Credit 
Act of 1971 (12 U.S.C. 2279bb–2(b)(2)(A)) is amend-
ed by striking ‘‘8.6(e)’’ and inserting ‘‘8.6(d)’’. 
(50) Section 8.35 of the Farm Credit Act of 1971 
(12 U.S.C. 2279bb–4) is amended by striking sub-
section (e). 
(51) Section 8.38 of the Farm Credit Act of 1971 
(12 U.S.C. 2279bb–7) is repealed. 
(52) Section 4 of the Agricultural Marketing Act 
(12 U.S.C. 1141b) is repealed. 
(53) Section 5 of the Agricultural Marketing Act 
(12 U.S.C. 1141c) is repealed. 
(54) Section 6 of the Agricultural Marketing Act 
(12 U.S.C. 1141d) is repealed. 
(55) Section 7 of the Agricultural Marketing Act 
(12 U.S.C. 1141e) is repealed. 
(56) Section 8 of the Agricultural Marketing Act 
(12 U.S.C. 1141f) is repealed. 
(57) Section 14 of the Agricultural Marketing 
Act (12 U.S.C. 1141i) is repealed. 
(58) The Act of June 22, 1939 (53 Stat. 853, 
chapter 239; 12 U.S.C. 1141d–1), is repealed.
443 
† HR 2 EAS 
(59) Section 201(e) of the Emergency Relief and 
Construction Act of 1932 (12 U.S.C. 1148) is re-
pealed. 
(60) Section 2 of the Act of July 14, 1953 (67 
Stat. 150, chapter 192; 12 U.S.C. 1148a–4), is re-
pealed. 
(61) Section 32 of the Farm Credit Act of 1937 
(12 U.S.C. 1148b) is repealed. 
(62) Section 33 of the Farm Credit Act of 1937 
(12 U.S.C. 1148c) is repealed. 
(63) Section 34 of the Farm Credit Act of 1937 
(12 U.S.C. 1148d) is repealed. 
(64) The Joint Resolution of March 3, 1932 (47 
Stat. 60, chapter 70; 12 U.S.C. 1401 et seq.), is re-
pealed. 
SEC. 5408. CORPORATION AS CONSERVATOR OR RECEIVER; 
CERTAIN OTHER POWERS. 
Part E of title V of the Farm Credit Act of 1971 is 
amended by inserting after section 5.61B (12 U.S.C. 
2277a–10b) the following: 
‘‘SEC. 5.61C. CORPORATION AS CONSERVATOR OR RE-
CEIVER; CERTAIN OTHER POWERS. 
‘‘(a) DEFINITION OF INSTITUTION.—In this section, 
the term ‘institution’ includes any System institution for
444 
† HR 2 EAS 
which the Corporation has been appointed as conservator 
or receiver. 
‘‘(b) CERTAIN POWERS AND DUTIES OF CORPORATION 
AS CONSERVATOR OR RECEIVER.—In addition to the pow-
ers inherent in the express grant of corporate authority 
under section 5.58(9), and other powers exercised by the 
Corporation under this part, the Corporation shall have the 
following express powers to act as a conservator or receiver: 
‘‘(1) RULEMAKING
AUTHORITY
OF
CORPORA-
TION.—The Corporation may prescribe such regula-
tions as the Corporation determines to be appropriate 
regarding the conduct of conservatorships or receiver-
ships. 
‘‘(2) GENERAL POWERS.— 
‘‘(A) SUCCESSOR
TO
SYSTEM
INSTITU-
TION.—The Corporation shall, as conservator or 
receiver, and by operation of law, succeed to— 
‘‘(i) all rights, titles, powers, and 
privileges of the System institution, and of 
any stockholder, member, officer, or director 
of such System institution with respect to 
the System institution and the assets of the 
System institution; and
445 
† HR 2 EAS 
‘‘(ii) title to the books, records, and as-
sets of any previous conservator or other 
legal custodian of such System institution. 
‘‘(B) OPERATE
THE
SYSTEM
INSTITU-
TION.—The Corporation may, as conservator or 
receiver— 
‘‘(i) take over the assets of and operate 
the System institution with all the powers 
of the stockholders or members, the directors, 
and the officers of the System institution 
and conduct all business of the System in-
stitution; 
‘‘(ii) collect all obligations and money 
due the System institution; 
‘‘(iii) perform all functions of the Sys-
tem institution in the name of the System 
institution which are consistent with the 
appointment as conservator or receiver; 
‘‘(iv) preserve and conserve the assets 
and property of such System institution; 
and 
‘‘(v) provide by contract for assistance 
in fulfilling any function, activity, action, 
or duty of the Corporation as conservator or 
receiver.
446 
† HR 2 EAS 
‘‘(C) FUNCTIONS OF SYSTEM INSTITUTION’S 
OFFICERS, DIRECTORS, MEMBERS, AND STOCK-
HOLDERS.—The Corporation may, by regulation 
or order, provide for the exercise of any function 
by any stockholder, member, director, or officer 
of any System institution for which the Corpora-
tion has been appointed conservator or receiver. 
‘‘(D) POWERS
AS
CONSERVATOR.—Subject 
to any Farm Credit Administration approvals 
required under this Act, the Corporation may, as 
conservator, take such action as may be— 
‘‘(i) necessary to put the System insti-
tution in a sound and solvent condition; 
and 
‘‘(ii) appropriate to carry on the busi-
ness of the System institution and preserve 
and conserve the assets and property of the 
System institution. 
‘‘(E) ADDITIONAL POWERS AS RECEIVER.— 
The Corporation may, as receiver, liquidate the 
System institution and proceed to realize upon 
the assets of the System institution, in such 
manner as the Corporation determines to be ap-
propriate.
447 
† HR 2 EAS 
‘‘(F) 
ORGANIZATION
OF
NEW
SYSTEM 
BANK.—The Corporation may, as receiver with 
respect to any System bank, organize a bridge 
System bank under subsection (h). 
‘‘(G) MERGER; TRANSFER OF ASSETS AND 
LIABILITIES.— 
‘‘(i) IN
GENERAL.—Subject to clause 
(ii), the Corporation may, as conservator or 
receiver— 
‘‘(I) merge the System institution 
with another System institution; and 
‘‘(II) transfer or sell any asset or 
liability of the System institution in 
default without any approval, assign-
ment, or consent with respect to such 
transfer. 
‘‘(ii) APPROVAL.—No merger or trans-
fer under clause (i) may be made to another 
System institution (other than a bridge 
System bank under subsection (h)) without 
the approval of the Farm Credit Adminis-
tration. 
‘‘(H) PAYMENT OF VALID OBLIGATIONS.— 
The Corporation, as conservator or receiver, 
shall, to the extent that proceeds are realized
448 
† HR 2 EAS 
from the performance of contracts or the sale of 
the assets of a System institution, pay all valid 
obligations of the System institution in accord-
ance with the prescriptions and limitations of 
this section. 
‘‘(I) INCIDENTAL POWERS.— 
‘‘(i) IN
GENERAL.—The Corporation 
may, as conservator or receiver— 
‘‘(I) exercise all powers and au-
thorities specifically granted to con-
servators 
or 
receivers, 
respectively, 
under this section and such incidental 
powers as shall be necessary to carry 
out such powers; and 
‘‘(II) take any action authorized 
by this section, which the Corporation 
determines is in the best interests of— 
‘‘(aa) the System institution 
in receivership or conservatorship; 
‘‘(bb) System institutions; 
‘‘(cc) 
System 
institution 
stockholders or investors; or 
‘‘(dd) the Corporation. 
‘‘(ii) TERMINATION
OF
RIGHTS
AND 
CLAIMS.—
449 
† HR 2 EAS 
‘‘(I) IN GENERAL.—Except as pro-
vided 
in 
subclause 
(II), 
notwith-
standing any other provision of law, 
the appointment of the Corporation as 
receiver for a System institution and 
the succession of the Corporation, by 
operation of law, to the rights, titles, 
powers, and privileges described in 
subparagraph (A) shall terminate all 
rights and claims that the stockholders 
and creditors of the System institution 
may have, arising as a result of their 
status as stockholders or creditors, 
against the assets or charter of the Sys-
tem institution or the Corporation. 
‘‘(II) EXCEPTIONS.—Subclause (I) 
shall not terminate the right to pay-
ment, resolution, or other satisfaction 
of the claims of stockholders and credi-
tors described in that subclause, as per-
mitted under paragraphs (10) and 
(11) and subsection (d). 
‘‘(iii) 
CHARTER.—Notwithstanding 
any other provision of law, for purposes of 
this section, the charter of a System institu-
450 
† HR 2 EAS 
tion shall not be considered to be an asset 
of the System institution. 
‘‘(J) UTILIZATION OF PRIVATE SECTOR.—In 
carrying out its responsibilities in the manage-
ment and disposition of assets from System in-
stitutions, as conservator, receiver, or in its cor-
porate capacity, the Corporation may utilize the 
services of private persons, including real estate 
and loan portfolio asset management, property 
management, auction marketing, legal, and bro-
kerage services, if the Corporation determines 
utilization of such services is practicable, effi-
cient, and cost effective. 
‘‘(3) AUTHORITY OF RECEIVER TO DETERMINE 
CLAIMS.— 
‘‘(A) IN GENERAL.—The Corporation may, 
as receiver, determine claims in accordance with 
the requirements of this subsection and regula-
tions prescribed under paragraph (4). 
‘‘(B) NOTICE
REQUIREMENTS.—The re-
ceiver, in any case involving the liquidation or 
winding up of the affairs of a closed System in-
stitution, shall— 
‘‘(i) promptly publish a notice to the 
System institution’s creditors to present
451 
† HR 2 EAS 
their claims, together with proof, to the re-
ceiver by a date specified in the notice 
which shall be not less than 90 days after 
the publication of such notice; and 
‘‘(ii) republish such notice approxi-
mately 1 month and 2 months, respectively, 
after the publication under clause (i). 
‘‘(C) MAILING
REQUIRED.—The receiver 
shall mail a notice similar to the notice pub-
lished under subparagraph (B)(i) at the time of 
such publication to any creditor shown on the 
System institution’s books— 
‘‘(i) at the creditor’s last address ap-
pearing in such books; or 
‘‘(ii) upon discovery of the name and 
address of a claimant not appearing on the 
System institution’s books within 30 days 
after the discovery of such name and ad-
dress. 
‘‘(4) RULEMAKING AUTHORITY RELATING TO DE-
TERMINATION OF CLAIMS.—The Corporation may pre-
scribe regulations regarding the allowance or dis-
allowance of claims by the receiver and providing for 
administrative determination of claims and review of 
such determination.
452 
† HR 2 EAS 
‘‘(5) PROCEDURES
FOR
DETERMINATION
OF 
CLAIMS.— 
‘‘(A) DETERMINATION PERIOD.— 
‘‘(i) IN GENERAL.—Before the end of 
the 180-day period beginning on the date 
any claim against a System institution is 
filed with the Corporation as receiver, the 
Corporation shall determine whether to 
allow or disallow the claim and shall notify 
the claimant of any determination with re-
spect to such claim. 
‘‘(ii) EXTENSION
OF
TIME.—The pe-
riod described in clause (i) may be extended 
by a written agreement between the claim-
ant and the Corporation. 
‘‘(iii) MAILING
OF
NOTICE
SUFFI-
CIENT.—The requirements of clause (i) shall 
be deemed to be satisfied if the notice of any 
determination with respect to any claim is 
mailed to the last address of the claimant 
which appears— 
‘‘(I) on the System institution’s 
books; 
‘‘(II) in the claim filed by the 
claimant; or
453 
† HR 2 EAS 
‘‘(III) in documents submitted in 
proof of the claim. 
‘‘(iv) CONTENTS
OF
NOTICE
OF
DIS-
ALLOWANCE.—If any claim filed under 
clause (i) is disallowed, the notice to the 
claimant shall contain— 
‘‘(I) a statement of each reason for 
the disallowance; and 
‘‘(II) the procedures available for 
obtaining agency review of the deter-
mination to disallow the claim or judi-
cial determination of the claim. 
‘‘(B) ALLOWANCE OF PROVEN CLAIMS.—The 
receiver shall allow any claim received on or be-
fore the date specified in the notice published 
under paragraph (3)(B)(i) by the receiver from 
any claimant which is proved to the satisfaction 
of the receiver. 
‘‘(C) DISALLOWANCE
OF
CLAIMS
FILED 
AFTER END OF FILING PERIOD.— 
‘‘(i) IN GENERAL.—Except as provided 
in clause (ii), claims filed after the date 
specified in the notice published under 
paragraph (3)(B)(i) shall be disallowed and 
such disallowance shall be final.
454 
† HR 2 EAS 
‘‘(ii) CERTAIN
EXCEPTIONS.—Clause 
(i) shall not apply with respect to any 
claim filed by any claimant after the date 
specified in the notice published under 
paragraph (3)(B)(i) and such claim may be 
considered by the receiver if— 
‘‘(I) the claimant did not receive 
notice of the appointment of the re-
ceiver in time to file such claim before 
such date; and 
‘‘(II) such claim is filed in time 
to permit payment of such claim. 
‘‘(D) AUTHORITY TO DISALLOW CLAIMS.— 
‘‘(i) IN GENERAL.—The receiver may 
disallow any portion of any claim by a 
creditor or claim of security, preference, or 
priority which is not proved to the satisfac-
tion of the receiver. 
‘‘(ii) PAYMENTS TO LESS THAN FULLY 
SECURED
CREDITORS.—In the case of a 
claim of a creditor against a System insti-
tution which is secured by any property or 
other asset of such System institution, any 
receiver appointed for any System institu-
tion—
455 
† HR 2 EAS 
‘‘(I) may treat the portion of such 
claim which exceeds an amount equal 
to the fair market value of such prop-
erty or other asset as an unsecured 
claim against the System institution; 
and 
‘‘(II) may not make any payment 
with respect to such unsecured portion 
of the claim other than in connection 
with the disposition of all claims of 
unsecured creditors of the System insti-
tution. 
‘‘(iii) EXCEPTIONS.—No provision of 
this paragraph shall apply with respect 
to— 
‘‘(I) any extension of credit from 
any Federal Reserve bank or the 
United States Treasury to any System 
institution; or 
‘‘(II) any security interest in the 
assets of the System institution secur-
ing any such extension of credit. 
‘‘(E) NO JUDICIAL REVIEW OF DETERMINA-
TION
PURSUANT
TO
SUBPARAGRAPH
(D).—No 
court may review the Corporation’s determina-
456 
† HR 2 EAS 
tion pursuant to subparagraph (D) to disallow a 
claim. 
‘‘(F) LEGAL EFFECT OF FILING.— 
‘‘(i) 
STATUTE
OF
LIMITATION 
TOLLED.—For purposes of any applicable 
statute of limitations, the filing of a claim 
with the receiver shall constitute a com-
mencement of an action. 
‘‘(ii) NO
PREJUDICE
TO
OTHER
AC-
TIONS.—Subject to paragraph (12) and the 
determination of claims by a receiver, the 
filing of a claim with the receiver shall not 
prejudice any right of the claimant to con-
tinue any action which was filed before the 
appointment of the receiver. 
‘‘(6) PROVISION FOR JUDICIAL DETERMINATION 
OF CLAIMS.— 
‘‘(A) IN GENERAL.—Before the end of the 
60-day period beginning on the earlier of— 
‘‘(i) the end of the period described in 
paragraph (5)(A)(i) with respect to any 
claim against a System institution for 
which the Corporation is receiver; or
457 
† HR 2 EAS 
‘‘(ii) the date of any notice of disallow-
ance of such claim pursuant to paragraph 
(5)(A)(i), 
the claimant may request administrative review 
of the claim in accordance with paragraph (7) or 
file suit on such claim (or continue an action 
commenced before the appointment of the re-
ceiver) in the district or territorial court of the 
United States for the district within which the 
System institution’s principal place of business 
is located or the United States District Court for 
the District of Columbia (and such court shall 
have jurisdiction to hear such claim). 
‘‘(B) STATUTE
OF
LIMITATIONS.—If any 
claimant fails to file suit on such claim (or con-
tinue an action commenced before the appoint-
ment of the receiver), before the end of the 60-day 
period described in subparagraph (A), the claim 
shall be deemed to be disallowed (other than any 
portion of such claim which was allowed by the 
receiver) as of the end of such period, such dis-
allowance shall be final, and the claimant shall 
have no further rights or remedies with respect 
to such claim.
458 
† HR 2 EAS 
‘‘(7) REVIEW OF CLAIMS; ADMINISTRATIVE HEAR-
ING.—If any claimant requests review under this 
paragraph in lieu of filing or continuing any action 
under paragraph (6) and the Corporation agrees to 
such request, the Corporation shall consider the claim 
after opportunity for a hearing on the record. The 
final determination of the Corporation with respect to 
such claim shall be subject to judicial review under 
chapter 7 of title 5, United States Code. 
‘‘(8) EXPEDITED DETERMINATION OF CLAIMS.— 
‘‘(A) 
ESTABLISHMENT
REQUIRED.—The 
Corporation shall establish a procedure for expe-
dited relief outside of the routine claims process 
established under paragraph (5) for claimants 
who— 
‘‘(i) allege the existence of legally valid 
and enforceable or perfected security inter-
ests in assets of any System institution for 
which the Corporation has been appointed 
receiver; and 
‘‘(ii) allege that irreparable injury will 
occur if the routine claims procedure is fol-
lowed. 
‘‘(B) DETERMINATION PERIOD.—Before the 
end of the 90-day period beginning on the date
459 
† HR 2 EAS 
any claim is filed in accordance with the proce-
dures established pursuant to subparagraph (A), 
the Corporation shall— 
‘‘(i) determine— 
‘‘(I) whether to allow or disallow 
such claim; or 
‘‘(II) whether such claim should 
be determined pursuant to the proce-
dures established pursuant to para-
graph (5); and 
‘‘(ii) notify the claimant of the deter-
mination, and if the claim is disallowed, 
provide a statement of each reason for the 
disallowance and the procedure for obtain-
ing agency review or judicial determina-
tion. 
‘‘(C) PERIOD
FOR
FILING
OR
RENEWING 
SUIT.—Any claimant who files a request for ex-
pedited relief shall be permitted to file a suit, or 
to continue a suit filed before the appointment of 
the receiver, seeking a determination of the 
claimant’s rights with respect to such security 
interest after the earlier of—
460 
† HR 2 EAS 
‘‘(i) the end of the 90-day period begin-
ning on the date of the filing of a request 
for expedited relief; or 
‘‘(ii) the date the Corporation denies 
the claim. 
‘‘(D) STATUTE OF LIMITATIONS.—If an ac-
tion described in subparagraph (C) is not filed, 
or the motion to renew a previously filed suit is 
not made, before the end of the 30-day period be-
ginning on the date on which such action or mo-
tion may be filed in accordance with subpara-
graph (B), the claim shall be deemed to be dis-
allowed as of the end of such period (other than 
any portion of such claim which was allowed by 
the receiver), such disallowance shall be final, 
and the claimant shall have no further rights or 
remedies with respect to such claim. 
‘‘(E) LEGAL EFFECT OF FILING.— 
‘‘(i) 
STATUTE
OF
LIMITATION 
TOLLED.—For purposes of any applicable 
statute of limitations, the filing of a claim 
with the receiver shall constitute a com-
mencement of an action. 
‘‘(ii) NO
PREJUDICE
TO
OTHER
AC-
TIONS.—Subject to paragraph (12), the fil-
461 
† HR 2 EAS 
ing of a claim with the receiver shall not 
prejudice any right of the claimant to con-
tinue any action which was filed before the 
appointment of the receiver. 
‘‘(9) AGREEMENT AS BASIS OF CLAIM.— 
‘‘(A) REQUIREMENTS.—Except as provided 
in subparagraph (B), any agreement which does 
not meet the requirements set forth in section 
5.61(d) shall not form the basis of, or substan-
tially comprise, a claim against the receiver or 
the Corporation. 
‘‘(B) EXCEPTION
TO
CONTEMPORANEOUS 
EXECUTION
REQUIREMENT.—Notwithstanding 
section 5.61(d), any agreement relating to an ex-
tension of credit between a Federal Reserve bank 
or the United States Treasury and any System 
institution which was executed before such exten-
sion of credit to such System institution shall be 
treated as having been executed contempora-
neously with such extension of credit for pur-
poses of subparagraph (A). 
‘‘(10) PAYMENT OF CLAIMS.— 
‘‘(A) IN GENERAL.—The receiver may, in 
the receiver’s discretion and to the extent funds 
are available from the assets of the System insti-
462 
† HR 2 EAS 
tution, pay creditor claims which are allowed by 
the receiver, approved by the Corporation pursu-
ant to a final determination pursuant to para-
graph (7) or (8), or determined by the final 
judgment of any court of competent jurisdiction 
in such manner and amounts as are authorized 
under this Act. 
