In the Senate of the United States,
December 21, 1995.
Resolved, That the bill from the House of Representa-
tives (H.R. 2029) entitled ‘‘An Act to to amend the Farm
Credit Act of 1971 to provide regulatory relief, and for other
purposes’’, do pass with the following
AMENDMENTS:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Farm Credit System Reform Act of 1996’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—AGRICULTURAL MORTGAGE SECONDARY MARKET
Sec. 101. Definition of real estate.
Sec. 102. Definition of certified facility.
Sec. 103. Duties of Federal Agricultural Mortgage Corporation.
Sec. 104. Powers of the Corporation.
Sec. 105. Federal reserve banks as depositaries and fiscal agents.
Sec. 106. Certification of agricultural mortgage marketing facilities.
Sec. 107. Guarantee of qualified loans.
Sec. 108. Mandatory reserves and subordinated participation interests elimi-
nated.
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Sec. 109. Standards requiring diversified pools.
Sec. 110. Small farms.
Sec. 111. Definition of an affiliate.
Sec. 112. State usury laws superseded.
Sec. 113. Extension of capital transition period.
Sec. 114. Minimum capital level.
Sec. 115. Critical capital level.
Sec. 116. Enforcement levels.
Sec. 117. Recapitalization of the Corporation.
Sec. 118. Liquidation of the Federal Agricultural Mortgage Corporation.
TITLE II—REGULATORY RELIEF
Sec. 201. Compensation of association personnel.
Sec. 202. Use of private mortgage insurance.
Sec. 203. Removal of certain borrower reporting requirement.
Sec. 204. Reform of regulatory limitations on dividend, member business, and
voting practices of eligible farmer-owned cooperatives.
Sec. 205. Removal of Federal Government certification requirement for certain
private sector financings.
Sec. 206. Borrower stock.
Sec. 207. Disclosure relating to adjustable rate loans.
Sec. 208. Borrowers’ rights.
Sec. 209. Formation of administrative service entities.
Sec. 210. Joint management agreements.
Sec. 211. Dissemination of quarterly reports.
Sec. 212. Regulatory review.
Sec. 213. Examination of farm credit system institutions.
Sec. 214. Conservatorships and receiverships.
Sec. 215. Farm Credit Insurance Fund operations.
Sec. 216. Examinations by the Farm Credit System Insurance Corporation.
Sec. 217. Powers with respect to troubled insured system banks.
Sec. 218. Oversight and regulatory actions by the Farm Credit System Insurance
Corporation.
Sec. 219. Farm Credit System Insurance Corporation Board of Directors.
Sec. 220. Interest rate reduction program.
Sec. 221. Liability for making criminal referrals.
TITLE III—NATIONAL NATURAL RESOURCES CONSERVATION
FOUNDATION
Sec. 301. Short title.
Sec. 302. Definitions.
Sec. 303. National Natural Resources Conservation Foundation.
Sec. 304. Composition and operation.
Sec. 305. Officers and employees.
Sec. 306. Corporate powers and obligations of the Foundation.
Sec. 307. Administrative services and support.
Sec. 308. Audits and petition of Attorney General for equitable relief.
Sec. 309. Release from liability.
Sec. 310. Authorization of appropriations.
TITLE IV—IMPLEMENTATION AND EFFECTIVE DATE
Sec. 401. Implementation.
Sec. 302. Effective Date.
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TITLE I—AGRICULTURAL MORT-
GAGE SECONDARY MARKET
SEC. 101. DEFINITION OF REAL ESTATE.
Section 8.0(1)(B)(ii) of the Farm Credit Act of 1971
(12 U.S.C. 2279aa(1)(B)(ii)) is amended by striking ‘‘with
a purchase price’’ and inserting ‘‘, excluding the land to
which the dwelling is affixed, with a value’’.
SEC. 102. DEFINITION OF CERTIFIED FACILITY.
Section 8.0(3) of the Farm Credit Act of 1971 (12
U.S.C. 2279aa(3)) is amended—
(1) in subparagraph (A), by striking ‘‘a second-
ary marketing agricultural loan’’ and inserting ‘‘an
agricultural mortgage marketing’’; and
(2) in subparagraph (B), by striking ‘‘, but
only’’ and all that follows through ‘‘(9)(B)’’.
SEC. 103. DUTIES OF FEDERAL AGRICULTURAL MORTGAGE
CORPORATION.