‘‘(B) LIQUIDATION
PAYMENTS.—The re-
ceiver may, in the receiver’s sole discretion, pay 
from the assets of the System institution portions 
of proved claims at any time, and no liability 
shall attach to the Corporation (in such Corpora-
tion’s corporate capacity or as receiver), by rea-
son of any such payment, for failure to make 
payments to a claimant whose claim is not 
proved at the time of any such payment. 
‘‘(C) RULEMAKING
AUTHORITY
OF
COR-
PORATION.—The Corporation may prescribe such 
rules, including definitions of terms, as it deems 
appropriate to establish a single uniform interest 
rate for or to make payments of post insolvency 
interest to creditors holding proven claims 
against the receivership estates of System insti-
tutions following satisfaction by the receiver of 
the principal amount of all creditor claims.
463 
† HR 2 EAS 
‘‘(11) PRIORITY OF EXPENSES AND CLAIMS.— 
‘‘(A) IN GENERAL.—Amounts realized from 
the liquidation or other resolution of any System 
institution by any receiver appointed for such 
System institution shall be distributed to pay 
claims (other than secured claims to the extent of 
any such security) in the following order of pri-
ority: 
‘‘(i) Administrative expenses of the re-
ceiver. 
‘‘(ii) If authorized by the Corporation, 
wages, salaries, or commissions, including 
vacation, severance, and sick leave pay 
earned by an individual— 
‘‘(I) in an amount that is not 
more than $11,725 for each individual 
(as indexed for inflation, by regulation 
of the Corporation); and 
‘‘(II) that is earned 180 days or 
fewer before the date of appointment of 
the Corporation as receiver. 
‘‘(iii) In the case of the resolution of a 
System bank, all claims of holders of con-
solidated and System-wide bonds and all 
claims of the other System banks arising
464 
† HR 2 EAS 
from the payments of the System banks pur-
suant to— 
‘‘(I) section 4.4 on consolidated 
and System-wide bonds issued under 
subsection (c) or (d) of section 4.2; or 
‘‘(II) an agreement, in writing 
and approved by the Farm Credit Ad-
ministration, among the System banks 
to reallocate the payments. 
‘‘(iv) In the case of the resolution of a 
production credit association or other asso-
ciation making direct loans under section 
7.6, all claims of a System bank based on 
the financing agreement between the asso-
ciation and the System bank— 
‘‘(I) including interest accrued be-
fore and after the appointment of the 
receiver; and 
‘‘(II) not including any setoff for 
stock or other equity of that System 
bank owned by the association, on that 
condition that, prior to making that 
setoff, that System bank shall obtain 
the approval of the Farm Credit Ad-
465 
† HR 2 EAS 
ministration Board for the retirement 
of that stock or equity. 
‘‘(v) Any general or senior liability of 
the System institution (which is not a li-
ability described in clause (vi) or (vii)). 
‘‘(vi) Any obligation subordinated to 
general creditors (which is not an obligation 
described in clause (vii)). 
‘‘(vii) Any obligation to stockholders or 
members arising as a result of their status 
as stockholders or members. 
‘‘(B) PAYMENT OF CLAIMS.— 
‘‘(i) IN GENERAL.— 
‘‘(I) PAYMENT.—All claims of 
each priority described in clauses (i) 
through (vii) of subparagraph (A) shall 
be paid in full, or provisions shall be 
made for that payment, prior to the 
payment of any claim of a lesser pri-
ority. 
‘‘(II) INSUFFICIENT
FUNDS.—If 
there are insufficient funds to pay in 
full all claims in any priority de-
scribed clauses (i) through (vii) of sub-
paragraph (A), distribution on that
466 
† HR 2 EAS 
priority of claims shall be made on a 
pro rata basis. 
‘‘(ii) DISTRIBUTION OF REMAINING AS-
SETS.—Following the payment of all claims 
in accordance with subparagraph (A), the 
receiver shall distribute the remainder of the 
assets of the System institution to the own-
ers of stock, participation certificates, and 
other equities in accordance with the prior-
ities for impairment under the bylaws of the 
System institution. 
‘‘(iii) ELIGIBLE BORROWER STOCK.— 
Notwithstanding subparagraph (C) or any 
other provision of this section, eligible bor-
rower stock shall be retired in accordance 
with section 4.9A. 
‘‘(C) EFFECT OF STATE LAW.— 
‘‘(i) IN GENERAL.—The provisions of 
subparagraph (A) shall not supersede the 
law of any State except to the extent such 
law is inconsistent with the provisions of 
such subparagraph, and then only to the ex-
tent of the inconsistency. 
‘‘(ii) PROCEDURE FOR DETERMINATION 
OF
INCONSISTENCY.—Upon the Corpora-
467 
† HR 2 EAS 
tion’s own motion or upon the request of 
any person with a claim described in sub-
paragraph (A) or any State which is sub-
mitted to the Corporation in accordance 
with procedures which the Corporation shall 
prescribe, the Corporation shall determine 
whether any provision of the law of any 
State is inconsistent with any provision of 
subparagraph (A) and the extent of any 
such inconsistency. 
‘‘(iii) JUDICIAL
REVIEW.—The final 
determination of the Corporation under 
clause (ii) shall be subject to judicial review 
under chapter 7 of title 5, United States 
Code. 
‘‘(D) ACCOUNTING REPORT.—Any distribu-
tion by the Corporation in connection with any 
claim described in subparagraph (A)(vii) shall 
be accompanied by the accounting report re-
quired under paragraph (15)(B). 
‘‘(12) SUSPENSION OF LEGAL ACTIONS.— 
‘‘(A) IN GENERAL.—After the appointment 
of a conservator or receiver for a System institu-
tion, the conservator or receiver may request a 
stay for a period not to exceed—
468 
† HR 2 EAS 
‘‘(i) 45 days, in the case of any conser-
vator; and 
‘‘(ii) 90 days, in the case of any re-
ceiver, 
in any judicial action or proceeding to which 
such System institution is or becomes a party. 
‘‘(B) GRANT OF STAY BY ALL COURTS RE-
QUIRED.—Upon receipt of a request by any con-
servator or receiver pursuant to subparagraph 
(A) for a stay of any judicial action or pro-
ceeding in any court with jurisdiction of such 
action or proceeding, the court shall grant such 
stay as to all parties. 
‘‘(13) ADDITIONAL RIGHTS AND DUTIES.— 
‘‘(A) PRIOR
FINAL
ADJUDICATION.—The 
Corporation 
shall 
abide 
by 
any 
final 
unappealable judgment of any court of competent 
jurisdiction which was rendered before the ap-
pointment of the Corporation as conservator or 
receiver. 
‘‘(B) RIGHTS AND REMEDIES OF CONSER-
VATOR OR RECEIVER.—In the event of any ap-
pealable judgment, the Corporation as conser-
vator or receiver shall—
469 
† HR 2 EAS 
‘‘(i) have all the rights and remedies 
available to the System institution (before 
the appointment of such conservator or re-
ceiver) and the Corporation in its corporate 
capacity, including removal to Federal 
court and all appellate rights; and 
‘‘(ii) not be required to post any bond 
in order to pursue such remedies. 
‘‘(C) NO ATTACHMENT OR EXECUTION.—No 
attachment or execution may issue by any court 
on— 
‘‘(i) assets in the possession of the re-
ceiver; or 
‘‘(ii) the charter of a System institu-
tion for which the Corporation has been ap-
pointed receiver. 
‘‘(D) LIMITATION ON JUDICIAL REVIEW.— 
Except as otherwise provided in this subsection, 
no court shall have jurisdiction over— 
‘‘(i) any claim or action for payment 
from, or any action seeking a determination 
of rights with respect to, the assets of any 
System institution for which the Corpora-
tion has been appointed receiver, including
470 
† HR 2 EAS 
assets which the Corporation may acquire 
from itself as such receiver; or 
‘‘(ii) any claim relating to any act or 
omission of such System institution or the 
Corporation as receiver. 
‘‘(E) DISPOSITION
OF
ASSETS.—In exer-
cising any right, power, privilege, or authority 
as receiver in connection with any sale or dis-
position of assets of any System institution for 
which the Corporation is acting as receiver, the 
Corporation shall, to the maximum extent prac-
ticable, conduct its operations in a manner 
which— 
‘‘(i) maximizes the net present value 
return from the sale or disposition of such 
assets; 
‘‘(ii) minimizes the amount of any loss 
realized in the resolution of cases; 
‘‘(iii) ensures adequate competition 
and fair and consistent treatment of 
offerors; 
‘‘(iv) prohibits discrimination on the 
basis of race, sex, or ethnic groups in the so-
licitation and consideration of offers; and
471 
† HR 2 EAS 
‘‘(v) mitigates the potential for serious 
adverse effects to the rest of the System. 
‘‘(14) STATUTE OF LIMITATIONS FOR ACTIONS 
BROUGHT BY CONSERVATOR OR RECEIVER.— 
‘‘(A) IN
GENERAL.—Notwithstanding any 
provision of any contract, the applicable statute 
of limitations with regard to any action brought 
by the Corporation as conservator or receiver 
shall be— 
‘‘(i) in the case of any contract claim, 
the longer of— 
‘‘(I) the 6-year period beginning 
on the date the claim accrues; or 
‘‘(II) the period applicable under 
State law; and 
‘‘(ii) in the case of any tort claim, the 
longer of— 
‘‘(I) the 3-year period beginning 
on the date the claim accrues; or 
‘‘(II) the period applicable under 
State law. 
‘‘(B) DETERMINATION
OF
THE
DATE
ON 
WHICH A CLAIM ACCRUES.—For purposes of sub-
paragraph (A), the date on which the statute of
472 
† HR 2 EAS 
limitations begins to run on any claim described 
in such subparagraph shall be the later of— 
‘‘(i) the date of the appointment of the 
Corporation as conservator or receiver; or 
‘‘(ii) the date on which the cause of ac-
tion accrues. 
‘‘(C) REVIVAL OF EXPIRED STATE CAUSES 
OF ACTION.— 
‘‘(i) IN GENERAL.—In the case of any 
tort claim described in clause (ii) for which 
the statute of limitation applicable under 
State law with respect to such claim has ex-
pired not more than 5 years before the ap-
pointment of the Corporation as conservator 
or receiver, the Corporation may bring an 
action as conservator or receiver on such 
claim without regard to the expiration of 
the statute of limitation applicable under 
State law. 
‘‘(ii) 
CLAIMS
DESCRIBED.—A 
tort 
claim referred to in clause (i) is a claim 
arising from fraud, intentional misconduct 
resulting in unjust enrichment, or inten-
tional misconduct resulting in substantial 
loss to the System institution.
473 
† HR 2 EAS 
‘‘(15) ACCOUNTING
AND
RECORDKEEPING
RE-
QUIREMENTS.— 
‘‘(A) IN
GENERAL.—The Corporation as 
conservator or receiver shall, consistent with the 
accounting and reporting practices and proce-
dures established by the Corporation, maintain a 
full accounting of each conservatorship and re-
ceivership or other disposition of System institu-
tions in default. 
‘‘(B) ANNUAL ACCOUNTING OR REPORT.— 
With respect to each conservatorship or receiver-
ship to which the Corporation was appointed, 
the Corporation shall make an annual account-
ing or report, as appropriate, available to the 
Farm Credit Administration Board. 
‘‘(C) AVAILABILITY OF REPORTS.—Any re-
port prepared pursuant to subparagraph (B) 
shall be made available by the Corporation upon 
request to any stockholder of the System institu-
tion for which the Corporation was appointed 
conservator or receiver or any other member of 
the public. 
‘‘(D) RECORDKEEPING REQUIREMENT.— 
‘‘(i) IN GENERAL.—Except as provided 
in clause (ii), after the end of the 6-year pe-
474 
† HR 2 EAS 
riod beginning on the date the Corporation 
is appointed as receiver of a System institu-
tion, the Corporation may destroy any 
records of such System institution which the 
Corporation, in the Corporation’s discre-
tion, determines to be unnecessary unless 
directed not to do so by a court of com-
petent jurisdiction or governmental agency, 
or prohibited by law. 
‘‘(ii) OLD RECORDS.—Notwithstanding 
clause (i), the Corporation may destroy 
records of a System institution which are at 
least 10 years old as of the date on which 
the Corporation is appointed as the receiver 
of such System institution in accordance 
with clause (i) at any time after such ap-
pointment is final, without regard to the 6- 
year period of limitation contained in 
clause (i). 
‘‘(16) FRAUDULENT TRANSFERS.— 
‘‘(A) IN
GENERAL.—The Corporation, as 
conservator or receiver for any System institu-
tion, may avoid a transfer of any interest of a 
System institution-affiliated party, or any per-
son who the Corporation determines is a debtor
475 
† HR 2 EAS 
of the System institution, in property, or any 
obligation incurred by such party or person, that 
was made within 5 years of the date on which 
the Corporation was appointed conservator or re-
ceiver if such party or person voluntarily or in-
voluntarily made such transfer or incurred such 
liability with the intent to hinder, delay, or de-
fraud the System institution, the Farm Credit 
Administration, or the Corporation. 
‘‘(B) RIGHT OF RECOVERY.—To the extent a 
transfer is avoided under subparagraph (A), the 
Corporation may recover, for the benefit of the 
System institution, the property transferred, or, 
if a court so orders, the value of such property 
(at the time of such transfer) from— 
‘‘(i) the initial transferee of such trans-
fer or the System institution-affiliated 
party or person for whose benefit such 
transfer was made; or 
‘‘(ii) any immediate or mediate trans-
feree of any such initial transferee. 
‘‘(C) RIGHTS
OF
TRANSFEREE
OR
OBLI-
GEE.—The Corporation may not recover under 
subparagraph (B) from—
476 
† HR 2 EAS 
‘‘(i) any transferee that takes for value, 
including satisfaction or securing of a 
present or antecedent debt, in good faith; or 
‘‘(ii) any immediate or mediate good 
faith transferee of such transferee. 
‘‘(D) RIGHTS UNDER THIS PARAGRAPH.— 
The rights under this paragraph of the Corpora-
tion shall be superior to any rights of a trustee 
or any other party (other than any party which 
is a Federal agency) under title 11, United 
States Code. 
‘‘(17) ATTACHMENT OF ASSETS AND OTHER IN-
JUNCTIVE RELIEF.—Subject to paragraph (18), any 
court of competent jurisdiction may, at the request of 
the Corporation (in the Corporation’s capacity as 
conservator or receiver for any System institution or 
in the Corporation’s corporate capacity with respect 
to any asset acquired or liability assumed by the Cor-
poration under section 5.61), issue an order in ac-
cordance with Rule 65 of the Federal Rules of Civil 
Procedure, including an order placing the assets of 
any person designated by the Corporation under the 
control of the court and appointing a trustee to hold 
such assets. 
‘‘(18) STANDARDS.—
477 
† HR 2 EAS 
‘‘(A) SHOWING.—Rule 65 of the Federal 
Rules of Civil Procedure shall apply with respect 
to any proceeding under paragraph (17) without 
regard to the requirement of such rule that the 
applicant show that the injury, loss, or damage 
is irreparable and immediate. 
‘‘(B) STATE PROCEEDING.—If, in the case 
of any proceeding in a State court, the court de-
termines that rules of civil procedure available 
under the laws of such State provide substan-
tially similar protections to such party’s right to 
due process as Rule 65 (as modified with respect 
to such proceeding by subparagraph (A)), the re-
lief sought by the Corporation pursuant to para-
graph (17) may be requested under the laws of 
such State. 
‘‘(19) TREATMENT
OF
CLAIMS
ARISING
FROM 
BREACH OF CONTRACTS EXECUTED BY THE RECEIVER 
OR CONSERVATOR.—Notwithstanding any other provi-
sion of this subsection, any final and unappealable 
judgment for monetary damages entered against a re-
ceiver or conservator for a System institution for the 
breach of an agreement executed or approved by such 
receiver or conservator after the date of its appoint-
ment shall be paid as an administrative expense of
478 
† HR 2 EAS 
the receiver or conservator. Nothing in this paragraph 
shall be construed to limit the power of a receiver or 
conservator to exercise any rights under contract or 
law, including terminating, breaching, canceling, or 
otherwise discontinuing such agreement. 
‘‘(c) PROVISIONS RELATING TO CONTRACTS ENTERED 
INTO BEFORE APPOINTMENT OF CONSERVATOR OR RE-
CEIVER.— 
‘‘(1) AUTHORITY TO REPUDIATE CONTRACTS.— 
In addition to any other rights a conservator or re-
ceiver may have, the conservator or receiver for a Sys-
tem institution may disaffirm or repudiate any con-
tract or lease— 
‘‘(A) to which such System institution is a 
party; 
‘‘(B) the performance of which the conser-
vator or receiver, in the conservator’s or receiv-
er’s discretion, determines to be burdensome; and 
‘‘(C) the disaffirmance or repudiation of 
which the conservator or receiver determines, in 
the conservator’s or receiver’s discretion, will 
promote the orderly administration of the Sys-
tem institution’s affairs. 
‘‘(2) TIMING OF REPUDIATION.—The Corporation 
as conservator or receiver for any System institution
479 
† HR 2 EAS 
shall determine whether or not to exercise the rights 
of repudiation under this subsection within a reason-
able period following such appointment. 
‘‘(3) CLAIMS FOR DAMAGES FOR REPUDIATION.— 
‘‘(A) IN
GENERAL.—Except as otherwise 
provided in subparagraph (C) and paragraphs 
(4), (5), and (6), the liability of the conservator 
or receiver for the disaffirmance or repudiation 
of any contract pursuant to paragraph (1) shall 
be— 
‘‘(i) limited to actual direct compen-
satory damages; and 
‘‘(ii) determined as of— 
‘‘(I) the date of the appointment 
of the conservator or receiver; or 
‘‘(II) in the case of any contract 
or agreement referred to in paragraph 
(8), the date of the disaffirmance or re-
pudiation of such contract or agree-
ment. 
‘‘(B) NO LIABILITY FOR OTHER DAMAGES.— 
For purposes of subparagraph (A), the term ‘ac-
tual direct compensatory damages’ does not in-
clude— 
‘‘(i) punitive or exemplary damages;
480 
† HR 2 EAS 
‘‘(ii) damages for lost profits or oppor-
tunity; or 
‘‘(iii) damages for pain and suffering. 
‘‘(C) MEASURE OF DAMAGES FOR REPUDI-
ATION OF FINANCIAL CONTRACTS.—In the case of 
any qualified financial contract or agreement to 
which paragraph (8) applies, compensatory 
damages shall be— 
‘‘(i) deemed to include normal and rea-
sonable costs of cover or other reasonable 
measures of damages utilized in the indus-
tries for such contract and agreement 
claims; and 
‘‘(ii) paid in accordance with this sub-
section and subsection (j), except as other-
wise specifically provided in this section. 
‘‘(4) LEASES UNDER WHICH THE SYSTEM INSTI-
TUTION IS THE LESSEE.— 
‘‘(A) IN GENERAL.—If the conservator or re-
ceiver disaffirms or repudiates a lease under 
which the System institution was the lessee, the 
conservator or receiver shall not be liable for any 
damages (other than damages determined pursu-
ant to subparagraph (B)) for the disaffirmance 
or repudiation of such lease.
481 
† HR 2 EAS 
‘‘(B) 
PAYMENTS
OF
RENT.—Notwith-
standing subparagraph (A), the lessor under a 
lease to which such subparagraph applies shall— 
‘‘(i) be entitled to the contractual rent 
accruing before the later of the date— 
‘‘(I) the notice of disaffirmance or 
repudiation is mailed; or 
‘‘(II) the disaffirmance or repudi-
ation becomes effective, unless the lessor 
is in default or breach of the terms of 
the lease; and 
‘‘(ii) have no claim for damages under 
any acceleration clause or other penalty 
provision in the lease; and 
‘‘(iii) have a claim for any unpaid 
rent, subject to all appropriate offsets and 
defenses, due as of the date of the appoint-
ment, which shall be paid in accordance 
with this subsection and subsection (j). 
‘‘(5) LEASES UNDER WHICH THE SYSTEM INSTI-
TUTION IS THE LESSOR.— 
‘‘(A) IN GENERAL.—If the conservator or re-
ceiver repudiates an unexpired written lease of 
real property of the System institution under 
which the System institution is the lessor and
482 
† HR 2 EAS 
the lessee is not, as of the date of such repudi-
ation, in default, the lessee under such lease may 
either— 
‘‘(i) treat the lease as terminated by 
such repudiation; or 
‘‘(ii) remain in possession of the lease-
hold interest for the balance of the term of 
the lease, unless the lessee defaults under the 
terms of the lease after the date of such re-
pudiation. 
‘‘(B) PROVISIONS APPLICABLE TO LESSEE 
REMAINING IN POSSESSION.—If any lessee under 
a lease described in subparagraph (A) remains 
in possession of a leasehold interest pursuant to 
clause (ii) of such subparagraph— 
‘‘(i) the lessee— 
‘‘(I) shall continue to pay the con-
tractual rent pursuant to the terms of 
the lease after the date of the repudi-
ation of such lease; and 
‘‘(II) may offset against any rent 
payment which accrues after the date 
of the repudiation of the lease, any 
damages which accrue after such date 
due to the nonperformance of any obli-
483 
† HR 2 EAS 
gation of the System institution under 
the lease after such date; and 
‘‘(ii) the conservator or receiver shall 
not be liable to the lessee for any damages 
arising after such date as a result of the re-
pudiation, other than the amount of any 
offset allowed under clause (i)(II). 
‘‘(6) CONTRACTS FOR THE SALE OF REAL PROP-
ERTY.— 
‘‘(A) IN GENERAL.—If the conservator or re-
ceiver repudiates any contract (which repudiates 
any contract that meets the requirements of 
paragraphs (1) through (4) of section 5.61(d) for 
the sale of real property, and the purchaser of 
such real property under such contract is in pos-
session and is not, as of the date of such repudi-
ation, in default, such purchaser may either— 
‘‘(i) treat the contract as terminated by 
such repudiation; or 
‘‘(ii) remain in possession of such real 
property. 
‘‘(B) PROVISIONS
APPLICABLE
TO
PUR-
CHASER
REMAINING
IN
POSSESSION.—If any 
purchaser of real property under any contract 
described in subparagraph (A) remains in pos-
484 
† HR 2 EAS 
session of such property pursuant to clause (ii) 
of such subparagraph— 
‘‘(i) the purchaser— 
‘‘(I) shall continue to make all 
payments due under the contract after 
the date of the repudiation of the con-
tract; and 
‘‘(II) may offset against any such 
payments any damages which accrue 
after such date due to the nonperform-
ance (after such date) of any obligation 
of the System institution under the 
contract; and 
‘‘(ii) the conservator or receiver shall— 
‘‘(I) not be liable to the purchaser 
for any damages arising after that 
date as a result of the repudiation, 
other than the amount of any offset al-
lowed under clause (i)(II); 
‘‘(II) deliver title to the purchaser 
in accordance with the contract; and 
‘‘(III) have no obligation under 
the contract, other than the perform-
ance required under subclause (II). 
‘‘(C) ASSIGNMENT AND SALE ALLOWED.—
485 
† HR 2 EAS 
‘‘(i) IN
GENERAL.—No provision of 
this paragraph shall be construed as lim-
iting the right of the conservator or receiver 
to assign the contract described in subpara-
graph (A) and sell the property subject to 
the contract and this paragraph. 
‘‘(ii) NO LIABILITY AFTER ASSIGNMENT 
AND SALE.—If an assignment and sale de-
scribed in clause (i) is consummated, the 
Corporation, acting as conservator or re-
ceiver, shall have no further liability under 
the applicable contract described in sub-
paragraph (A) or with respect to the real 
property which was the subject of such con-
tract. 
‘‘(7) PROVISIONS APPLICABLE TO SERVICE CON-
TRACTS.— 
‘‘(A) SERVICES
PERFORMED
BEFORE
AP-
POINTMENT.—In the case of any contract for 
services between any person and any System in-
stitution for which the Corporation has been ap-
pointed conservator or receiver, any claim of 
such person for services performed before the ap-
pointment of the conservator or the receiver shall 
be—
486 
† HR 2 EAS 
‘‘(i) a claim to be paid in accordance 
with subsections (b) and (d); and 
‘‘(ii) deemed to have arisen as of the 
date the conservator or receiver was ap-
pointed. 
‘‘(B) SERVICES
PERFORMED
AFTER
AP-
POINTMENT AND PRIOR TO REPUDIATION.—If, in 
the case of any contract for services described in 
subparagraph (A), the conservator or receiver ac-
cepts performance by the other person before the 
conservator or receiver makes any determination 
to exercise the right of repudiation of such con-
tract under this section— 
‘‘(i) the other party shall be paid 
under the terms of the contract for the serv-
ices performed; and 
‘‘(ii) the amount of such payment shall 
be treated as an administrative expense of 
the conservatorship or receivership. 
‘‘(C) ACCEPTANCE
OF
PERFORMANCE
NO 
BAR
TO
SUBSEQUENT
REPUDIATION.—The ac-
ceptance by any conservator or receiver of serv-
ices referred to in subparagraph (B) in connec-
tion with a contract described in such subpara-
graph shall not affect the right of the conservator
487 
† HR 2 EAS 
or receiver, to repudiate such contract under this 
section at any time after such performance. 
‘‘(8) 
CERTAIN
QUALIFIED
FINANCIAL
CON-
TRACTS.— 
‘‘(A) DEFINITIONS.—In this paragraph: 
‘‘(i) COMMODITY CONTRACT.—The term 
‘commodity contract’ means— 
‘‘(I) with respect to a futures com-
mission merchant, a contract for the 
purchase or sale of a commodity for fu-
ture delivery on, or subject to the rules 
of, a contract market or board of trade; 
‘‘(II) with respect to a foreign fu-
tures commission merchant, a foreign 
future; 
‘‘(III) with respect to a leverage 
transaction merchant, a leverage trans-
action; 
‘‘(IV) with respect to a clearing 
organization, a contract for the pur-
chase or sale of a commodity for future 
delivery on, or subject to the rules of, 
a contract market or board of trade 
that is cleared by such clearing organi-
zation, or commodity option traded on,
488 
† HR 2 EAS 
or subject to the rules of, a contract 
market or board of trade that is 
cleared by such clearing organization; 
‘‘(V) with respect to a commodity 
options dealer, a commodity option; 
‘‘(VI) any other agreement or 
transaction that is similar to any 
agreement or transaction referred to in 
this clause; 
‘‘(VII) any combination of the 
agreements or transactions referred to 
in this clause; 
‘‘(VIII) any option to enter into 
any agreement or transaction referred 
to in this clause; 
‘‘(IX) a master agreement that 
provides for an agreement or trans-
action referred to in any of subclauses 
(I) through (VIII), together with all 
supplements to any such master agree-
ment, without regard to whether the 
master agreement provides for an 
agreement or transaction that is not a 
commodity contract under this clause, 
except that the master agreement shall
489 
† HR 2 EAS 
be considered to be a commodity con-
tract under this clause only with re-
spect to each agreement or transaction 
under the master agreement that is re-
ferred to in subclause (I), (II), (III), 
(IV), (V), (VI), (VII), or (VIII); or 
‘‘(X) any security agreement or 
arrangement or other credit enhance-
ment related to any agreement or 
transaction referred to in this clause, 
including any guarantee or reimburse-
ment obligation in connection with 
any agreement or transaction referred 
to in this clause. 
‘‘(ii) FORWARD CONTRACT.—The term 
‘forward contract’ means— 
‘‘(I) a contract (other than a com-
modity contract) for the purchase, sale, 
or transfer of a commodity or any 
similar good, article, service, right, or 
interest which is presently or in the fu-
ture becomes the subject of dealing in 
the forward contract trade, or product 
or byproduct thereof, with a maturity 
date more than 2 days after the date
490 
† HR 2 EAS 
the contract is entered into, including 
a repurchase or reverse repurchase 
transaction (whether or not such re-
purchase or reverse repurchase trans-
action is a repurchase agreement), con-
signment, lease, swap, hedge trans-
action, deposit, loan, option, allocated 
transaction, unallocated transaction, 
or any other similar agreement; 
‘‘(II) any combination of agree-
ments or transactions referred to in 
subclauses (I) and (III); 
‘‘(III) any option to enter into 
any agreement or transaction referred 
to in subclause (I) or (II); 
‘‘(IV) a master agreement that 
provides for an agreement or trans-
action referred to in subclauses (I) 
through (III), together with all supple-
ments to any such master agreement, 
without regard to whether the master 
agreement provides for an agreement 
or transaction that is not a forward 
contract under this clause, except that 
the master agreement shall be consid-
491 
† HR 2 EAS 
ered to be a forward contract under 
this clause only with respect to each 
agreement or transaction under the 
master agreement that is referred to in 
subclause (I), (II), or (III); or 
‘‘(V) any security agreement or 
arrangement or other credit enhance-
ment related to any agreement or 
transaction referred to in subclause (I), 
(II), (III), or (IV), including any 
guarantee or reimbursement obligation 
in connection with any agreement or 
transaction referred to in any such 
subclause. 
‘‘(iii) PERSON.—The term ‘person’— 
‘‘(I) has the meaning given the 
term in section 1 of title 1, United 
States Code; and 
‘‘(II) includes any governmental 
entity. 
‘‘(iv) 
QUALIFIED
FINANCIAL
CON-
TRACT.—The term ‘qualified financial con-
tract’ means any securities contract, com-
modity contract, forward contract, repur-
chase agreement, swap agreement, and any
492 
† HR 2 EAS 
similar agreement that the Corporation de-
termines by regulation, resolution, or order 
to be a qualified financial contract for pur-
poses of this paragraph. 
‘‘(v) REPURCHASE AGREEMENT.— 
‘‘(I) IN GENERAL.—The term ‘re-
purchase agreement’ (including with 
respect to a reverse repurchase agree-
ment)— 
‘‘(aa) means— 
‘‘(AA) an agreement, in-
cluding related terms, which 
provides for the transfer of 
one or more certificates of de-
posit, mortgage-related secu-
rities (as such term is de-
fined in section 3(a) of the 
Securities Exchange Act of 
1934 (15 U.S.C. 78c(a))), 
mortgage loans, interests in 
mortgage-related securities or 
mortgage loans, eligible bank-
ers’ 
acceptances, 
qualified 
foreign government securities 
or securities that are direct
493 
† HR 2 EAS 
obligations of, or that are 
fully 
guaranteed 
by, 
the 
United States or any agency 
of the United States against 
the transfer of funds by the 
transferee of such certificates 
of deposit, eligible bankers’ 
acceptances, securities, mort-
gage loans, or interests with 
a simultaneous agreement by 
such transferee to transfer to 
the transferor thereof certifi-
cates 
of 
deposit, 
eligible 
bankers’ acceptances, securi-
ties, mortgage loans, or inter-
ests as described above, at a 
date certain not later than 1 
year after such transfers or 
on 
demand, 
against 
the 
transfer of funds, or any 
other similar agreement; 
‘‘(BB) any combination 
of agreements or transactions 
referred to in subitems (AA) 
and (CC);
494 
† HR 2 EAS 
‘‘(CC) any option to 
enter into any agreement or 
transaction referred to in 
subitem (AA) or (BB); 
‘‘(DD) a master agree-
ment that provides for an 
agreement or transaction re-
ferred to in subitem (AA), 
(BB), or (CC), together with 
all supplements to any such 
master agreement, without 
regard to whether the master 
agreement provides for an 
agreement 
or 
transaction 
that is not a repurchase 
agreement under this item, 
except that the master agree-
ment shall be considered to 
be a repurchase agreement 
under this item only with re-
spect to each agreement or 
transaction under the master 
agreement that is referred to 
in subitem (AA), (BB), or 
(CC); and
495 
† HR 2 EAS 
‘‘(EE) 
any 
security 
agreement or arrangement or 
other credit enhancement re-
lated to any agreement or 
transaction referred to in 
any 
of 
subitems 
(AA) 
through (DD), including any 
guarantee or reimbursement 
obligation in connection with 
any agreement or transaction 
referred to in any such 
subitem; and 
‘‘(bb) does not include any 
repurchase obligation under a 
participation in a commercial 
mortgage, loan unless the Cor-
poration determines by regula-
tion, resolution, or order to in-
clude 
any 
such 
participation 
within the meaning of such term. 
‘‘(II) RELATED DEFINITION.—For 
purposes of subclause (I)(aa), the term 
‘qualified foreign government security’ 
means a security that is a direct obli-
gation of, or that is fully guaranteed
496 
† HR 2 EAS 
by, the central government of a mem-
ber of the Organization for Economic 
Cooperation and Development (as de-
termined by regulation or order adopt-
ed by the appropriate Federal banking 
authority). 
‘‘(vi) 
SECURITIES
CONTRACT.—The 
term ‘securities contract’— 
‘‘(I) means— 
‘‘(aa) a contract for the pur-
chase, sale, or loan of a security, 
a certificate of deposit, a mortgage 
loan, any interest in a mortgage 
loan, a group or index of securi-
ties, certificates of deposit, or 
mortgage loans or interests therein 
(including any interest therein or 
based on the value thereof) or any 
option on any of the foregoing, in-
cluding any option to purchase or 
sell any such security, certificate 
of deposit, mortgage loan, interest, 
group or index, or option, and in-
cluding any repurchase or reverse 
repurchase transaction on any
497 
† HR 2 EAS 
such security, certificate of de-
posit, mortgage loan, interest, 
group or index, or option (whether 
or not the repurchase or reverse 
repurchase transaction is a repur-
chase agreement); 
‘‘(bb) any option entered into 
on a national securities exchange 
relating to foreign currencies; 
‘‘(cc) the guarantee (includ-
ing by novation) by or to any se-
curities clearing agency of any 
settlement of cash, securities, cer-
tificates of deposit, mortgage loans 
or interests therein, group or 
index of securities, certificates of 
deposit, or mortgage loans or in-
terests therein (including any in-
terest therein or based on the 
value thereof) or option on any of 
the foregoing, including any op-
tion to purchase or sell any such 
security, certificate of deposit, 
mortgage loan, interest, group or 
index, or option (whether or not
498 
† HR 2 EAS 
the settlement is in connection 
with any agreement or trans-
action referred to in any of items 
(aa), (bb), and (dd) through (kk)); 
‘‘(dd) any margin loan; 
‘‘(ee) any extension of credit 
for the clearance or settlement of 
securities transactions; 
‘‘(ff) any loan transaction 
coupled with a securities collar 
transaction, any prepaid securi-
ties forward transaction, or any 
total return swap transaction cou-
pled with a securities sale trans-
action; 
‘‘(gg) any other agreement or 
transaction that is similar to any 
agreement or transaction referred 
to in this subclause; 
‘‘(hh) any combination of the 
agreements or transactions re-
ferred to in this subclause; 
‘‘(ii) any option to enter into 
any agreement or transaction re-
ferred to in this subclause;
499 
† HR 2 EAS 
‘‘(jj) a master agreement that 
provides for an agreement or 
transaction referred to in any of 
items (aa) through (ii), together 
with all supplements to any such 
master agreement, without regard 
to whether the master agreement 
provides for an agreement or 
transaction that is not a securities 
contract under this subclause, ex-
cept that the master agreement 
shall be considered to be a securi-
ties contract under this subclause 
only with respect to each agree-
ment or transaction under the 
master agreement that is referred 
to in item (aa), (bb), (cc), (dd), 
(ee), (ff), (gg), (hh), or (ii); and 
‘‘(kk) any security agreement 
or arrangement or other credit en-
hancement related to any agree-
ment or transaction referred to in 
this 
subclause, 
including 
any 
guarantee or reimbursement obli-
gation in connection with any
500 
† HR 2 EAS 
agreement or transaction referred 
to in this subclause; and 
‘‘(II) does not include any pur-
chase, sale, or repurchase obligation 
under a participation in a commercial 
mortgage loan unless the Corporation 
determines by regulation, resolution, or 
order to include any such agreement 
within the meaning of such term. 
‘‘(vii) SWAP
AGREEMENT.—The term 
‘swap agreement’ means— 
‘‘(I) any agreement, including the 
terms and conditions incorporated by 
reference in any such agreement, that 
is— 
‘‘(aa) an interest rate swap, 
option, future, or forward agree-
ment, including a rate floor, rate 
cap, rate collar, cross-currency 
rate swap, and basis swap; 
‘‘(bb) a spot, same day-to-
morrow, tomorrow-next, forward, 
or other foreign exchange precious 
metals or other commodity agree-
ment;
501 
† HR 2 EAS 
‘‘(cc) a currency swap, op-
tion, future, or forward agree-
ment; 
‘‘(dd) an equity index or eq-
uity swap, option, future, or for-
ward agreement; 
‘‘(ee) a debt index or debt 
swap, option, future, or forward 
agreement; 
‘‘(ff) a total return, credit 
spread or credit swap, option, fu-
ture, or forward agreement; 
‘‘(gg) a commodity index or 
commodity swap, option, future, 
or forward agreement; 
‘‘(hh) a weather swap, op-
tion, future, or forward agree-
ment; 
‘‘(ii) an emissions swap, op-
tion, future, or forward agree-
ment; or 
‘‘(jj) an inflation swap, op-
tion, future, or forward agree-
ment;
502 
† HR 2 EAS 
‘‘(II) any agreement or trans-
action that is similar to any other 
agreement or transaction referred to in 
this clause and that is of a type that 
has been, is presently, or in the future 
becomes, the subject of recurrent deal-
ings in the swap or other derivatives 
markets (including terms and condi-
tions incorporated by reference in such 
agreement) and that is a forward, 
swap, future, option or spot trans-
action on one or more rates, currencies, 
commodities, equity securities or other 
equity instruments, debt securities or 
other debt instruments, quantitative 
measures associated with an occur-
rence, extent of an occurrence, or con-
tingency associated with a financial, 
commercial, or economic consequence, 
or economic or financial indices or 
measures of economic or financial risk 
or value; 
‘‘(III) any combination of agree-
ments or transactions referred to in 
this clause;
503 
† HR 2 EAS 
‘‘(IV) any option to enter into 
any agreement or transaction referred 
to in this clause; 
‘‘(V) a master agreement that pro-
vides for an agreement or transaction 
referred to in any of subclauses (I) 
through (IV), together with all supple-
ments to any such master agreement, 
without regard to whether the master 
agreement contains an agreement or 
transaction that is not a swap agree-
ment under this clause, except that the 
master agreement shall be considered to 
be a swap agreement under this clause 
only with respect to each agreement or 
transaction under the master agree-
ment that is referred to in subclause 
(I), (II), (III), or (IV); and 
‘‘(VI) any security agreement or 
arrangement or other credit enhance-
ment related to any agreements or 
transactions referred to in any of sub-
clauses (I) through (V), including any 
guarantee or reimbursement obligation 
in connection with any agreement or
504 
† HR 2 EAS 
transaction referred to in any such 
subclause. 
‘‘(viii) TRANSFER.—The term ‘trans-
fer’ means every mode, direct or indirect, 
absolute or conditional, voluntary or invol-
untary, of disposing of or parting with 
property or with an interest in property, 
including retention of title as a security in-
terest and foreclosure of the equity of re-
demption of a System institution. 
‘‘(ix) TREATMENT OF MASTER AGREE-
MENT AS 1 AGREEMENT.—For purposes of 
this subparagraph— 
‘‘(I) any master agreement for 
any contract or agreement described in 
this subparagraph (or any master 
agreement for such a master agreement 
or agreements), together with all sup-
plements to the master agreement, shall 
be treated as a single agreement and a 
single qualified financial contact; and 
‘‘(II) if a master agreement con-
tains provisions relating to agreements 
or transactions that are not qualified 
financial contracts, the master agree-
505 
† HR 2 EAS 
ment shall be deemed to be a qualified 
financial contract only with respect to 
those transactions that are themselves 
qualified financial contracts. 
‘‘(B) RIGHTS OF PARTIES TO CONTRACTS.— 
Subject to paragraphs (9) and (10), and not-
withstanding any other provision of this Act 
(other than subsection (b)(9) and section 5.61(d)) 
or any other Federal or State law, no person 
shall be stayed or prohibited from exercising— 
‘‘(i) any right such person has to cause 
the termination, liquidation, or acceleration 
of any qualified financial contract with a 
System institution which arises upon the 
appointment of the Corporation as receiver 
for such System institution at any time 
after such appointment; 
‘‘(ii) any right under any security 
agreement or arrangement or other credit 
enhancement related to one or more quali-
fied financial contracts described in clause 
(i); or 
‘‘(iii) any right to offset or net out any 
termination value, payment amount, or 
other transfer obligation arising under, or
506 
† HR 2 EAS 
in connection with, 1 or more contracts and 
agreements described in clause (i), includ-
ing any master agreement for such con-
tracts or agreements. 
‘‘(C) APPLICABILITY
OF
OTHER
PROVI-
SIONS.—Subsection (b)(12) shall apply in the 
case of any judicial action or proceeding brought 
against any receiver referred to in subparagraph 
(A), or the System institution for which such re-
ceiver was appointed, by any party to a contract 
or agreement described in subparagraph (B)(i) 
with such System institution. 
‘‘(D) CERTAIN
TRANSFERS
NOT
AVOID-
ABLE.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
paragraph (11) or any other Federal or 
State law relating to the avoidance of pref-
erential or fraudulent transfers, the Cor-
poration, whether acting as such or as con-
servator or receiver of a System institution, 
may not avoid any transfer of money or 
other property in connection with any 
qualified financial contract with a System 
institution.