Section 8.1(b) of the Farm Credit Act of 1971 (12
U.S.C. 2279aa–1(b)) is amended—
(1) in paragraph (2), by striking ‘‘and’’ at the
end;
(2) in paragraph (3), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
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‘‘(4) purchase qualified loans and issue securities
representing interests in, or obligations backed by, the
qualified loans, guaranteed for the timely repayment
of principal and interest.’’.
SEC. 104. POWERS OF THE CORPORATION.
Section 8.3(c) of the Farm Credit Act of 1971 (12
U.S.C. 2279aa–3(c)) is amended—
(1) by redesignating paragraphs (13) and (14)
as paragraphs (14) and (15), respectively; and
(2) by inserting after paragraph (12) the follow-
ing:
‘‘(13) To purchase, hold, sell, or assign a quali-
fied loan, to issue a guaranteed security, representing
an interest in, or an obligation backed by, the quali-
fied loan, and to perform all the functions and re-
sponsibilities of an agricultural mortgage marketing
facility operating as a certified facility under this
title.’’.
SEC. 105. FEDERAL RESERVE BANKS AS DEPOSITARIES AND
FISCAL AGENTS.
Section 8.3 of the Farm Credit Act of 1971 (12 U.S.C.
2279aa–3) is amended—
(1) in subsection (d), by striking ‘‘may act as de-
positories for, or’’ and inserting ‘‘shall act as deposi-
tories for, and’’; and
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(2) in subsection (e), by striking ‘‘Secretary of
the Treasury may authorize the Corporation to use’’
and inserting ‘‘Corporation shall have access to’’.
SEC. 106. CERTIFICATION OF AGRICULTURAL MORTGAGE
MARKETING FACILITIES.
Section 8.5 of the Farm Credit Act of 1971 (12 U.S.C.
2279aa–5) is amended—
(1) in subsection (a)—
(A) in paragraph (1), by inserting ‘‘(other
than the Corporation)’’ after ‘‘agricultural mort-
gage marketing facilities’’; and
(B) in paragraph (2), by inserting ‘‘(other
than the Corporation)’’ after ‘‘agricultural mort-
gage marketing facility’’; and
(2) in subsection (e)(1), by striking ‘‘(other than
the Corporation)’’.
SEC. 107. GUARANTEE OF QUALIFIED LOANS.
Section 8.6 of the Farm Credit Act of 1971 (12 U.S.C.
2279aa–6) is amended—
(1) in subsection (a)(1)—
(A) by striking ‘‘Corporation shall guaran-
tee’’ and inserting the following: ‘‘Corporation—
‘‘(A) shall guarantee’’;
(B) by striking the period at the end and
inserting ‘‘; and’’; and
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(C) by adding at the end the following:
‘‘(B) may issue a security, guaranteed as to
the timely payment of principal and interest,
that represents an interest solely in, or an obli-
gation fully backed by, a pool consisting of
qualified loans that—
‘‘(i) meet the standards established
under section 8.8; and
‘‘(ii) have been purchased and held by
the Corporation.’’;
(2) in subsection (d)—
(A) by striking paragraph (4); and
(B) by redesignating paragraphs (5), (6),
and (7) as paragraphs (4), (5), and (6), respec-
tively; and
(3) in subsection (g)(2), by striking ‘‘section
8.0(9)(B))’’ and inserting ‘‘section 8.0(9))’’.
SEC. 108. MANDATORY RESERVES AND SUBORDINATED
PARTICIPATION INTERESTS ELIMINATED.
(a) GUARANTEE OF QUALIFIED LOANS.—Section 8.6
of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–6) is
amended by striking subsection (b).
(b) RESERVES
AND SUBORDINATED PARTICIPATION
INTERESTS.—Section 8.7 of the Farm Credit Act of 1971
(12 U.S.C. 2279aa–7) is repealed.
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(c) CONFORMING AMENDMENTS.—
(1) Section 8.0(9)(B)(i) of the Farm Credit Act
of 1971 (12 U.S.C. 2279aa(9)(B)(i)) is amended by
striking ‘‘8.7, 8.8,’’ and inserting ‘‘8.8’’.
(2) Section 8.6(a)(2) of the Farm Credit Act of
1971 (12 U.S.C. 2279aa–6(a)(2)) is amended by
striking ‘‘subject to the provisions of subsection (b)’’.
SEC. 109. STANDARDS REQUIRING DIVERSIFIED POOLS.
(a) IN GENERAL.—Section 8.6 of the Farm Credit Act
of 1971 (12 U.S.C. 2279aa–6) (as amended by section 108)
is amended—
(1) by striking subsection (c); and
(2) by redesignating subsections (d) through (g)
as subsections (b) through (e), respectively.