507 
† HR 2 EAS 
‘‘(ii) EXCEPTION FOR CERTAIN TRANS-
FERS.—Clause (i) shall not apply to any 
transfer of money or other property in con-
nection with any qualified financial con-
tract with a System institution if the Cor-
poration determines that the transferee had 
actual intent to hinder, delay, or defraud 
such System institution, the creditors of 
such System institution, or any conservator 
or receiver appointed for such System insti-
tution. 
‘‘(E) CERTAIN PROTECTIONS IN EVENT OF 
APPOINTMENT
OF
CONSERVATOR.—Notwith-
standing any other provision of this Act (other 
than subparagraph (G), paragraph (10), sub-
section (b)(9), and section 5.61(d)) or any other 
Federal or State law, no person shall be stayed 
or prohibited from exercising— 
‘‘(i) any right such person has to cause 
the termination, liquidation, or acceleration 
of any qualified financial contract with a 
System institution in a conservatorship 
based upon a default under such financial 
contract which is enforceable under applica-
ble noninsolvency law;
508 
† HR 2 EAS 
‘‘(ii) any right under any security 
agreement or arrangement or other credit 
enhancement related to one or more quali-
fied financial contracts described in clause 
(i); and 
‘‘(iii) any right to offset or net out any 
termination values, payment amounts, or 
other transfer obligations arising under or 
in connection with such qualified financial 
contracts. 
‘‘(F) CLARIFICATION.—No provision of law 
shall be construed as limiting the right or power 
of the Corporation, or authorizing any court or 
agency to limit or delay, in any manner, the 
right or power of the Corporation to transfer any 
qualified financial contract in accordance with 
paragraphs (9) and (10) or to disaffirm or repu-
diate any such contract in accordance with 
paragraph (1). 
‘‘(G) WALKAWAY
CLAUSES
NOT
EFFEC-
TIVE.— 
‘‘(i) 
DEFINITION
OF
WALKAWAY 
CLAUSE.—In this subparagraph, the term 
‘walkaway clause’ means any provision in 
a qualified financial contract that suspends,
509 
† HR 2 EAS 
conditions, or extinguishes a payment obli-
gation of a party, in whole or in part, or 
does not create a payment obligation of a 
party that would otherwise exist— 
‘‘(I) solely because of— 
‘‘(aa) the status of the party 
as a nondefaulting party in con-
nection with the insolvency of a 
System institution that is a party 
to the contract; or 
‘‘(bb) the appointment of, or 
the exercise of rights or powers by, 
the Corporation as a conservator 
or receiver of the System institu-
tion; and 
‘‘(II) not as a result of the exercise 
by a party of any right to offset, setoff, 
or net obligations that exist under— 
‘‘(aa) the contract; 
‘‘(bb) any other contract be-
tween those parties; or 
‘‘(cc) applicable law. 
‘‘(ii) 
TREATMENT.—Notwithstanding 
the provisions of subparagraphs (B) and 
(E), no walkaway clause shall be enforceable
510 
† HR 2 EAS 
in a qualified financial contract of a Sys-
tem institution in default. 
‘‘(iii) LIMITED SUSPENSION OF CER-
TAIN OBLIGATIONS.—In the case of a quali-
fied financial contract referred to in clause 
(ii), any payment or delivery obligations 
otherwise due from a party pursuant to the 
qualified financial contract shall be sus-
pended from the time the receiver is ap-
pointed until the earlier of— 
‘‘(I) the time such party receives 
notice that such contract has been 
transferred pursuant to subparagraph 
(B); or 
‘‘(II) 5:00 p.m. (eastern time) on 
the business day following the date of 
the appointment of the receiver. 
‘‘(H) RECORDKEEPING
REQUIREMENTS.— 
The Corporation, in consultation with the Farm 
Credit Administration, may prescribe regula-
tions requiring more detailed recordkeeping by 
any System institution with respect to qualified 
financial contracts (including market valu-
ations), only if such System institution is subject
511 
† HR 2 EAS 
to subclause (I), (III), or (IV) of section 
5.61B(a)(1)(A)(ii). 
‘‘(9) TRANSFER OF QUALIFIED FINANCIAL CON-
TRACTS.— 
‘‘(A) DEFINITIONS.—In this paragraph: 
‘‘(i) CLEARING
ORGANIZATION.—The 
term ‘clearing organization’ has the mean-
ing given the term in section 402 of the 
Federal Deposit Insurance Corporation Im-
provement Act of 1991 (12 U.S.C. 4402). 
‘‘(ii) FINANCIAL
INSTITUTION.—The 
term ‘financial institution’ means a System 
institution, a broker or dealer, a depository 
institution, a futures commission merchant, 
or any other institution, as determined by 
the Corporation by regulation to be a finan-
cial institution. 
‘‘(B) 
REQUIREMENT.—In 
making 
any 
transfer of assets or liabilities of a System insti-
tution in default which includes any qualified fi-
nancial contract, the conservator or receiver for 
such System institution shall either— 
‘‘(i) transfer to one financial institu-
tion, other than a financial institution for 
which a conservator, receiver, trustee in
512 
† HR 2 EAS 
bankruptcy, or other legal custodian has 
been appointed, or that is otherwise the sub-
ject of a bankruptcy or insolvency pro-
ceeding— 
‘‘(I) all qualified financial con-
tracts between any person or any affil-
iate of such person and the System in-
stitution in default; 
‘‘(II) all claims of such person or 
any affiliate of such person against 
such System institution under any 
such contract (other than any claim 
which, under the terms of any such 
contract, is subordinated to the claims 
of general unsecured creditors of such 
System institution); 
‘‘(III) all claims of such System 
institution against such person or any 
affiliate of such person under any such 
contract; and 
‘‘(IV) all property securing or any 
other credit enhancement for any con-
tract described in subclause (I) or any 
claim described in subclause (II) or 
(III) under any such contract; or
513 
† HR 2 EAS 
‘‘(ii) transfer none of the qualified fi-
nancial contracts, claims, property or other 
credit enhancement referred to in clause (i) 
(with respect to such person and any affil-
iate of such person). 
‘‘(C) TRANSFER
TO
FOREIGN
BANK, FOR-
EIGN
FINANCIAL
INSTITUTION, OR
BRANCH
OR 
AGENCY OF A FOREIGN BANK OR FINANCIAL IN-
STITUTION.—In transferring any qualified fi-
nancial contracts and related claims and prop-
erty under subparagraph (B)(i), the conservator 
or receiver for the System institution shall not 
make such transfer to a foreign bank, financial 
institution organized under the laws of a foreign 
country, or a branch or agency of a foreign bank 
or financial institution unless, under the law ap-
plicable to such bank, financial institution, 
branch or agency, to the qualified financial con-
tracts, and to any netting contract, any security 
agreement or arrangement or other credit en-
hancement related to one or more qualified fi-
nancial contracts, the contractual rights of the 
parties to such qualified financial contracts, net-
ting contracts, security agreements or arrange-
ments, or other credit enhancements are enforce-
514 
† HR 2 EAS 
able substantially to the same extent as per-
mitted under this section. 
‘‘(D) TRANSFER OF CONTRACTS SUBJECT TO 
THE RULES OF A CLEARING ORGANIZATION.—In 
the event that a conservator or receiver transfers 
any qualified financial contract and related 
claims, property, and credit enhancements pur-
suant to subparagraph (B)(i) and such contract 
is cleared by or subject to the rules of a clearing 
organization, the clearing organization shall not 
be required to accept the transferee as a member 
by virtue of the transfer. 
‘‘(10) NOTIFICATION OF TRANSFER.— 
‘‘(A) DEFINITION
OF
BUSINESS
DAY.—In 
this paragraph, the term ‘business day’ means 
any day other than any Saturday, Sunday, or 
any day on which either the New York Stock Ex-
change or the Federal Reserve Bank of New York 
is closed. 
‘‘(B) NOTIFICATION.—If— 
‘‘(i) the conservator or receiver for a 
System institution in default makes any 
transfer of the assets and liabilities of such 
System institution; and
515 
† HR 2 EAS 
‘‘(ii) the transfer includes any quali-
fied financial contract, the conservator or 
receiver shall notify any person who is a 
party to any such contract of such transfer 
by 5:00 p.m. (eastern time) on the business 
day following the date of the appointment of 
the receiver in the case of a receivership, or 
the business day following such transfer in 
the case of a conservatorship. 
‘‘(C) CERTAIN
RIGHTS
NOT
ENFORCE-
ABLE.— 
‘‘(i) RECEIVERSHIP.—A person who is 
a party to a qualified financial contract 
with a System institution may not exercise 
any right that such person has to terminate, 
liquidate, or net such contract under para-
graph (8)(B) of this subsection, solely by 
reason of or incidental to the appointment 
of a receiver for the System institution (or 
the insolvency or financial condition of the 
System institution for which the receiver 
has been appointed)— 
‘‘(I) until 5:00 p.m. (eastern time) 
on the business day following the date 
of the appointment of the receiver; or
516 
† HR 2 EAS 
‘‘(II) after the person has received 
notice that the contract has been trans-
ferred pursuant to paragraph (9)(B). 
‘‘(ii) CONSERVATORSHIP.—A person 
who is a party to a qualified financial con-
tract with a System institution may not ex-
ercise any right that such person has to ter-
minate, liquidate, or net such contract 
under paragraph (8)(E) of this subsection, 
solely by reason of or incidental to the ap-
pointment of a conservator for the System 
institution (or the insolvency or financial 
condition of the System institution for 
which the conservator has been appointed). 
‘‘(iii) NOTICE.—For purposes of this 
paragraph, the Corporation as receiver or 
conservator of a System institution shall be 
deemed to have notified a person who is a 
party to a qualified financial contract with 
such System institution if the Corporation 
has taken steps reasonably calculated to 
provide notice to such person by the time 
specified in subparagraph (B). 
‘‘(D) TREATMENT OF BRIDGE SYSTEM IN-
STITUTIONS.—The following System institutions
517 
† HR 2 EAS 
shall not be considered to be a financial institu-
tion for which a conservator, receiver, trustee in 
bankruptcy, or other legal custodian has been ap-
pointed or which is otherwise the subject of a 
bankruptcy or insolvency proceeding for purposes 
of paragraph (9): 
‘‘(i) A bridge System bank. 
‘‘(ii) A System institution organized 
by the Corporation or the Farm Credit Ad-
ministration, for which a conservator is ap-
pointed either— 
‘‘(I) immediately upon the organi-
zation of the System institution; or 
‘‘(II) at the time of a purchase 
and assumption transaction between 
the System institution and the Cor-
poration as receiver for a System insti-
tution in default. 
‘‘(11) DISAFFIRMANCE
OR
REPUDIATION
OF 
QUALIFIED FINANCIAL CONTRACTS.—In exercising the 
rights of disaffirmance or repudiation of a conser-
vator or receiver with respect to any qualified finan-
cial contract to which a System institution is a 
party, the conservator or receiver for such System in-
stitution shall either—
518 
† HR 2 EAS 
‘‘(A) disaffirm or repudiate all qualified fi-
nancial contracts between— 
‘‘(i) any person or any affiliate of such 
person; and 
‘‘(ii) the System institution in default; 
or 
‘‘(B) disaffirm or repudiate none of the 
qualified financial contracts referred to in sub-
paragraph (A) (with respect to such person or 
any affiliate of such person). 
‘‘(12) CERTAIN SECURITY INTERESTS NOT AVOID-
ABLE.—No provision of this subsection shall be con-
strued as permitting the avoidance of any legally en-
forceable or perfected security interest in any of the 
assets of any System institution except where such an 
interest is taken in contemplation of the System insti-
tution’s insolvency or with the intent to hinder, delay, 
or defraud the System institution or the creditors of 
such System institution. 
‘‘(13) AUTHORITY TO ENFORCE CONTRACTS.— 
‘‘(A) IN GENERAL.—The conservator or re-
ceiver may enforce any contract, other than a di-
rector’s or officer’s liability insurance contract or 
a System institution bond, entered into by the 
System institution notwithstanding any provi-
519 
† HR 2 EAS 
sion of the contract providing for termination, 
default, acceleration, or exercise of rights upon, 
or solely by reason of, insolvency or the appoint-
ment of or the exercise of rights or powers by a 
conservator or receiver. 
‘‘(B) CERTAIN RIGHTS NOT AFFECTED.—No 
provision of this paragraph may be construed as 
impairing or affecting any right of the conser-
vator or receiver to enforce or recover under a di-
rector’s or officer’s liability insurance contract or 
institution bond under other applicable law. 
‘‘(C) CONSENT REQUIREMENT.— 
‘‘(i) IN GENERAL.—Except as otherwise 
provided by this section, no person may ex-
ercise any right or power to terminate, ac-
celerate, or declare a default under any con-
tract to which the System institution is a 
party, or to obtain possession of or exercise 
control over any property of the System in-
stitution or affect any contractual rights of 
the System institution, without the consent 
of the conservator or receiver, as appro-
priate, during the 45-day period beginning 
on the date of the appointment of the con-
servator, or during the 90-day period begin-
520 
† HR 2 EAS 
ning on the date of the appointment of the 
receiver, as applicable. 
‘‘(ii) CERTAIN EXCEPTIONS.—No pro-
vision of this subparagraph shall apply to 
a director or officer liability insurance con-
tract or an institution bond, to the rights of 
parties to certain qualified financial con-
tracts pursuant to paragraph (8), or shall 
be construed as permitting the conservator 
or receiver to fail to comply with otherwise 
enforceable provisions of such contract. 
‘‘(14) EXCEPTION FOR FEDERAL RESERVE AND 
THE
UNITED
STATES
TREASURY.—No provision of 
this subsection shall apply with respect to— 
‘‘(A) any extension of credit from any Fed-
eral Reserve bank or the United States Treasury 
to any System institution; or 
‘‘(B) any security interest in the assets of 
the System institution securing any such exten-
sion of credit. 
‘‘(15) SAVINGS CLAUSE.—The meanings of terms 
used in this subsection— 
‘‘(A) are applicable for purposes of this sub-
section only; and
521 
† HR 2 EAS 
‘‘(B) shall not be construed or applied so as 
to challenge or affect the characterization, defini-
tion, or treatment of any similar terms under 
any other law, regulation, or rule, including— 
‘‘(i) the Gramm-Leach-Bliley Act (12 
U.S.C. 1811 note; Public Law 106–102); 
‘‘(ii) the Legal Certainty for Bank 
Products Act of 2000 (7 U.S.C. 27 et seq.); 
‘‘(iii) the securities laws (as that term 
is defined in section 3(a) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78c(a))); 
and 
‘‘(iv) the Commodity Exchange Act (7 
U.S.C. 1 et seq.). 
‘‘(d) VALUATION OF CLAIMS IN DEFAULT.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of Federal law or the law of any State and 
regardless of the method which the Corporation deter-
mines to utilize with respect to a System institution 
in default or in danger of default, including trans-
actions authorized under subsection (h) and section 
5.61(a), this subsection shall govern the rights of the 
creditors of such System institution. 
‘‘(2) MAXIMUM
LIABILITY.—The maximum li-
ability of the Corporation, acting as receiver or in
522 
† HR 2 EAS 
any other capacity, to any person having a claim 
against the receiver or the System institution for 
which such receiver is appointed shall equal the 
amount such claimant would have received if the Cor-
poration had liquidated the assets and liabilities of 
such System institution without exercising the Cor-
poration’s authority under subsection (h) or section 
5.61(a). 
‘‘(3) ADDITIONAL PAYMENTS AUTHORIZED.— 
‘‘(A) IN GENERAL.—The Corporation may, 
in its discretion and in the interests of mini-
mizing its losses, use its own resources to make 
additional 
payments 
or 
credit 
additional 
amounts to or with respect to or for the account 
of any claimant or category of claimants. Not-
withstanding any other provision of Federal or 
State law, or the constitution of any State, the 
Corporation shall not be obligated, as a result of 
having made any such payment or credited any 
such amount to or with respect to or for the ac-
count of any claimant or category of claimants, 
to make payments to any other claimant or cat-
egory of claimants. 
‘‘(B) MANNER OF PAYMENT.—The Corpora-
tion may make the payments or credit the
523 
† HR 2 EAS 
amounts specified in subparagraph (A) directly 
to the claimants or may make such payments or 
credit such amounts to an open System institu-
tion to induce such System institution to accept 
liability for such claims. 
‘‘(e) LIMITATION ON COURT ACTION.—Except as pro-
vided in this section, no court may take any action, except 
at the written request of the Board of Directors, to restrain 
or affect the exercise of powers or functions of the Corpora-
tion as a conservator or a receiver. 
‘‘(f) LIABILITY OF DIRECTORS AND OFFICERS.— 
‘‘(1) IN GENERAL.—A director or officer of a 
System institution may be held personally liable for 
monetary damages in any civil action— 
‘‘(A) brought by, on behalf of, or at the re-
quest or direction of the Corporation; 
‘‘(B) prosecuted wholly or partially for the 
benefit of the Corporation— 
‘‘(i) acting as conservator or receiver of 
that System institution; 
‘‘(ii) acting based on a suit, claim, or 
cause of action purchased from, assigned by, 
or otherwise conveyed by that receiver or 
conservator; or
524 
† HR 2 EAS 
‘‘(iii) acting based on a suit, claim, or 
cause of action purchased from, assigned by, 
or otherwise conveyed in whole or in part 
by a System institution or an affiliate of a 
System institution in connection with as-
sistance provided under section 5.61(a); and 
‘‘(C) for, as determined under the applicable 
State law— 
‘‘(i) gross negligence; or 
‘‘(ii) any similar conduct, including 
conduct that demonstrates a greater dis-
regard of a duty of care than gross neg-
ligence, such as intentional tortious con-
duct. 
‘‘(2) EFFECT.—Nothing in paragraph (1) im-
pairs or affects any right of the Corporation under 
any other applicable law. 
‘‘(g) DAMAGES.—In any proceeding related to any 
claim against a System institution’s director, officer, em-
ployee, agent, attorney, accountant, appraiser, or any other 
party employed by or providing services to a System insti-
tution, recoverable damages determined to result from the 
improvident or otherwise improper use or investment of any 
System institution’s assets shall include principal losses 
and appropriate interest.
525 
† HR 2 EAS 
‘‘(h) BRIDGE FARM CREDIT SYSTEM BANKS.— 
‘‘(1) ORGANIZATION.— 
‘‘(A) PURPOSE.— 
‘‘(i) IN
GENERAL.—When 1 or more 
System banks are in default, or when the 
Corporation anticipates that 1 or more Sys-
tem banks may become in default, the Cor-
poration may, in its discretion, organize, 
and the Farm Credit Administration may, 
in its discretion, charter, 1 or more System 
banks, with the powers and attributes of 
System banks, subject to the provisions of 
this subsection, to be referred to as ‘bridge 
System banks’. 
‘‘(ii) INTENT OF CONGRESS.—It is the 
intent of the Congress that, in order to pre-
vent unnecessary hardship or losses to the 
customers of any System bank in default 
with respect to which a bridge System bank 
is chartered, the Corporation should— 
‘‘(I) continue to honor commit-
ments made by the System bank in de-
fault to creditworthy customers; and 
‘‘(II) not interrupt or terminate 
adequately secured loans which are
526 
† HR 2 EAS 
transferred under this subsection and 
are being repaid by the debtor in ac-
cordance with the terms of the loan in-
strument. 
‘‘(B) AUTHORITIES.—Once chartered by the 
Farm Credit Administration, the bridge System 
bank may— 
‘‘(i) assume such liabilities of the Sys-
tem bank or banks in default or in danger 
of default as the Corporation may, in its 
discretion, determine to be appropriate; 
‘‘(ii) purchase such assets of the Sys-
tem bank or banks in default or in danger 
of default as the Corporation may, in its 
discretion, determine to be appropriate; and 
‘‘(iii) perform any other temporary 
function which the Corporation may, in its 
discretion, prescribe in accordance with this 
Act. 
‘‘(C) ARTICLES OF ASSOCIATION.—The arti-
cles of association and organization certificate of 
a bridge System bank as approved by the Cor-
poration shall be executed by 3 representatives 
designated by the Corporation.
527 
† HR 2 EAS 
‘‘(D) INTERIM DIRECTORS.—A bridge Sys-
tem bank shall have an interim board of direc-
tors consisting of not fewer than 5 nor more than 
10 members appointed by the Corporation. 
‘‘(2) CHARTERING.— 
‘‘(A) CONDITIONS.—The Farm Credit Ad-
ministration may charter a bridge System bank 
only if the Board of Directors determines that— 
‘‘(i) the amount which is reasonably 
necessary to operate such bridge System 
bank will not exceed the amount which is 
reasonably necessary to save the cost of liq-
uidating 1 or more System banks in default 
or in danger of default with respect to 
which the bridge System bank is chartered; 
‘‘(ii) the continued operation of such 
System bank or banks in default or in dan-
ger of default with respect to which the 
bridge System bank is chartered is essential 
to provide adequate farm credit services in 
the 1 or more communities where each such 
System bank in default or in danger of de-
fault is or was providing those farm credit 
services; or
528 
† HR 2 EAS 
‘‘(iii) the continued operation of such 
System bank or banks in default or in dan-
ger of default with respect to which the 
bridge System bank is chartered is in the 
best interest of the Farm Credit System or 
the public. 
‘‘(B) BRIDGE SYSTEM BANK TREATED AS 
BEING IN DEFAULT FOR CERTAIN PURPOSES.—A 
bridge System bank shall be treated as being in 
default at such times and for such purposes as 
the Corporation may, in its discretion, deter-
mine. 
‘‘(C) 
MANAGEMENT.—A 
bridge 
System 
bank, upon the granting of its charter, shall be 
under the management of a board of directors 
consisting of not fewer than 5 nor more than 10 
members appointed by the Corporation, in con-
sultation with the Farm Credit Administration. 
‘‘(D) BYLAWS.—The board of directors of a 
bridge System bank shall adopt such bylaws as 
may be approved by the Corporation. 
‘‘(3) TRANSFER OF ASSETS AND LIABILITIES.— 
‘‘(A) TRANSFER
UPON
GRANT
OF
CHAR-
TER.—Upon the granting of a charter to a 
bridge System bank pursuant to this subsection,
529 
† HR 2 EAS 
the Corporation, as receiver, may transfer any 
assets and liabilities of the System bank to the 
bridge System bank in accordance with para-
graph (1). 
‘‘(B) SUBSEQUENT
TRANSFERS.—At any 
time after a charter is granted to a bridge Sys-
tem bank, the Corporation, as receiver, may 
transfer any assets and liabilities of such System 
bank in default as the Corporation may, in its 
discretion, determine to be appropriate in ac-
cordance with paragraph (1). 
‘‘(C) EFFECTIVE WITHOUT APPROVAL.—The 
transfer of any assets or liabilities of a System 
bank in default or danger of default transferred 
to a bridge System bank shall be effective with-
out any further approval under Federal or State 
law, assignment, or consent with respect thereto. 
‘‘(4) POWERS OF BRIDGE SYSTEM BANKS.—Each 
bridge System bank chartered under this subsection 
shall, to the extent described in the charter of the Sys-
tem bank in default with respect to which the bridge 
System bank is chartered, have all corporate powers 
of, and be subject to the same provisions of law as, 
any System bank, except that— 
‘‘(A) the Corporation may—
530 
† HR 2 EAS 
‘‘(i) remove the interim directors and 
directors of a bridge System bank; 
‘‘(ii) fix the compensation of members 
of the interim board of directors and the 
board of directors and senior management, 
as determined by the Corporation in its dis-
cretion, of a bridge System bank; and 
‘‘(iii) waive any requirement estab-
lished under Federal or State law which 
would otherwise be applicable with respect 
to directors of a bridge System bank, on the 
condition that the waiver of any require-
ment established by the Farm Credit Ad-
ministration shall require the concurrence 
of the Farm Credit Administration; 
‘‘(B) the Corporation may indemnify the 
representatives for purposes of paragraph (1)(B) 
and the interim directors, directors, officers, em-
ployees, and agents of a bridge System bank on 
such terms as the Corporation determines to be 
appropriate; 
‘‘(C) no requirement under any provision of 
law relating to the capital of a System institu-
tion shall apply with respect to a bridge System 
bank;
531 
† HR 2 EAS 
‘‘(D) the Farm Credit Administration 
Board may establish a limitation on the extent 
to which any person may become indebted to a 
bridge System bank without regard to the 
amount of the bridge System bank’s capital or 
surplus; 
‘‘(E)(i) the board of directors of a bridge 
System bank shall elect a chairperson who may 
also serve in the position of chief executive offi-
cer, except that such person shall not serve either 
as chairperson or as chief executive officer with-
out the prior approval of the Corporation; and 
‘‘(ii) the board of directors of a bridge Sys-
tem bank may appoint a chief executive officer 
who is not also the chairperson, except that such 
person shall not serve as chief executive officer 
without the prior approval of the Corporation; 
‘‘(F) the Farm Credit Administration may 
waive any requirement for a fidelity bond with 
respect to a bridge System bank at the request of 
the Corporation; 
‘‘(G) any judicial action to which a bridge 
System bank becomes a party by virtue of its ac-
quisition of any assets or assumption of any li-
abilities of a System bank in default shall be
535 
† HR 2 EAS 
rectors, officers, employees, or agents of a bridge Sys-
tem bank are not, solely by virtue of service in any 
such capacity, officers or employees of the United 
States. Any employee of the Corporation, the Farm 
Credit Administration, or any Federal instrumen-
tality who serves at the request of the Corporation as 
a representative for purposes of paragraph (1)(C), in-
terim director, director, officer, employee, or agent of 
a bridge System bank shall not— 
‘‘(A) solely by virtue of service in any such 
capacity lose any existing status as an officer or 
employee of the United States for purposes of 
any provision of law; or 
‘‘(B) receive any salary or benefits for serv-
ice in any such capacity with respect to a bridge 
System bank in addition to such salary or bene-
fits as are obtained through employment with the 
Corporation or such Federal instrumentality. 
‘‘(7) ASSISTANCE AUTHORIZED.—The Corpora-
tion may, in its discretion, provide assistance under 
section 5.61(a) to facilitate any merger or consolida-
tion of a bridge System bank in the same manner 
and to the same extent as such assistance may be pro-
vided to a qualifying insured System bank (as defined 
in section 5.61(a)(2)(B)) or to facilitate a bridge Sys-
536 
† HR 2 EAS 
tem bank’s acquisition of any assets or the assump-
tion of any liabilities of a System bank in default or 
in danger of default. 
‘‘(8) DURATION OF BRIDGE SYSTEM BANKS.— 
Subject to paragraphs (10) and (11), the status of a 
bridge System bank as such shall terminate at the end 
of the 2-year period following the date it was granted 
a charter. The Farm Credit Administration Board 
may, in its discretion, extend the status of the bridge 
System bank as such for 3 additional 1-year periods. 
‘‘(9) TERMINATION OF BRIDGE SYSTEM BANKS 
STATUS.—The status of any bridge System bank as 
such shall terminate upon the earliest of— 
‘‘(A) the merger or consolidation of the 
bridge System bank with a System institution 
that is not a bridge System bank, on the condi-
tion that the merger or consolidation shall be 
subject to the approval of the Farm Credit Ad-
ministration; 
‘‘(B) at the election of the Corporation and 
with the approval of the Farm Credit Adminis-
tration, the sale of a majority or all of the cap-
ital stock of the bridge System bank to a System 
institution or another bridge System bank;
537 
† HR 2 EAS 
‘‘(C) at the election of the Corporation, and 
with the approval of the Farm Credit Adminis-
tration, either the assumption of all or substan-
tially all of the liabilities of the bridge System 
bank, or the acquisition of all or substantially 
all of the assets of the bridge System bank, by a 
System institution that is not a bridge System 
bank or other entity as permitted under applica-
ble law; and 
‘‘(D) the expiration of the period provided 
in paragraph (8), or the earlier dissolution of the 
bridge System bank as provided in paragraph 
(11). 
‘‘(10) EFFECT OF TERMINATION EVENTS.— 
‘‘(A) 
MERGER
OR
CONSOLIDATION.—A 
bridge System bank that participates in a merg-
er or consolidation as provided in paragraph 
(9)(A) shall be for all purposes a System institu-
tion, with all the rights, powers, and privileges 
thereof, and such merger or consolidation shall be 
conducted in accordance with, and shall have the 
effect provided in, the provisions of applicable 
law. 
‘‘(B) 
CHARTER
CONVERSION.—Following 
the sale of a majority or all of the capital stock
538 
† HR 2 EAS 
of the bridge System bank as provided in para-
graph (9)(B), the Farm Credit Administration 
Board may amend the charter of the bridge Sys-
tem bank to reflect the termination of the status 
of the bridge System bank as such, whereupon 
the System bank shall remain a System bank, 
with all of the rights, powers, and privileges 
thereof, subject to all laws and regulations appli-
cable thereto. 
‘‘(C) ASSUMPTION
OF
LIABILITIES
AND 
SALE OF ASSETS.—Following the assumption of 
all or substantially all of the liabilities of the 
bridge System bank, or the sale of all or substan-
tially all of the assets of the bridge System bank, 
as provided in paragraph (9)(C), at the election 
of the Corporation, the bridge System bank may 
retain its status as such for the period provided 
in paragraph (8). 
‘‘(D) AMENDMENTS
TO
CHARTER.—Fol-
lowing the consummation of a transaction de-
scribed in subparagraph (A), (B), or (C) of 
paragraph (9), the charter of the resulting Sys-
tem institution shall be amended by the Farm 
Credit Administration to reflect the termination 
of bridge System bank status, if appropriate.
539 
† HR 2 EAS 
‘‘(11) DISSOLUTION OF BRIDGE SYSTEM BANK.— 
‘‘(A) IN
GENERAL.—Notwithstanding any 
other provision of State or Federal law, if the 
bridge System bank’s status as such has not pre-
viously been terminated by the occurrence of an 
event specified in subparagraph (A), (B), or (C) 
of paragraph (9)— 
‘‘(i) the Corporation, after consultation 
with the Farm Credit Administration, may, 
in its discretion, dissolve a bridge System 
bank in accordance with this paragraph at 
any time; and 
‘‘(ii) the Corporation, after consulta-
tion with the Farm Credit Administration, 
shall promptly commence dissolution pro-
ceedings in accordance with this paragraph 
upon the expiration of the 2-year period fol-
lowing the date the bridge System bank was 
chartered, or any extension thereof, as pro-
vided in paragraph (8). 
‘‘(B) PROCEDURES.—The Farm Credit Ad-
ministration Board shall appoint the Corpora-
tion as receiver for a bridge System bank upon 
determining to dissolve the bridge System bank. 
The Corporation as such receiver shall wind up
540 
† HR 2 EAS 
the affairs of the bridge System bank in con-
formity with the provisions of law relating to the 
liquidation of closed System banks. With respect 
to any such bridge System bank, the Corporation 
as such receiver shall have all the rights, powers, 
and privileges and shall perform the duties re-
lated to the exercise of such rights, powers, or 
privileges granted by law to a receiver of any in-
sured System bank and, notwithstanding any 
other provision of law in the exercise of such 
rights, powers, and privileges, the Corporation 
shall not be subject to the direction or super-
vision of any State agency or other Federal 
agency. 
‘‘(12) MULTIPLE BRIDGE SYSTEM BANKS.—The 
Corporation may, in the Corporation’s discretion, or-
ganize, and the Farm Credit Administration may, in 
its discretion, charter, 2 or more bridge System banks 
under this subsection to assume any liabilities and 
purchase any assets of a single System institution in 
default. 
‘‘(i) CERTAIN SALES OF ASSETS PROHIBITED.— 
‘‘(1) PERSONS WHO ENGAGED IN IMPROPER CON-
DUCT WITH, OR CAUSED LOSSES TO, SYSTEM INSTITU-
TIONS.—The Corporation shall prescribe regulations
541 
† HR 2 EAS 
which, at a minimum, shall prohibit the sale of assets 
of a failed System institution by the Corporation to— 
‘‘(A) any person who— 
‘‘(i) has defaulted, or was a member of 
a partnership or an officer or director of a 
corporation that has defaulted, on 1 or more 
obligations the aggregate amount of which 
exceed $1,000,000, to such failed System in-
stitution; 
‘‘(ii) has been found to have engaged in 
fraudulent activity in connection with any 
obligation referred to in clause (i); and 
‘‘(iii) proposes to purchase any such 
asset in whole or in part through the use of 
the proceeds of a loan or advance of credit 
from the Corporation or from any System 
institution for which the Corporation has 
been appointed as conservator or receiver; 
‘‘(B) any person who participated, as an of-
ficer or director of such failed System institution 
or of any affiliate of such System institution, in 
a material way in transactions that resulted in 
a substantial loss to such failed System institu-
tion;
542 
† HR 2 EAS 
‘‘(C) any person who has been removed 
from, or prohibited from participating in the af-
fairs of, such failed System institution pursuant 
to any final enforcement action by the Farm 
Credit Administration; 
‘‘(D) any person who has demonstrated a 
pattern or practice of defalcation regarding obli-
gations to such failed System institution; or 
‘‘(E) any person who is in default on any 
loan or other extension of credit from such failed 
System institution which, if not paid, will cause 
substantial loss to the System institution or the 
Corporation. 
‘‘(2) DEFAULTED DEBTORS.—Except as provided 
in paragraph (3), any person who is in default on 
any loan or other extension of credit from the System 
institution, which, if not paid, will cause substantial 
loss to the System institution or the Corporation, 
may not purchase any asset from the conservator or 
receiver. 
‘‘(3) SETTLEMENT OF CLAIMS.—Paragraph (1) 
shall not apply to the sale or transfer by the Corpora-
tion of any asset of any System institution to any 
person if the sale or transfer of the asset resolves or 
settles, or is part of the resolution or settlement, of—
543 
† HR 2 EAS 
‘‘(A) 1 or more claims that have been, or 
could have been, asserted by the Corporation 
against the person; or 
‘‘(B) obligations owed by the person to any 
System institution, or the Corporation. 
‘‘(4) DEFINITION OF DEFAULT.—For purposes of 
this subsection, the term ‘default’ means a failure to 
comply with the terms of a loan or other obligation 
to such an extent that the property securing the obli-
gation is foreclosed upon. 
‘‘(j) 
EXPEDITED
PROCEDURES
FOR
CERTAIN 
CLAIMS.— 
‘‘(1) TIME FOR FILING NOTICE OF APPEAL.—The 
notice of appeal of any order, whether interlocutory 
or final, entered in any case brought by the Corpora-
tion against a System institution’s director, officer, 
employee, agent, attorney, accountant, or appraiser or 
any other person employed by or providing services to 
a System institution shall be filed not later than 30 
days after the date of entry of the order. The hearing 
of the appeal shall be held not later than 120 days 
after the date of the notice of appeal. The appeal shall 
be decided not later than 180 days after the date of 
the notice of appeal.
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‘‘(2) SCHEDULING.—A court of the United States 
shall expedite the consideration of any case brought 
by the Corporation against a System institution’s di-
rector, officer, employee, agent, attorney, accountant, 
or appraiser or any other person employed by or pro-
viding services to a System institution. As far as 
practicable the court shall give such case priority on 
its docket. 
‘‘(3) JUDICIAL
DISCRETION.—The court may 
modify the schedule and limitations stated in para-
graphs (1) and (2) in a particular case, based on a 
specific finding that the ends of justice that would be 
served by making such a modification would outweigh 
the best interest of the public in having the case re-
solved expeditiously. 
‘‘(k) BOND NOT REQUIRED; AGENTS; FEE.—The Cor-
poration as conservator or receiver of a System institution 
shall not be required to furnish bond and may appoint an 
agent or agents to assist in its duties as such conservator 
or receiver. All fees, compensation, and expenses of liquida-
tion and administration shall be fixed by the Corporation 
and may be paid by it out of funds coming into its posses-
sion as such conservator or receiver. 
‘‘(l) CONSULTATION REGARDING CONSERVATORSHIPS 
AND RECEIVERSHIPS.—To the extent practicable—
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† HR 2 EAS 
‘‘(1) the Farm Credit Administration shall con-
sult with the Corporation prior to taking a 
preresolution action concerning a System institution 
that may result in a conservatorship or receivership; 
and 
‘‘(2) the Corporation, acting in the capacity of 
the Corporation as a conservator or receiver, shall 
consult with the Farm Credit Administration prior to 
taking any significant action impacting System in-
stitutions or service to System borrowers. 
‘‘(m) APPLICABILITY.—This section shall become ap-
plicable with respect to the power of the Corporation to act 
as a conservator or receiver on the date on which the Farm 
Credit Administration appoints the Corporation as a con-
servator or receiver under section 4.12 or 8.41.’’. 
SEC. 5409. REPORTING. 
(a) DEFINITION OF FARM LOAN.—In this section, the 
term ‘‘farm loan’’ means— 
(1) a farm ownership loan under subtitle A of 
the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1922 et seq.); and 
(2) an operating loan under subtitle B of that 
Act (7 U.S.C. 1941 et seq.). 
(b) REPORTS.—
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† HR 2 EAS 
(1) PREPARATION.—For each fiscal year, the 
Secretary shall prepare a report that includes— 
(A) aggregate data based on a review of 
each outstanding farm loan made or guaranteed 
by the Secretary describing, for the United States 
and for each State and county in the United 
States— 
(i) the age of the recipient producer; 
(ii) the duration that the recipient pro-
ducer has engaged in agricultural produc-
tion; 
(iii) the size of the farm or ranch of 
the recipient producer; 
(iv) the race, ethnicity, and gender of 
the recipient producer; 
(v) the agricultural commodity or com-
modities, or type of enterprise, for which the 
loan was secured; 
(vi) the amount of the farm loan made 
or guaranteed; 
(vii) the type of the farm loan made or 
guaranteed; and 
(viii) the default rate of the farm loan 
made or guaranteed;
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† HR 2 EAS 
(B) for each State and county in the United 
States, data demonstrating the number of out-
standing farm loans made or guaranteed, accord-
ing to loan size cohort; and 
(C) an assessment of actual loans made or 
guaranteed as measured against target partici-
pation rates for beginning and socially dis-
advantaged farmers, broken down by State, as 
described in sections 346(b)(2) and 355 of the 
Consolidated Farm and Rural Development Act 
(7 U.S.C. 1994(b)(2), 2003). 
(2) SUBMISSION
OF
REPORT.—The report de-
scribed in paragraph (1) shall be— 
(A) submitted— 
(i) to— 
(I) the Committee on Agriculture 
of the House of Representatives; 
(II) the Committee on Appropria-
tions of the House of Representatives; 
(III) the Committee on Agri-
culture, Nutrition, and Forestry of the 
Senate; and 
(IV) the Committee on Appropria-
tions of the Senate; and
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† HR 2 EAS 
(ii) not later than December 30, 2018, 
and annually thereafter; and 
(B) made publically available not later 
than 90 days after the date described in subpara-
graph (A)(ii). 
(c) COMPREHENSIVE REVIEW.— 
(1) IN GENERAL.—Not later than 4 years after 
the date of enactment of this Act (and every 5 years 
thereafter), the Secretary shall— 
(A) prepare a comprehensive review of all 
reports submitted under subsection (b)(2); 
(B) identify trends within data outlined in 
subsection (b)(1), including the extent to which 
target annual participation rates for beginning 
and socially disadvantaged farmers (as defined 
by the Secretary) are being met for each loan 
type; and 
(C) provide specific actions the Department 
will take to improve the performance of direct 
and guaranteed loans with respect to under-
served producers and any recommendations the 
Secretary may make for further congressional ac-
tion.
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† HR 2 EAS 
(2) SUBMISSION OF COMPREHENSIVE REVIEW.— 
The comprehensive review described in paragraph (1) 
shall be— 
(A) submitted to— 
(i) the Committee on Agriculture of the 
House of Representatives; 
(ii) the Committee on Appropriations 
of the House of Representatives; 
(iii) the Committee on Agriculture, 
Nutrition, and Forestry of the Senate; and 
(iv) the Committee on Appropriations 
of the Senate; and 
(B) made publicly available not later than 
90 days after the date of submission under sub-
paragraph (A). 
(d) PRIVACY.—In preparing any report or review 
under this section, the Secretary shall aggregate or de-iden-
tify the data in a manner sufficient to ensure that the iden-
tity of a recipient producer associated with the data cannot 
be ascertained. 
SEC. 5410. SENSE OF THE SENATE. 
It is the sense of the Senate that — 
(1) sections 346 and 355 of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1994, 
2003) reserve amounts to incentivize participation in
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† HR 2 EAS 
Farm Service Agency loan programs for qualified be-
ginning farmers and ranchers and socially disadvan-
taged farmers; 
(2) under current law— 
(A) for direct loans, 75 percent of the fund-
ing for farm ownership loans and 50 percent of 
operating loans are reserved for the first 11 
months of the fiscal year; and 
(B) for guaranteed loans, 40 percent of 
available funding is reserved for ownership loans 
and farm operating loans for the first 1⁄2 of the 
fiscal year; and 
(3) all participants of the Farm Service Agency 
loan programs should strive to encourage beginning 
farmers and ranchers and socially disadvantaged 
farmers to use Farm Service Agency loans. 
TITLE VI—RURAL DEVELOPMENT 
Subtitle A—Consolidated Farm and 
Rural Development Act 
SEC. 6101. WATER, WASTE DISPOSAL, AND WASTEWATER FA-
CILITY GRANTS. 