(b) CONFORMING AMENDMENTS.—
(1) Section 8.0(9)(B)(i) of the Farm Credit Act
of 1971 (12 U.S.C. 2279aa(9)(B)(i)) is amended by
striking ‘‘(f)’’ and inserting ‘‘(d)’’.
(2) Section 8.13(a) of the Farm Credit Act of
1971 (12 U.S.C. 2279aa–13(a)) is amended by strik-
ing ‘‘sections 8.6(b) and’’ in each place it appears
and inserting ‘‘section’’.
(3) Section 8.32(b)(1)(C) of the Farm Credit Act
of 1971 (12 U.S.C. 2279bb–1(b)(1)(C)) is amended by
striking ‘‘under section 8.6(b)(2)’’.
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(4) Section 8.6(b) of the Farm Credit Act of
1971 (12 U.S.C. 2279aa–6(b)) (as redesignated by
subsection (a)(2)) is amended—
(A) by striking paragraph (4) (as redesig-
nated by section 107(2)(B)); and
(B) by redesignating paragraphs (5) and
(6) (as redesignated by section 107(2)(B)) as
paragraphs (4) and (5), respectively.
SEC. 110. SMALL FARMS.
Section 8.8(e) of the Farm Credit Act of 1971 (12
U.S.C. 2279aa–8(e)) is amended by adding at the end the
following: ‘‘The Board shall promote and encourage the in-
clusion of qualified loans for small farms and family farm-
ers in the agricultural mortgage secondary market.’’.
SEC. 111. DEFINITION OF AN AFFILIATE.
Section 8.11(e) of the Farm Credit Act of 1971 (21
U.S.C. 2279aa–11(e)) is amended—
(1) by striking ‘‘a certified facility or’’; and
(2) by striking ‘‘paragraphs (3) and (7), respec-
tively, of section 8.0’’ and inserting ‘‘section 8.0(7)’’.
SEC. 112. STATE USURY LAWS SUPERSEDED.
Section 8.12 of the Farm Credit Act of 1971 (12 U.S.C.
2279aa–12) is amended by striking subsection (d) and in-
serting the following:
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‘‘(d) STATE USURY LAWS SUPERSEDED.—A provision
of the Constitution or law of any State shall not apply to
an agricultural loan made by an originator or a certified
facility in accordance with this title for sale to the Corpora-
tion or to a certified facility for inclusion in a pool for
which the Corporation has provided, or has committed to
provide, a guarantee, if the loan, not later than 180 days
after the date the loan was made, is sold to the Corporation
or included in a pool for which the Corporation has pro-
vided a guarantee, if the provision—
‘‘(1) limits the rate or amount of interest, dis-
count points, finance charges, or other charges that
may be charged, taken, received, or reserved by an ag-
ricultural lender or a certified facility; or
‘‘(2) limits or prohibits a prepayment penalty
(either fixed or declining), yield maintenance, or
make-whole payment that may be charged, taken, or
received by an agricultural lender or a certified facil-
ity in connection with the full or partial payment of
the principal amount due on a loan by a borrower in
advance of the scheduled date for the payment under
the terms of the loan, otherwise known as a prepay-
ment of the loan principal.’’.
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SEC. 113. EXTENSION OF CAPITAL TRANSITION PERIOD.
Section 8.32 of the Farm Credit Act of 1971 (12 U.S.C.
2279bb–1) is amended—
(1) in the first sentence of subsection (a), by
striking ‘‘Not later than the expiration of the 2-year
period beginning on December 13, 1991,’’ and insert-
ing ‘‘Not sooner than the expiration of the 3-year pe-
riod beginning on the date of enactment of the Farm
Credit System Reform Act of 1996,’’;
(2) in the first sentence of subsection (b)(2), by
striking ‘‘5-year’’ and inserting ‘‘8-year’’; and
(3) in subsection (d)—
(A) in the first sentence—
(i) by striking ‘‘The regulations estab-
lishing’’ and inserting the following:
‘‘(1) IN
GENERAL.—The regulations establish-
ing’’; and
(ii) by striking ‘‘shall contain’’ and in-
serting the following: ‘‘shall—
‘‘(A) be issued by the Director for public
comment in the form of a notice of proposed
rulemaking, to be first published after the expi-
ration of the period referred to in subsection (a);
and
‘‘(B) contain’’; and
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(B) in the second sentence, by striking ‘‘The
regulations shall’’ and inserting the following:
‘‘(2) SPECIFICITY.—The regulations referred to
in paragraph (1) shall’’.
SEC. 114. MINIMUM CAPITAL LEVEL.