Section 306(a)(2)(B) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926(a)(2)(B)) is amend-
ed—
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† HR 2 EAS 
(1) in clause (iii), by striking ‘‘$100,000’’ each 
place it appears and inserting ‘‘$200,000’’; and 
(2) in clause (vii), by striking ‘‘2018’’ and in-
serting ‘‘2023’’. 
SEC. 6102. RURAL WATER AND WASTEWATER TECHNICAL 
ASSISTANCE AND TRAINING PROGRAMS. 
Section 306(a)(14) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926(a)(14)) is amend-
ed— 
(1) in subparagraph (A)— 
(A) in clause (ii), by striking ‘‘and’’ at the 
end; 
(B) in clause (iii), by striking the period at 
the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(iv) identify options to enhance the 
long-term sustainability of rural water and 
waste systems, including operational prac-
tices, revenue enhancements, policy revi-
sions, partnerships, consolidation, regional-
ization, or contract services.’’; 
(2) by striking subparagraph (B) and inserting 
the following:
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† HR 2 EAS 
‘‘(B) SELECTION
PRIORITY.—In selecting 
recipients of grants to be made under subpara-
graph (A), the Secretary shall give priority to— 
‘‘(i) private nonprofit organizations 
that have experience in providing the tech-
nical assistance and training described in 
subparagraph (A) to associations serving 
rural areas in which residents have low in-
come and in which water supply systems or 
waste facilities are unhealthful; and 
‘‘(ii) recipients that will provide tech-
nical assistance and training programs to 
address the contamination of drinking 
water and surface water supplies by emerg-
ing contaminants, including per- and 
polyfluoroalkyl 
substances 
and 
perfluorooctanoic acid.’’; and 
(3) in subparagraph (C)— 
(A) by striking ‘‘1 nor more than 3’’ and 
inserting ‘‘3 percent and not more than 5’’; and 
(B) by striking ‘‘1 per centum’’ and insert-
ing ‘‘3 percent’’.
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† HR 2 EAS 
SEC. 6103. RURAL WATER AND WASTEWATER CIRCUIT 
RIDER PROGRAM. 
Section 306(a)(22)(B) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926(a)(22)(B)) is 
amended by striking ‘‘$20,000,000 for fiscal year 2014 and 
each fiscal year thereafter’’ and inserting ‘‘$25,000,000 for 
each of fiscal years 2019 through 2023’’. 
SEC. 6104. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL 
COMMUNITY FACILITIES. 
Section 306(a)(25)(C) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926(a)(25)(C)) is 
amended by striking ‘‘2018’’ and inserting ‘‘2023’’. 
SEC. 6105. COMMUNITY FACILITIES DIRECT LOANS AND 
GRANTS FOR SUBSTANCE USE DISORDER 
TREATMENT SERVICES. 
Section 306(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)) is amended by adding 
at the end the following: 
‘‘(27) DIRECT
LOANS
AND
GRANTS
FOR
SUB-
STANCE USE DISORDER TREATMENT SERVICES.— 
‘‘(A) SELECTION PRIORITY.—In selecting re-
cipients of loans or grants (not including loans 
guaranteed by the Secretary) for the development 
of essential community facilities under this sec-
tion, the Secretary shall give priority to entities 
eligible for those loans or grants—
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† HR 2 EAS 
‘‘(i) to develop facilities to provide sub-
stance use disorder (including opioid sub-
stance use disorder)— 
‘‘(I) prevention services; 
‘‘(II) treatment services; 
‘‘(III) recovery services; or 
‘‘(IV) any combination of those 
services; and 
‘‘(ii) that employ staff that have ap-
propriate expertise and training in how to 
identify and treat individuals with sub-
stance use disorders. 
‘‘(B) USE OF FUNDS.—An eligible entity de-
scribed in subparagraph (A) that receives a loan 
or grant described in that subparagraph may use 
the loan or grant funds for the development of 
telehealth facilities and systems to provide tele-
health services for substance use disorder treat-
ment.’’. 
SEC. 6106. EMERGENCY AND IMMINENT COMMUNITY WATER 
ASSISTANCE GRANT PROGRAM. 
Section 306A of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1926a) is amended—
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† HR 2 EAS 
(1) in subsection (b)(1), by striking ‘‘; and’’ and 
inserting the following: ‘‘, particularly to projects to 
address contamination that— 
‘‘(A) poses a threat to human health or the 
environment; and 
‘‘(B) was caused by circumstances beyond 
the control of the applicant for a grant, includ-
ing circumstances that occurred over a period of 
time; and’’; 
(2) in subsection (f)(1), by striking ‘‘$500,000’’ 
and inserting ‘‘$1,000,000’’; 
(3) by redesignating subsection (i) as subsection 
(j); 
(4) by inserting after subsection (h) the fol-
lowing: 
‘‘(i) INTERAGENCY TASK FORCE ON RURAL WATER 
QUALITY.— 
‘‘(1) IN GENERAL.—Not later than 90 days after 
the date of enactment of the Agriculture Improvement 
Act of 2018, the Secretary shall coordinate and chair 
an interagency task force to examine drinking water 
and surface water contamination in rural commu-
nities, particularly rural communities that are in 
close proximity to active or decommissioned military 
installations in the United States.
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† HR 2 EAS 
‘‘(2) MEMBERSHIP.—The interagency task force 
shall consist of— 
‘‘(A) the Secretary; 
‘‘(B) the Secretary of the Army, acting 
through the Chief of Engineers; 
‘‘(C) the Secretary of Health and Human 
Services, acting through— 
‘‘(i) the Director of the Agency for 
Toxic Substances and Disease Registry; and 
‘‘(ii) the Director of the Centers for 
Disease Control and Prevention; 
‘‘(D) the Secretary of Housing and Urban 
Development; 
‘‘(E) the Secretary of the Interior, acting 
through— 
‘‘(i) the Director of the United States 
Fish and Wildlife Service; and 
‘‘(ii) the Director of the United States 
Geological Survey; 
‘‘(F) the Administrator of the Environ-
mental Protection Agency; and 
‘‘(G) representatives from rural drinking 
and wastewater entities, State and community 
regulators, and appropriate scientific experts
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† HR 2 EAS 
that reflect a diverse cross-section of the rural 
communities described in paragraph (1). 
‘‘(3) REPORT.— 
‘‘(A) IN
GENERAL.—Not later than 360 
days after the date of enactment of the Agri-
culture Improvement Act of 2018, the task force 
shall submit to the committees described in sub-
paragraph (B) a report that— 
‘‘(i) examines, and identifies issues re-
lating to, water contamination in rural 
communities, particularly rural commu-
nities that are in close proximity to active 
or decommissioned military installations in 
the United States; 
‘‘(ii) reviews the extent to which Fed-
eral, State, and local government agencies 
coordinate with one another to address the 
issues identified under clause (i); 
‘‘(iii) recommends how Federal, State, 
and local government agencies can work to-
gether in the most effective, efficient, and 
cost-effective manner practicable, to address 
the issues identified under clause (i); and 
‘‘(iv) recommends changes to existing 
statutory requirements, regulatory require-
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† HR 2 EAS 
ments, or both, to improve interagency co-
ordination and responsiveness to address 
the issues identified under clause (i). 
‘‘(B) COMMITTEES DESCRIBED.—The com-
mittees referred to in subparagraph (A) are— 
‘‘(i) the Committee on Agriculture of 
the House of Representatives; 
‘‘(ii) the Committee on Agriculture, 
Nutrition, and Forestry of the Senate; 
‘‘(iii) the Committee on Energy and 
Commerce of the House of Representatives; 
‘‘(iv) the Committee on Environment 
and Public Works of the Senate; 
‘‘(v) the Committee on Armed Services 
of the House of Representatives; and 
‘‘(vi) the Committee on Armed Services 
of the Senate.’’; and 
(5) in subsection (j) (as so redesignated)— 
(A) in paragraph (1)(A), by striking ‘‘3 nor 
more than 5’’ and inserting ‘‘5 percent and not 
more than 7’’; and 
(B) 
in 
paragraph 
(2), 
by 
striking 
‘‘$35,000,000 for each of fiscal years 2008 
through 2018’’ and inserting ‘‘$50,000,000 for 
each of fiscal years 2019 through 2023’’.
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† HR 2 EAS 
SEC. 6108. RURAL DECENTRALIZED WATER SYSTEMS. 
Section 306E of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1926e) is amended— 
(1) by striking the section heading and inserting 
‘‘RURAL DECENTRALIZED WATER SYSTEMS’’; 
(2) in subsection (a), by striking ‘‘100’’ and in-
serting ‘‘60’’; 
(3) in subsection (b)— 
(A) in paragraph (1)— 
(i) by inserting ‘‘and subgrants’’ after 
‘‘loans’’; and 
(ii) by inserting ‘‘and individually 
owned household decentralized wastewater 
systems’’ after ‘‘well systems’’; 
(B) by striking paragraph (2) and inserting 
the following: 
‘‘(2) TERMS AND AMOUNTS.— 
‘‘(A) TERMS OF LOANS.—A loan made with 
grant funds under this section— 
‘‘(i) shall have an interest rate of 1 
percent; and 
‘‘(ii) shall have a term not to exceed 20 
years. 
‘‘(B) AMOUNTS.—A loan or subgrant made 
with grant funds under this section shall not ex-
ceed $15,000 for each water well system or decen-
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† HR 2 EAS 
tralized wastewater system described in para-
graph (1).’’; and 
(C) by adding at the end the following: 
‘‘(4) GROUND WELL WATER CONTAMINATION.—In 
the event of ground well water contamination, the 
Secretary shall allow a loan or subgrant to be made 
with grant funds under this section for the installa-
tion of water treatment where needed beyond the 
point of entry, with or without the installation of a 
new water well system.’’; 
(4) in subsection (c), by striking ‘‘productive use 
of individually-owned household water well systems’’ 
and inserting ‘‘effective use of individually owned 
household water well systems, individually owned 
household decentralized wastewater systems,’’; and 
(5) in subsection (d)— 
(A) by striking ‘‘$5,000,000’’ and inserting 
‘‘$40,000,000’’; and 
(B) by striking ‘‘2014 through 2018’’ and 
inserting ‘‘2019 through 2023’’. 
SEC. 6109. SOLID WASTE MANAGEMENT GRANTS. 
Section 310B(b)(2) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1932(b)(2)) is amended 
by striking ‘‘2018’’ and inserting ‘‘2023’’.
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† HR 2 EAS 
SEC. 6110. RURAL BUSINESS DEVELOPMENT GRANTS. 
Section 310B(c)(4)(A) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1932(c)(4)(A)) is amend-
ed by striking ‘‘2018’’ and inserting ‘‘2023’’. 
SEC. 6111. RURAL COOPERATIVE DEVELOPMENT GRANTS. 
Section 310B(e) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932(e)) is amended— 
(1) in paragraph (10), by inserting ‘‘(including 
research and analysis based on data from the latest 
available Economic Census conducted by the Bureau 
of the Census)’’ after ‘‘conduct research’’; and 
(2) in paragraph (13), by striking ‘‘2018’’ and 
inserting ‘‘2023’’. 
SEC. 6112. LOCALLY OR REGIONALLY PRODUCED AGRICUL-
TURAL FOOD PRODUCTS. 
Section 310B(g)(9)(B)(iv)(I) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1932(g)(9)(B)(iv)(I)) 
is amended by striking ‘‘2018’’ and inserting ‘‘2023’’. 
SEC. 6113. APPROPRIATE TECHNOLOGY TRANSFER FOR 
RURAL AREAS PROGRAM. 
Section 310B(i)(4) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1932(i)(4)) is amended 
by striking ‘‘2018’’ and inserting ‘‘2023’’.
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† HR 2 EAS 
SEC. 6114. RURAL ECONOMIC AREA PARTNERSHIP ZONES. 
Section 310B(j) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932(j)) is amended by striking 
‘‘2018’’ and inserting ‘‘2023’’. 
SEC. 6115. INTEMEDIARY RELENDING PROGRAM. 
Section 310H of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1936b) is amended— 
(1) by redesignating subsection (e) as subsection 
(i); 
(2) by inserting after subsection (d) the fol-
lowing: 
‘‘(e) LIMITATION ON LOAN AMOUNTS.—The maximum 
amount of a loan by an eligible entity described in sub-
section (b) to individuals and entities for a project under 
subsection (c), including the unpaid balance of any existing 
loans, shall be the lesser of— 
‘‘(1) $400,000; and 
‘‘(2) 50 percent of the loan to the eligible entity 
under subsection (a). 
‘‘(f) APPLICATIONS.— 
‘‘(1) IN GENERAL.—To be eligible to receive a 
loan or loan guarantee under subsection (a), an eligi-
ble entity described in subsection (b) shall submit to 
the Secretary an application at such time, in such 
manner, and containing such information as the Sec-
retary may require.
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† HR 2 EAS 
‘‘(2) EVALUATION.—In evaluating applications 
submitted under paragraph (1), the Secretary shall— 
‘‘(A)(i) take into consideration the previous 
performance of an eligible entity in carrying out 
projects under subsection (c); and 
‘‘(ii) in the case of satisfactory performance 
under clause (i), require the eligible entity to 
contribute less equity for subsequent loans with-
out modifying the priority given to subsequent 
applications; and 
‘‘(B) in assigning priorities to applications, 
require an eligible entity to demonstrate that it 
has a governing or advisory board made up of 
business, civic, and community leaders who are 
representative of the communities of the service 
area, without limitation to the size of the service 
area. 
‘‘(g) RETURN OF EQUITY.—The Secretary shall estab-
lish a schedule that is consistent with the amortization 
schedules of the portfolio of loans made or guaranteed under 
subsection (a) for the return of any equity contribution 
made under this section by an eligible entity described in 
subsection (b), if the eligible entity is— 
‘‘(1) current on all principal and interest pay-
ments; and
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† HR 2 EAS 
‘‘(2) in compliance with loan covenants. 
‘‘(h) REGULATIONS.—The Secretary shall promulgate 
regulations and establish procedures reducing the adminis-
trative requirements on eligible entities described in sub-
section (b), including regulations to carry out the amend-
ments made to this section by the Agriculture Improvement 
Act of 2018.’’; and 
(3) in subsection (i) (as so redesignated), by 
striking ‘‘2018’’ and inserting ‘‘2023’’. 
SEC. 6116. SINGLE APPLICATION FOR BROADBAND. 
Section 331 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1981) is amended by adding at 
the end the following: 
‘‘(e) SINGLE APPLICATION FOR BROADBAND.— 
‘‘(1) IN GENERAL.—Subject to paragraphs (2), 
(3), and (4), notwithstanding any other provision of 
law, broadband facilities and broadband service (as 
defined in section 601(b) of the Rural Electrification 
Act of 1936 (7 U.S.C. 950bb(b)), may be funded as 
an incidental part of any grant, loan, or loan guar-
antee provided under this title or any other provision 
of law administered by the Secretary, acting through 
the rural development mission area. 
‘‘(2) LIMITATION.—Except as otherwise author-
ized by an Act of Congress, funding under paragraph
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† HR 2 EAS 
(1) shall not constitute more than 10 percent of any 
loan for a fiscal year for any program under this title 
or any other provision of law administered by the 
Secretary, acting through the rural development mis-
sion area. 
‘‘(3) COMPETITIVE HARM.—The Secretary shall 
not provide funding under paragraph (1) if the fund-
ing would result in competitive harm to any existing 
grant, loan, or loan guarantee described in that para-
graph. 
‘‘(4) ELIGIBILITY.—Funding under paragraph 
(1) shall be granted only for eligible projects described 
in section 601(d)(2) of the Rural Electrification Act 
of 1936 (7 U.S.C. 950bb(d)(2)).’’. 
SEC. 6117. LOAN GUARANTEE LOAN FEES. 
(a) CERTAIN PROGRAMS UNDER CONSOLIDATED FARM 
AND RURAL DEVELOPMENT ACT.—Section 333 of the Con-
solidated Farm and Rural Development Act (7 U.S.C. 
1983) is amended— 
(1) in paragraph (5), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (6)(E), by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following:
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† HR 2 EAS 
‘‘(7) in the case of an insured or guaranteed loan 
issued or modified under section 306(a), charge and 
collect from the lender fees in such amounts as are 
necessary such that— 
‘‘(A) the sum of— 
‘‘(i) the total amount of fees so charged 
for each fiscal year; and 
‘‘(ii) the total of the amounts appro-
priated for the insured or guaranteed loans 
for the fiscal year; is equal to 
‘‘(B) the amount of the costs of subsidies for 
the insured or guaranteed loans for the fiscal 
year.’’. 
(b) RURAL BROADBAND PROGRAM.—Section 601(c) of 
the Rural Electrification Act of 1936 (7 U.S.C. 950bb(c)) 
is amended by adding at the end the following: 
‘‘(3) FEES.—In the case of a loan guarantee 
issued or modified under this section, the Secretary 
shall charge and collect from the lender fees in such 
amounts as are necessary such that— 
‘‘(A) the sum of— 
‘‘(i) the total amount of fees so charged 
for each fiscal year; and
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† HR 2 EAS 
‘‘(ii) the total of the amounts appro-
priated for the loan guarantees for the fiscal 
year; is equal to 
‘‘(B) the amount of the costs of subsidies for 
the loan guarantees for the fiscal year.’’. 
SEC. 6118. RURAL BUSINESS-COOPERATIVE SERVICE PRO-
GRAMS TECHNICAL ASSISTANCE AND TRAIN-
ING. 
The Consolidated Farm and Rural Development Act 
is amended by inserting after section 367 (as added by sec-
tion 5305) the following: 
‘‘SEC. 368. RURAL BUSINESS-COOPERATIVE SERVICE PRO-
GRAMS TECHNICAL ASSISTANCE AND TRAIN-
ING. 
‘‘(a) IN GENERAL.—The Secretary may make grants 
to public bodies, private nonprofit corporations, economic 
development authorities, institutions of higher education, 
federally recognized Indian Tribes, and rural cooperatives 
for the purpose of providing or obtaining technical assist-
ance and training to support funding applications for pro-
grams carried out by the Secretary, acting through the Ad-
ministrator of the Rural Business-Cooperative Service. 
‘‘(b) PURPOSES.—A grant under subsection (a) may 
be used—
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† HR 2 EAS 
‘‘(1) to assist communities in identifying and 
planning for business and economic development 
needs; 
‘‘(2) to identify public and private resources to 
finance business and small and emerging business 
needs; 
‘‘(3) to prepare reports and surveys necessary to 
request financial assistance for businesses in rural 
communities; and 
‘‘(4) to prepare applications for financial assist-
ance. 
‘‘(c) SELECTION PRIORITY.—In selecting recipients of 
grants under this section, the Secretary shall give priority 
to grants serving persistent poverty counties and high pov-
erty communities, as determined by the Secretary. 
‘‘(d) FUNDING.— 
‘‘(1) IN GENERAL.—There is authorized to be ap-
propriated to carry out this section $5,000,000 for 
each of fiscal years 2019 through 2023, to remain 
available until expended. 
‘‘(2) AVAILABILITY.—Any amounts authorized to 
be appropriated under paragraph (1) for any fiscal 
year that are not appropriated for that fiscal year 
may be appropriated for any succeeding fiscal year.’’.
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† HR 2 EAS 
SEC. 6119. NATIONAL RURAL DEVELOPMENT PARTNERSHIP. 
Section 378 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 2008m) is amended in subsections 
(g)(1) and (h) by striking ‘‘2018’’ each place it appears and 
inserting ‘‘2023’’. 
SEC. 6120. GRANTS FOR NOAA WEATHER RADIO TRANSMIT-
TERS. 
Section 379B(d) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2008p(d)) is amended by strik-
ing ‘‘2018’’ and inserting ‘‘2023’’. 
SEC. 6121. RURAL MICROENTREPRENEUR ASSISTANCE PRO-
GRAM. 
Section 379E of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 2008s) is amended— 
(1) in subsection (b)(4)(B)(ii)— 
(A) in the clause heading, by striking 
‘‘MAXIMUM AMOUNT’’ and inserting ‘‘AMOUNT’’; 
(B) by inserting ‘‘not less than 20 percent 
and’’ before ‘‘not more than 25 percent’’; and 
(C) by striking the period at the end and 
inserting the following: ‘‘, subject to— 
‘‘(I) satisfactory performance by 
the microenterprise development orga-
nization under this section, and 
‘‘(II) the availability of funding.’’; 
and
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† HR 2 EAS 
‘‘(2) will be carried out in a rural area; and 
‘‘(3) supports the implementation of a strategic 
community investment plan described in subsection 
(d) on a multisectoral and multijurisdictional basis, 
to include considerations for improving and expand-
ing broadband services as needed. 
‘‘(b) RESERVE.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), the 
Secretary shall reserve not more than 10 percent of 
the funds made available for a fiscal year for covered 
programs for projects that support the implementa-
tion of a strategic community investment plan de-
scribed in subsection (d) on a multisectoral and 
multijurisdictional basis. 
‘‘(2) PERIOD.—Any funds reserved under para-
graph (1) shall only be reserved for the 1-year period 
beginning on the date on which the funds were first 
made available, as determined by the Secretary. 
‘‘(c) APPROVED APPLICATIONS.— 
‘‘(1) IN
GENERAL.—Subject to paragraph (2), 
any applicant who submitted an application under a 
covered program that was approved before the date of 
enactment of this section may amend the application 
to qualify for the funds reserved under subsection (b).
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† HR 2 EAS 
‘‘(2) RURAL
UTILITIES.—Any applicant who 
submitted an application under paragraph (2), (14), 
or (24) of section 306(a), or section 306A or 310B(b), 
that was approved by the Secretary before the date of 
enactment of this section shall be eligible for the funds 
reserved under subsection (b)— 
‘‘(A) on the same basis as an application 
submitted under this section; and 
‘‘(B) until September 30, 2019. 
‘‘(d) STRATEGIC COMMUNITY INVESTMENT PLANS.— 
‘‘(1) IN GENERAL.—The Secretary shall provide 
assistance to rural communities in developing stra-
tegic community investment plans. 
‘‘(2) PLANS.—A strategic community investment 
plan described in paragraph (1) shall include— 
‘‘(A) a variety of activities designed to fa-
cilitate the vision of a rural community for the 
future, including considerations for improving 
and expanding broadband services as needed; 
‘‘(B) participation by multiple stakeholders, 
including local and regional partners; 
‘‘(C) leverage of applicable regional re-
sources; 
‘‘(D) investment from strategic partners, 
such as—
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† HR 2 EAS 
‘‘(i) private organizations; 
‘‘(ii) cooperatives; 
‘‘(iii) other government entities; 
‘‘(iv) Indian Tribes; and 
‘‘(v) philanthropic organizations; 
‘‘(E) clear objectives with the ability to es-
tablish measurable performance metrics; 
‘‘(F) action steps for implementation; and 
‘‘(G) any other elements necessary to ensure 
that the plan results in a comprehensive and 
strategic approach to rural economic develop-
ment, as determined by the Secretary. 
‘‘(3) COORDINATION.—The Secretary shall co-
ordinate with Indian Tribes and local, State, re-
gional, and Federal partners to develop strategic com-
munity investment plans under this subsection. 
‘‘(4) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this subsection $5,000,000 for each of fiscal years 
2019 through 2023, to remain available until ex-
pended.’’. 
SEC. 6124. DELTA REGIONAL AUTHORITY. 
(a) AUTHORIZATION
OF APPROPRIATIONS.—Section 
382M(a) of the Consolidated Farm and Rural Development
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† HR 2 EAS 
Act (7 U.S.C. 2009aa–12(a)) is amended by striking 
‘‘2018’’ and inserting ‘‘2023’’. 
(b) TERMINATION OF AUTHORITY.—Section 382N of 
the Consolidated Farm and Rural Development Act (7 
U.S.C. 2009aa–13) is amended by striking ‘‘2018’’ and in-
serting ‘‘2023’’. 
SEC. 6125. RURAL BUSINESS INVESTMENT PROGRAM. 
Section 384S of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 2009cc–18) is amended by striking 
‘‘2018’’ and inserting ‘‘2023’’. 
Subtitle B—Rural Electrification 
Act of 1936 
SEC. 6201. ELECTRIC LOAN REFINANCING. 
Section 2(a) of the Rural Electrification Act of 1936 
(7 U.S.C. 902(a)) is amended by striking ‘‘loans in’’ and 
inserting ‘‘loans, or refinance loans made by the Secretary 
under this Act, in’’. 
SEC. 6202. TECHNICAL ASSISTANCE FOR RURAL ELEC-
TRIFICATION LOANS. 
Section 2 of the Rural Electrification Act of 1936 (7 
U.S.C. 902) is amended by adding at the end the following: 
‘‘(c) TECHNICAL ASSISTANCE.— 
‘‘(1) IN
GENERAL.—Not later than 180 days 
after the date of enactment of the Agriculture Im-
provement Act of 2018, the Secretary shall enter into
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† HR 2 EAS 
a memorandum of understanding with the Secretary 
of Energy under which the Secretary of Energy shall 
provide technical assistance to applicants for loans 
made under subsection (a) and section 4(a). 
‘‘(2) FORM OF ASSISTANCE.—The technical as-
sistance that the Secretary may request pursuant to 
a memorandum of understanding entered into under 
paragraph (1) may include— 
‘‘(A) direct advice; 
‘‘(B) tools, maps, and training relating 
to— 
‘‘(i) the implementation of demand- 
side management of electric and telephone 
service in rural areas; 
‘‘(ii) energy efficiency and conserva-
tion programs; and 
‘‘(iii) on-grid and off-grid renewable 
energy systems; and 
‘‘(C) any other forms of assistance deter-
mined necessary by the Secretary.’’. 
SEC. 6203. LOANS FOR TELEPHONE SERVICE. 
Section 201 of the Rural Electrification Act of 1936 
(7 U.S.C. 922) is amended—
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† HR 2 EAS 
(1) by striking the section designation and all 
that follows through ‘‘From such sums’’ and inserting 
the following: 
‘‘SEC. 201. LOANS FOR TELEPHONE SERVICE. 
‘‘From such sums’’; 
(2) in the second sentence, by striking ‘‘associa-
tions:’’ and all that follows through ‘‘same sub-
scribers.’’ and inserting ‘‘associations.’’; and 
(3) in the sixth sentence, by striking ‘‘nor shall 
such loan’’ and all that follows through ‘‘writing)’’ 
and inserting ‘‘and’’. 
SEC. 6204. CUSHION OF CREDIT PAYMENTS PROGRAM. 
(a) IN GENERAL.—Section 313 of the Rural Elec-
trification Act of 1936 (7 U.S.C. 940c) is amended— 
(1) in subsection (a)— 
(A) by redesignating paragraphs (2) and 
(3) as paragraphs (3) and (4), respectively; 
(B) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) TERMINATION OF DEPOSIT AUTHORITY.— 
Effective October 1, 2018, no deposits may be made 
under paragraph (1).’’; and 
(C) in paragraph (3) (as so designated), by 
striking ‘‘borrower at a rate of 5 percent per
578 
† HR 2 EAS 
annum.’’ and inserting the following: ‘‘bor-
rower— 
‘‘(A) for each fiscal year through fiscal year 
2018, at a rate of 5 percent; and 
‘‘(B) for fiscal year 2019 and each fiscal 
year thereafter, at a rate equal to— 
‘‘(i) the average interest rate used to 
make payments on the 5-year Treasury note 
for the most recent calendar quarter; but 
‘‘(ii) not greater than 5 percent.’’; 
(2) in subsection (b)(2)— 
(A) in subparagraph (A)— 
(i) by striking ‘‘The Secretary’’ and 
inserting the following: 
‘‘(i) IN GENERAL.—The Secretary’’; 
(ii) in clause (i) (as so designated), by 
striking ‘‘Fund to which shall be credited, 
on a monthly basis,’’ and inserting the fol-
lowing: ‘‘Fund, to be known as the ‘‘rural 
economic development subaccount’’ (referred 
to in this paragraph as the ‘‘subaccount’’). 
‘‘(ii) DIFFERENTIAL
PAYMENTS.—For 
each month through September 2021, the 
Secretary shall credit to the subaccount’’; 
and
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† HR 2 EAS 
(iii) in clause (ii) (as so designated), 
by striking ‘‘the 5 percent’’ and all that fol-
lows through the period at the end and in-
serting ‘‘5 percent.’’; 
(B) in subparagraph (B)— 
(i) by striking ‘‘is authorized, from the 
interest differential sums credited this sub-
account’’ and inserting ‘‘shall, from interest 
differential sums credited under subpara-
graph (A)(ii) to the subaccount’’; and 
(ii) by striking ‘‘to provide’’ and in-
serting ‘‘provide’’; 
(C) in subparagraph (E), by striking ‘‘rural 
economic development’’; and 
(D) by adding at the end the following: 
‘‘(F) FUNDING.— 
‘‘(i) MANDATORY
FUNDING.—Of the 
funds of the Commodity Credit Corporation, 
the Secretary shall credit to the subaccount 
to use for the cost of grants and loans under 
subparagraphs (B) through (E) $5,000,000 
for each of fiscal years 2022 and 2023, to 
remain available until expended. 
‘‘(ii) AUTHORIZATION OF APPROPRIA-
TIONS.—In addition to other amounts
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† HR 2 EAS 
available in the subaccount for the cost of 
grants and loans under subparagraphs (B) 
through (E), there is authorized to be ap-
propriated to the subaccount for the cost of 
the grants and loans $5,000,000 for each of 
fiscal years 2022 and 2023, to remain 
available until expended.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 12(b)(3)(D) of the Rural Electrifica-
tion Act of 1936 (7 U.S.C. 912(b)(3)(D)) is amended 
by 
striking 
‘‘313(b)(2)(A)’’ 
and 
inserting 
‘‘313(b)(2)(A)(ii)’’. 
(2) Section 313A of the Rural Electrification Act 
of 1936 (7 U.S.C. 940c–1) is amended in subsections 
(c)(4)(A) and (e)(2) by striking ‘‘313(b)(2)(A)’’ each 
place it appears and inserting ‘‘313(b)(2)(A)(i)’’. 
SEC. 6205. GUARANTEES FOR BONDS AND NOTES ISSUED 
FOR ELECTRIFICATION OR TELEPHONE PUR-
POSES. 
(a) IN GENERAL.—Section 313A of the Rural Elec-
trification Act of 1936 (7 U.S.C. 940c–1) is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘Subject to’’ and inserting 
the following: 
‘‘(1) GUARANTEES.—Subject to’’;
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† HR 2 EAS 
(B) in paragraph (1) (as so designated), by 
striking ‘‘basis’’ and all that follows through the 
period at the end and inserting ‘‘basis, if the 
proceeds of the bonds or notes are used to make 
utility infrastructure loans, or refinance bonds 
or notes issued for those purposes, to a borrower 
that has at any time received, or is eligible to re-
ceive, a loan under this Act.’’; and 
(C) by adding at the end the following: 
‘‘(2) TERMS.—A bond or note guaranteed under 
this section shall, by agreement between the Secretary 
and the borrower— 
‘‘(A) be for a term of 30 years (or another 
term of years that the Secretary determines is 
appropriate); and 
‘‘(B) be repaid by the borrower— 
‘‘(i) in periodic installments of prin-
cipal and interest; 
‘‘(ii) in periodic installments of inter-
est and, at the end of the term of the bond 
or note, as applicable, by the repayment of 
the outstanding principal; or 
‘‘(iii) through a combination of the 
methods described in clauses (i) and (ii).’’; 
(2) in subsection (b)—
582 
† HR 2 EAS 
(A) in paragraph (1), by striking ‘‘elec-
trification’’ and all that follows through the pe-
riod at the end and inserting ‘‘purposes de-
scribed in subsection (a)(1).’’; 
(B) by striking paragraph (2); 
(C) by redesignating paragraphs (3) and 
(4) as paragraphs (2) and (3), respectively; and 
(D) in paragraph (2) (as so redesignated)— 
(i) in subparagraph (A), by striking 
‘‘for electrification or telephone purposes’’ 
and inserting ‘‘for eligible purposes de-
scribed in subsection (a)(1)’’; and 
(ii) in subparagraph (C), by striking 
‘‘subsection (a)’’ and inserting ‘‘subsection 
(a)(1)’’; and 
(3) in subsection (f), by striking ‘‘2018’’ and in-
serting ‘‘2023’’. 
(b) ADMINISTRATION.—Beginning on the date of enact-
ment of the Agriculture Improvement Act of 2018, the Sec-
retary shall continue to carry out section 313A of the Rural 
Electrification Act of 1936 (7 U.S.C. 940c–1) (as amended 
by subsection (a)) under a Notice of Solicitation of Applica-
tions until the date on which any regulations necessary to 
carry out the amendments made by subsection (a) are fully 
implemented.
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† HR 2 EAS 
SEC. 6206. ACCESS TO BROADBAND TELECOMMUNICATIONS 
SERVICES IN RURAL AREAS. 
Section 601 of the Rural Electrification Act of 1936 
(7 U.S.C. 950bb) is amended— 
(1) in subsection (a), by striking ‘‘loans and’’ 
and inserting ‘‘grants, loans, and’’; 
(2) in subsection (c)— 
(A) in the subsection heading, by striking 
‘‘LOANS AND’’ and inserting ‘‘GRANTS, LOANS, 
AND’’; 
(B) in paragraph (1), by inserting ‘‘make 
grants and’’ after ‘‘Secretary shall’’; 
(C) by striking paragraph (2) and inserting 
the following: 
‘‘(2) PRIORITY.— 
‘‘(A) IN
GENERAL.—In making grants, 
loans, or loan guarantees under paragraph (1), 
the Secretary shall— 
‘‘(i) give the highest priority to appli-
cations for projects to provide broadband 
service to unserved rural communities that 
do not have any residential broadband serv-
ice; 
‘‘(ii) give priority to applications for 
projects to provide the maximum level of 
broadband service to the greatest proportion
584 
† HR 2 EAS 
of rural households in the proposed service 
area identified in the application; 
‘‘(iii) give priority to applications for 
projects to provide rapid and expanded de-
ployment of fixed and mobile broadband on 
cropland and ranchland within a service 
territory for use in various applications of 
precision agriculture; 
‘‘(iv) provide equal consideration to all 
eligible entities, including those that have 
not previously received grants, loans, or 
loan guarantees under paragraph (1); and 
‘‘(v) with respect to 2 or more applica-
tions that are given the same priority under 
clause (i), give priority to an application 
that requests less grant funding than loan 
funding. 
‘‘(B) OTHER.—After giving priority to the 
applications described in clauses (i) and (ii) of 
subparagraph (A), the Secretary shall then give 
priority to applications— 
‘‘(i) for projects to provide broadband 
service to rural communities— 
‘‘(I) with a population of less 
than 10,000 permanent residents;
585 
† HR 2 EAS 
‘‘(II) that are experiencing out-
migration and have adopted a strategic 
community investment plan under sec-
tion 379H(d) that includes consider-
ations for improving and expanding 
broadband service; 
‘‘(III) with a high percentage of 
low income families or persons (as de-
fined in section 501(b) of the Housing 
Act of 1949 (42 U.S.C. 1471(b)); or 
‘‘(IV) that are isolated from other 
significant population centers; and 
‘‘(ii) that were developed with the par-
ticipation of, and will receive a substantial 
portion of the funding for the project from, 
1 or more stakeholders, including— 
‘‘(I) State, local, and tribal gov-
ernments; 
‘‘(II) nonprofit institutions; 
‘‘(III) community anchor institu-
tions, such as— 
‘‘(aa) public libraries; 
‘‘(bb) elementary schools and 
secondary schools (as defined in 
section 8101 of the Elementary
586 
† HR 2 EAS 
and Secondary Education Act of 
1965 (20 U.S.C. 7801)); 
‘‘(cc) institutions of higher 
education; and 
‘‘(dd) health care facilities; 
‘‘(IV) private entities; and 
‘‘(V) philanthropic organizations. 
‘‘(C) IDENTIFICATION OF UNSERVED COM-
MUNITIES.— 
‘‘(i) IN GENERAL.—In the case of an 
application given the highest priority under 
subparagraph (A)(i), the Secretary shall 
confirm that each unserved rural commu-
nity identified in the application is eligible 
for funding by— 
‘‘(I) conferring with and obtain-
ing data from the Chair of the Federal 
Communications Commission and the 
Administrator of the National Tele-
communications and Information Ad-
ministration with respect to the service 
level in the service area proposed in the 
application; 
‘‘(II) reviewing any other source 
that is relevant to service data valida-
587 
† HR 2 EAS 
tion, as determined by the Secretary; 
and 
‘‘(III) 
performing 
site-specific 
testing to verify the unavailability of 
any residential broadband service in 
the unserved rural community. 
‘‘(ii) ADJUSTMENTS.—Not less often 
than once every 2 years, the Secretary shall 
review, and may adjust through notice pub-
lished in the Federal Register, the unserved 
communities identified under clause (i).’’; 
(D) by redesignating paragraph (3) (as 
added by section 6117(b)) as paragraph (4); and 
(E) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) GRANT AMOUNTS.— 
‘‘(A) 
DEFINITION
OF
DEVELOPMENT 
COSTS.—In this paragraph, the term ‘develop-
ment costs’ means costs of— 
‘‘(i) construction, including labor and 
materials; 
‘‘(ii) project applications; and 
‘‘(iii) other development activities, as 
determined by the Secretary.
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† HR 2 EAS 
‘‘(B) ELIGIBILITY.—To be eligible for a 
grant under this section, the project that is the 
subject of the grant shall be carried out in a 
rural area. 
‘‘(C) MAXIMUM.—Except as provided in 
subparagraph (D), the amount of any grant 
made under this section shall not exceed 50 per-
cent of the development costs of the project for 
which the grant is provided. 
‘‘(D) SECRETARIAL
AUTHORITY
TO
AD-
JUST.—The Secretary may make grants of up to 
75 percent of the development costs of the project 
for which the grant is provided to an eligible en-
tity if the Secretary determines that the project 
serves— 
‘‘(i) an area of rural households de-
scribed in paragraph (2)(A)(ii); and 
‘‘(ii) a rural community described in 
any of subclauses (I) through (IV) of para-
graph (2)(B)(i).’’; 
(3) in subsection (d)— 
(A) in paragraph (1)— 
(i) in subparagraph (A)—
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† HR 2 EAS 
(I) in the matter preceding clause 
(i), by striking ‘‘loan or’’ and inserting 
‘‘grant, loan, or’’; 
(II) in clause (ii), by striking ‘‘a 
loan application’’ and inserting ‘‘an 
application’’; and 
(III) in clause (iii)— 
(aa) by striking ‘‘service’’ 
and inserting ‘‘infrastructure’’; 
(bb) by striking ‘‘loan’’ the 
first place it appears; 
(cc) by striking ‘‘3’’ and in-
serting ‘‘5’’; and 
(dd) by striking ‘‘proceeds 
from the loan made or guaranteed 
under this section are’’ and in-
serting ‘‘assistance under this sec-
tion is’’; and 
(ii) by adding at the end the following: 
‘‘(C) RELATION
TO
UNIVERSAL
SERVICE 
HIGH-COST SUPPORT.—The Secretary shall co-
ordinate with the Federal Communications Com-
mission to ensure that any grants, loans, or loan 
guarantees made under this section complement 
and do not conflict with universal service high-
590 
† HR 2 EAS 
cost support (as defined in section 54.5 of title 
47, Code of Federal Regulations, or any successor 
regulation) provided by the Commission.’’; 
(B) in paragraph (2)— 
(i) in subparagraph (A)— 
(I) in the matter preceding clause 
(i)— 
(aa) by striking ‘‘the pro-
ceeds of a loan made or guaran-
teed’’ and inserting ‘‘assistance’’; 
and 
(bb) by striking ‘‘for the loan 
or loan guarantee’’ and inserting 
‘‘of the eligible entity’’; 
(II) in clause (i)— 
(aa) by striking ‘‘15’’ and 
inserting ‘‘90’’; and 
(bb) by striking ‘‘level of 
broadband service’’ and inserting 
‘‘level of fixed broadband service, 
whether terrestrial or wireless,’’; 
and 
(III) in clause (ii), by striking 
‘‘3’’ and inserting ‘‘2’’;
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† HR 2 EAS 
(ii) in subparagraph (C), by striking 
clause (ii) and inserting the following: 
‘‘(ii) EXCEPTIONS.—Clause (i) shall 
not apply if the applicant is eligible for 
funding under another title of this Act.’’; 
(C) in paragraph (3), in subparagraph (A), 
by striking ‘‘loan or’’ and inserting ‘‘grant, loan, 
or’’; 
(D) in paragraph (4), by striking ‘‘loan or’’ 
and inserting ‘‘grant, loan, or’’; 
(E) in paragraph (5)(A), in the matter pre-
ceding clause (i), by striking ‘‘loan or’’ and in-
serting ‘‘grant, loan, or’’; 
(F) in paragraph (6), by striking ‘‘loan or’’ 
and inserting ‘‘grant, loan, or’’; 
(G) by redesignating paragraph (7) as sub-
paragraph (B) and indenting appropriately; 
(H) by inserting after paragraph (6) the 
following: 
‘‘(7) APPLICATION PROCESS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
provide to an applicant of a grant, loan, or loan 
guarantee under this section feedback and deci-
sions on funding in a timely manner.’’;
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† HR 2 EAS 
(I) in paragraph (7)(B) (as so redesig-
nated), by striking ‘‘may seek a determination of 
area eligibility prior to preparing a loan appli-
cation under this section.’’ and inserting the fol-
lowing: ‘‘may, before preparing an application 
under this section— 
‘‘(i) seek a determination of area eligi-
bility; and 
‘‘(ii) submit to the Secretary a pro-
posal for a project, on which the Secretary 
shall provide feedback regarding how the 
proposal could be changed to improve the 
likelihood that the Secretary would approve 
the application.’’; 
(J) in paragraph (10)(A), by striking ‘‘15’’ 
and inserting ‘‘30’’; and 
(K) by adding at the end the following: 
‘‘(11) TECHNICAL ASSISTANCE AND TRAINING.— 
‘‘(A) IN
GENERAL.—The Secretary may 
provide eligible entities described in paragraph 
(1) that are applying for a grant, loan, or loan 
guarantee for a project described in subsection 
(c)(2)(A)(i) technical assistance and training— 
‘‘(i) to prepare reports and surveys 
necessary to request grants, loans, and loan
593 
† HR 2 EAS 
guarantees under this section for broadband 
deployment; 
‘‘(ii) to improve management, includ-
ing financial management, relating to the 
proposed broadband deployment; 
‘‘(iii) to prepare applications for 
grants, loans, and loan guarantees under 
this section; or 
‘‘(iv) to assist with other areas of need 
identified by the Secretary. 
‘‘(B) FUNDING.—Not less than 3 percent 
and not more than 5 percent of amounts appro-
priated to carry out this section for a fiscal year 
shall be used for technical assistance and train-
ing under this paragraph.’’; 
(4) in subsection (e)(1)— 
(A) in subparagraph (A), by striking ‘‘4- 
Mbps’’ and inserting ‘‘25-Mbps’’; and 
(B) in subparagraph (B), by striking ‘‘1- 
Mbps’’ and inserting ‘‘3-Mbps’’; 
(5) in subsection (f), by striking ‘‘make a loan 
or loan guarantee’’ and inserting ‘‘provide assist-
ance’’; 
(6) in subsection (j)—
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† HR 2 EAS 
(A) in the matter preceding paragraph (1), 
by striking ‘‘loan and loan guarantee’’; 
(B) in paragraph (1), by inserting ‘‘grants 
and’’ after ‘‘number of’’; 
(C) in paragraph (2)— 
(i) in subparagraph (A), by striking 
‘‘loan’’; and 
(ii) in subparagraph (B), by striking 
‘‘loans and’’ and inserting ‘‘grants, loans, 
and’’; and 
(D) in paragraph (3), by striking ‘‘loan’’; 
(7) by redesignating subsections (k) and (l) as 
subsections (m) and (n), respectively; 
(8) by inserting after subsection (j) the following: 
‘‘(k) BROADBAND BUILDOUT DATA.—As a condition of 
receiving a grant, loan, or loan guarantee under this sec-
tion, a recipient of assistance shall provide to the Secretary 
complete, reliable, and precise geolocation information that 
indicates the location of new broadband service that is being 
provided or upgraded within the service territory supported 
by the grant, loan, or loan guarantee not later than 30 days 
after the earlier of— 
‘‘(1) the date of completion of any project mile-
stone established by the Secretary; or 
‘‘(2) the date of completion of the project.
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† HR 2 EAS 
‘‘(l) ENVIRONMENTAL REVIEWS.—The Secretary may 
obligate, but not disperse, funds under this Act before the 
completion of otherwise required environmental, historical, 
or other types of reviews if the Secretary determines that 
a subsequent site-specific review shall be adequate and eas-
ily accomplished for the location of towers, poles, or other 
broadband facilities in the service area of the borrower 
without compromising the project or the required reviews.’’; 
(9) in subsection (m) (as so redesignated)— 
(A) in paragraph (1)— 
(i) by striking ‘‘$25,000,000’’ and in-
serting ‘‘$150,000,000’’; and 
(ii) by striking ‘‘2008 through 2018’’ 
and inserting ‘‘2019 through 2023’’; and 
(B) in paragraph (2)(A)— 
(i) in clause (i), by striking ‘‘and’’ at 
the end; 
(ii) in clause (ii), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(iii) set aside at least 1 percent to be 
used for— 
‘‘(I) conducting oversight under 
this section; and
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† HR 2 EAS 
‘‘(II) implementing accountability 
measures and related activities author-
ized under this section.’’; and 
(10) in subsection (n) (as so redesignated)— 
(A) by striking ‘‘loan or’’ and inserting 
‘‘grant, loan, or’’; and 
(B) by striking ‘‘2018’’ and inserting 
‘‘2023’’. 
SEC. 6207. COMMUNITY CONNECT GRANT PROGRAM. 
Title VI of the Rural Electrification Act of 1936 (7 
U.S.C. 950bb et seq.) is amended by adding at the end the 
following: 
‘‘SEC. 604. COMMUNITY CONNECT GRANT PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE BROADBAND SERVICE.—The term 
‘eligible broadband service’ means broadband service 
that has the capability to transmit data at a speed 
specified by the Secretary, which may not be less than 
the applicable minimum download and upload speeds 
established by the Federal Communications Commis-
sion in defining the term ‘advanced telecommuni-
cations capability’ for purposes of section 706 of the 
Telecommunications Act of 1996 (47 U.S.C. 1302).
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† HR 2 EAS 
‘‘(2) ELIGIBLE SERVICE AREA.—The term ‘eligi-
ble service area’ means an area in which broadband 
service capacity is less than— 
‘‘(A) a 10-Mbps downstream transmission 
capacity; and 
‘‘(B) a 1-Mbps upstream transmission ca-
pacity. 
‘‘(3) ELIGIBLE ENTITY.— 
‘‘(A) IN GENERAL.—The term ‘eligible enti-
ty’ means a legally organized entity that— 
‘‘(i) is— 
‘‘(I) an incorporated organiza-
tion; 
‘‘(II) an Indian Tribe or Tribal 
organization; 
‘‘(III) a State; 
‘‘(IV) a unit of local government; 
or 
‘‘(V) any other legal entity, in-
cluding a cooperative, a private cor-
poration, or a limited liability com-
pany, that is organized on a for-profit 
or a not-for-profit basis; and 
‘‘(ii) has the legal capacity and au-
thority to enter into a contract, to comply
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† HR 2 EAS 
with applicable Federal laws, and to own 
and operate broadband facilities, as pro-
posed in the application submitted by the 
entity for a grant under the Program. 
‘‘(B) EXCLUSIONS.—The term ‘eligible enti-
ty’ does not include— 
‘‘(i) an individual; or 
‘‘(ii) a partnership. 
‘‘(4) PROGRAM.—The term ‘Program’ means the 
Community Connect Grant Program established 
under subsection (b). 
‘‘(5) RURAL AREA.—The term ‘rural area’ has 
the meaning given the term in section 601(b)(3)(A). 
‘‘(b) ESTABLISHMENT.—The Secretary shall establish 
a program, to be known as the ‘Community Connect Grant 
Program’, to provide grants to eligible entities to finance 
broadband transmission in rural areas. 
‘‘(c) ELIGIBLE PROJECTS.—An eligible entity that re-
ceives a grant under the Program shall use the grant to 
carry out a project that— 
‘‘(1) provides eligible broadband service to, with-
in the proposed eligible service area described in the 
application submitted by the eligible entity— 
‘‘(A) each essential community facility 
funded under section 306(a) of the Consolidated
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† HR 2 EAS 
Farm and Rural Development Act (7 U.S.C. 
1926(a)); and 
‘‘(B) any required facilities necessary to 
offer that eligible broadband service to each resi-
dential and business customer; and 
‘‘(2) for not less than 2 years— 
‘‘(A) 
furnishes 
free 
wireless 
eligible 
broadband service to a community center de-
scribed in subsection (d)(1)(B); 
‘‘(B) provides not fewer than 2 computer 
access points for that free wireless eligible 
broadband service; and 
‘‘(C) covers the cost of bandwidth to provide 
free eligible broadband service to each essential 
community facility funded under section 306(a) 
of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1926(a)) within the proposed 
eligible service area described in the application 
submitted by the eligible entity. 
‘‘(d) USES OF GRANT FUNDS.— 
‘‘(1) IN GENERAL.—An eligible entity that re-
ceives a grant under the Program may use the grant 
for— 
‘‘(A) the construction, acquisition, or leas-
ing of facilities (including spectrum), land, or
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† HR 2 EAS 
buildings to deploy eligible broadband service; 
and 
‘‘(B) the improvement, expansion, construc-
tion, or acquisition of a community center with-
in the proposed eligible service area described in 
the application submitted by the eligible entity. 
‘‘(2) INELIGIBLE USES.—An eligible entity that 
receives a grant under the Program shall not use the 
grant for— 
‘‘(A) the duplication of any existing 
broadband service provided by another entity in 
the eligible service area; or 
‘‘(B) operating expenses, except as provided 
in— 
‘‘(i) subsection (c)(2)(C) with respect to 
free wireless eligible broadband service; and 
‘‘(ii) paragraph (1)(A) with respect to 
spectrum. 
‘‘(3) FREE ACCESS FOR COMMUNITY CENTERS.— 
Of the amounts provided to an eligible entity under 
a grant under the Program, the eligible entity shall 
use to carry out paragraph (1)(B) not greater than 
the lesser of— 
‘‘(A) 10 percent; and 
‘‘(B) $150,000.
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† HR 2 EAS 
‘‘(e) MATCHING FUNDS.— 
‘‘(1) IN GENERAL.—An eligible entity that re-
ceives a grant under the Program shall provide a cash 
contribution in an amount that is not less than 15 
percent of the amount of the grant. 
‘‘(2) REQUIREMENTS.—A cash contribution de-
scribed in paragraph (1)— 
‘‘(A) shall be used solely for the project for 
which the eligible entity receives a grant under 
the Program; and 
‘‘(B) shall not include any Federal funds, 
unless a Federal statute specifically provides that 
those Federal funds may be considered to be from 
a non-Federal source. 
‘‘(f) APPLICATIONS.— 
‘‘(1) IN GENERAL.—To be eligible to receive a 
grant under the Program, an eligible entity shall sub-
mit to the Secretary an application at such time, in 
such manner, and containing such information as the 
Secretary may require. 
‘‘(2) REQUIREMENT.—An application submitted 
by an eligible entity under paragraph (1) shall in-
clude documentation sufficient to demonstrate the 
availability of funds to satisfy the requirement of sub-
section (e).
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‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$50,000,000 for each fiscal year.’’. 
SEC. 6208. TRANSPARENCY IN THE TELECOMMUNICATIONS 
INFRASTRUCTURE LOAN PROGRAM. 
Title VI of the Rural Electrification Act of 1936 (7 
U.S.C. 950bb et seq.) (as amended by section 6207) is 
amended by adding at the end the following: 
‘‘SEC. 605. TRANSPARENCY IN THE TELECOMMUNICATIONS 
INFRASTRUCTURE LOAN PROGRAM. 
‘‘(a) PUBLIC NOTICE OF APPLICATIONS FOR ASSIST-
ANCE.—The Secretary shall publish in the Federal Register, 
and promptly make available to the public, a fully search-
able database on the website of Rural Utilities Service that 
contains, at a minimum— 
‘‘(1) notice of each application for a loan from 
the Telecommunications Infrastructure Loan and 
Guarantee Program under this Act describing the ap-
plication, including— 
‘‘(A) the identity of the applicant; 
‘‘(B) a description of the application, in-
cluding— 
‘‘(i) each census block proposed to be 
served by the applicant; and
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† HR 2 EAS 
‘‘(ii) the amount and type of support 
requested by the applicant; 
‘‘(C) the status of the application; 
‘‘(D) the estimated number and proportion 
of households in each census block under sub-
paragraph (B)(i) that are without telecommuni-
cations service; and 
‘‘(E) a list of the census block groups, in a 
manner specified by the Secretary, to which the 
applicant proposes to provide service; and 
‘‘(2) notice of each borrower receiving assistance 
under the Telecommunications Infrastructure Loan 
and Guarantee Program under this Act, including— 
‘‘(A) the name of the borrower; 
‘‘(B) the type of assistance being received; 
and 
‘‘(C) the purpose for which the borrower is 
receiving the assistance; and 
‘‘(3) such other information as is sufficient to 
allow the public to understand the assistance provided 
under the Telecommunications Infrastructure Loan 
and Guarantee Program under this Act. 
‘‘(b) OPPORTUNITY FOR THE PUBLIC TO SUBMIT IN-
FORMATION.—The Secretary shall, with respect to an appli-
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† HR 2 EAS 
cation for a loan under the Telecommunications Infrastruc-
ture Loan and Guarantee Program under this Act— 
‘‘(1) for a period of not less than 15 days after 
the date on which the notice required by subsection 
(a)(1) is provided with respect to the application, 
provide an opportunity for an interested party to vol-
untarily submit information concerning the services 
that the party offers in the census blocks described in 
subsection (a)(1)(B)(i), such that the Secretary may 
assess whether approving the application would result 
in any duplication of lines, facilities, or systems that 
are providing reasonably adequate services; and 
‘‘(2) if no interested party submits information 
under paragraph (1), consider the number of pro-
viders in the census block group to be established by 
using broadband deployment data from the most re-
cent Form 477 data collection of the Federal Commu-
nications Commission.’’. 
SEC. 6209. REFINANCING OF BROADBAND AND TELEPHONE 
LOANS. 
(a) IN GENERAL.—Section 201 of the Rural Elec-
trification Act of 1936 (7 U.S.C. 922) is amended, in the 
fifth sentence, by striking ‘‘furnishing telephone service in 
rural areas:’’ and all that follows through ‘‘40 per centum 
of any loan made under this title.’’ and inserting ‘‘fur-
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† HR 2 EAS 
nishing telephone service in rural areas, including indebted-
ness of recipients on another telecommunications loan made 
under this Act.’’. 
(b) BROADBAND.—Section 601(i) of the Rural Elec-
trification Act of 1936 (7 U.S.C. 950bb(i)) is amended by 
striking ‘‘Act if the use of’’ and all that follows through 
the period at the end and inserting ‘‘Act, or on any other 
loan if that loan would have been for an eligible purpose 
under this Act.’’. 
SEC. 6210. CYBERSECURITY AND GRID SECURITY IMPROVE-
MENTS. 
Title III of the Rural Electrification Act of 1936 (7 
U.S.C. 931 et seq.) is amended by adding at the end the 
following: 
‘‘SEC. 319. CYBERSECURITY AND GRID SECURITY IMPROVE-
MENTS. 
‘‘(a) DEFINITION OF CYBERSECURITY AND GRID SECU-
RITY IMPROVEMENTS.—In this section, the term ‘cybersecu-
rity and grid security improvements’ means investment in 
the development, expansion, and modernization of rural 
utility infrastructure that addresses known cybersecurity 
and grid security risks. 
‘‘(b) LOANS AND LOAN GUARANTEES.—The Secretary 
may make or guarantee loans under this title and title I 
for cybersecurity and grid security improvements.’’.
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† HR 2 EAS 
Subtitle C—Miscellaneous 
SEC. 6301. DISTANCE LEARNING AND TELEMEDICINE. 
(a) SUBSTANCE USE DISORDER TREATMENT SERV-
ICES.—Section 2333(c) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 950aaa–2(c)) is 
amended by adding at the end the following: 
‘‘(5) SUBSTANCE
USE
DISORDER
TREATMENT 
SERVICES.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary shall make available 
not less than 20 percent of amounts made avail-
able under section 2335A for financial assistance 
under this chapter for substance use disorder 
treatment services. 
‘‘(B) EXCEPTION.—In the case of a fiscal 
year for which the Secretary determines that 
there are not sufficient qualified applicants to 
receive financial assistance for substance use dis-
order treatment services to reach the 20-percent 
requirement under subparagraph (A), the Sec-
retary may make available less than 20 percent 
of amounts made available under section 2335A 
for those services.’’. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—Section 
2335A of the Food, Agriculture, Conservation, and Trade
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† HR 2 EAS 
Act of 1990 (7 U.S.C. 950aaa–5) is amended by striking 
‘‘2018’’ and inserting ‘‘2023’’. 
(c) CONFORMING AMENDMENT.—Section 1(b) of Public 
Law 102–551 (7 U.S.C. 950aaa note) is amended by strik-
ing ‘‘2018’’ and inserting ‘‘2023’’. 
SEC. 6302. RURAL ENERGY SAVINGS PROGRAM. 
Section 6407 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 8107a) is amended— 
(1) in subsection (b)(2), by striking ‘‘efficiency.’’ 
and inserting ‘‘efficiency (including cost-effective on- 
or off-grid renewable energy or energy storage sys-
tems).’’; 
(2) in subsection (c)— 
(A) 
by 
redesignating 
paragraphs 
(4) 
through (7) as paragraphs (5) through (8), re-
spectively; 
(B) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) ELIGIBILITY FOR OTHER LOANS.—The Sec-
retary shall not include any debt incurred by a bor-
rower under this section in the calculation of the debt- 
equity ratio of the borrower for purposes of eligibility 
for loans under the Rural Electrification Act of 1936 
(7 U.S.C. 901 et seq.).’’;
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† HR 2 EAS 
(C) in subparagraph (B) of paragraph (5) 
(as so redesignated), by striking ‘‘(6)’’ and in-
serting ‘‘(7)’’; and 
(D) by adding at the end the following: 
‘‘(9) ACCOUNTING.—The Secretary shall take ap-
propriate steps to streamline the accounting require-
ments on borrowers under this section while main-
taining adequate assurances of the repayment of the 
loans.’’; 
(3) in subsection (d)(1)(A), by striking ‘‘3 per-
cent’’ and inserting ‘‘6 percent’’; 
(4) by redesignating subsection (h) as subsection 
(i); 
(5) by inserting after subsection (g) the fol-
lowing: 
‘‘(h) PUBLICATION.—Not later than 120 days after the 
end of each fiscal year, the Secretary shall publish a de-
scription of— 
‘‘(1) the number of applications received under 
this section for that fiscal year; 
‘‘(2) the number of loans made to eligible entities 
under this section for that fiscal year; and 
‘‘(3) the recipients of the loans described in para-
graph (2).’’; and
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† HR 2 EAS 
(6) in subsection (i) (as so redesignated), by 
striking ‘‘2018’’ and inserting ‘‘2023’’. 
SEC. 6303. RURAL HEALTH AND SAFETY EDUCATION PRO-
GRAMS. 
(a) IN GENERAL.—Section 502(i) of the Rural Devel-
opment Act of 1972 (7 U.S.C. 2662(i)) is amended— 
(1) by redesignating paragraph (5) as para-
graph (6); and 
(2) by inserting after paragraph (4) the fol-
lowing: 
‘‘(5) SUBSTANCE USE DISORDER EDUCATION AND 
PREVENTION.—In making grants under this sub-
section, the Secretary shall give priority to an appli-
cant that will use the grant for substance use disorder 
education, prevention, or treatment.’’. 
(b) TECHNICAL AMENDMENTS.—Title V of the Rural 
Development Act of 1972 (7 U.S.C. 2661 et seq.) (as amend-
ed by subsection (a)) is amended— 
(1) in section 502, in the matter preceding sub-
section (a), by inserting ‘‘(referred to in this title as 
the ‘Secretary’)’’ after ‘‘Agriculture’’; and 
(2) by striking ‘‘Secretary of Agriculture’’ each 
place it appears (other than in section 502 in the 
matter preceding subsection (a)) and inserting ‘‘Sec-
retary’’.
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† HR 2 EAS 
SEC. 6304. NORTHERN BORDER REGIONAL COMMISSION RE-
AUTHORIZATION. 
(a) ADMINISTRATIVE EXPENSES OF REGIONAL COM-
MISSIONS.—Section 15304(c)(3)(A) of title 40, United 
States Code, is amended by striking ‘‘unanimous’’ and in-
serting ‘‘majority’’. 
(b) ECONOMIC AND INFRASTRUCTURE DEVELOPMENT 
GRANTS.—Section 15501 of title 40, United States Code, 
is amended— 
(1) in subsection (a)— 
(A) in paragraph (7), by striking ‘‘and’’ at 
the end; 
(B) by redesignating paragraph (8) as 
paragraph (9); and 
(C) by inserting after paragraph (7) the fol-
lowing: 
‘‘(8) to grow the capacity for successful commu-
nity economic development in its region; and’’; 
(2) in subsection (b), by striking ‘‘paragraphs 
(1) through (3)’’ and inserting ‘‘paragraph (1), (2), 
(3), or (7)’’; and 
(3) in subsection (f), by striking the period at the 
end and inserting ‘‘, except that financial assistance 
may be used as otherwise authorized by this subtitle 
to attract businesses to the region from outside the 
United States.’’.