Section 8.33 of the Farm Credit Act of 1971 (12 U.S.C.
2279bb–2) is amended to read as follows:
‘‘SEC. 8.33. MINIMUM CAPITAL LEVEL.
‘‘(a) IN GENERAL.—Except as provided in subsection
(b), for purposes of this subtitle, the minimum capital level
for the Corporation shall be an amount of core capital equal
to the sum of—
‘‘(1) 2.75 percent of the aggregate on-balance
sheet assets of the Corporation, as determined in ac-
cordance with generally accepted accounting prin-
ciples; and
‘‘(2) 0.75 percent of the aggregate off-balance
sheet obligations of the Corporation, which, for the
purposes of this subtitle, shall include—
‘‘(A) the unpaid principal balance of out-
standing securities that are guaranteed by the
Corporation and backed by pools of qualified
loans;
‘‘(B) instruments that are issued or guaran-
teed by the Corporation and are substantially
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equivalent to instruments described in subpara-
graph (A); and
‘‘(C) other off-balance sheet obligations of
the Corporation.
‘‘(b) TRANSITION PERIOD.—
‘‘(1) IN GENERAL.—For purposes of this subtitle,
the minimum capital level for the Corporation—
‘‘(A) prior to January 1, 1997, shall be the
amount of core capital equal to the sum of—
‘‘(i) 0.45 percent of aggregate off-bal-
ance sheet obligations of the Corporation;
‘‘(ii) 0.45 percent of designated on-bal-
ance sheet assets of the Corporation, as de-
termined under paragraph (2); and
‘‘(iii) 2.50 percent of on-balance sheet
assets of the Corporation other than assets
designated under paragraph (2);
‘‘(B) during the 1-year period ending De-
cember 31, 1997, shall be the amount of core cap-
ital equal to the sum of—
‘‘(i) 0.55 percent of aggregate off-bal-
ance sheet obligations of the Corporation;
‘‘(ii) 1.20 percent of designated on-bal-
ance sheet assets of the Corporation, as de-
termined under paragraph (2); and
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‘‘(iii) 2.55 percent of on-balance sheet
assets of the Corporation other than assets
designated under paragraph (2);
‘‘(C) during the 1-year period ending De-
cember 31, 1998, shall be the amount of core cap-
ital equal to—
‘‘(i) if the Corporation’s core capital is
not less than $25,000,000 on January 1,
1998, the sum of—
‘‘(I) 0.65 percent of aggregate off-
balance sheet obligations of the Cor-
poration;
‘‘(II) 1.95 percent of designated
on-balance sheet assets of the Corpora-
tion, as determined under paragraph
(2); and
‘‘(III) 2.65 percent of on-balance
sheet assets of the Corporation other
than assets designated under para-
graph (2); or
‘‘(ii) if the Corporation’s core capital
is less than $25,000,000 on January 1,
1998, the amount determined under sub-
section (a); and
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‘‘(D) on and after January 1, 1999, shall be
the amount determined under subsection (a).
‘‘(2) DESIGNATED
ON-BALANCE
SHEET
AS-
SETS.—For purposes of this subsection, the designated
on-balance sheet assets of the Corporation shall be—
‘‘(A) the aggregate on-balance sheet assets of
the Corporation acquired under section 8.6(e);
and
‘‘(B) the aggregate amount of qualified
loans purchased and held by the Corporation
under section 8.3(c)(13).’’.
SEC. 115. CRITICAL CAPITAL LEVEL.
Section 8.34 of the Farm Credit Act of 1971 (12 U.S.C.
2279bb–3) is amended to read as follows:
‘‘SEC. 8.34. CRITICAL CAPITAL LEVEL.
‘‘For purposes of this subtitle, the critical capital level
for the Corporation shall be an amount of core capital equal
to 50 percent of the total minimum capital amount deter-
mined under section 8.33.’’.
SEC. 116. ENFORCEMENT LEVELS.
Section 8.35(e) of the Farm Credit Act of 1971 (12
U.S.C. 2279bb–4(e)) is amended by striking ‘‘during the 30-
month period beginning on the date of enactment of this
section,’’ and inserting ‘‘during the period beginning on De-
cember 13, 1991, and ending on the effective date of the
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risk based capital regulation issued by the Director under
section 8.32,’’.
SEC. 117. RECAPITALIZATION OF THE CORPORATION.
Title VIII of the Farm Credit Act of 1971 (12 U.S.C.
2279aa et seq.) is amended by adding at the end the follow-
ing:
‘‘SEC. 8.38. RECAPITALIZATION OF THE CORPORATION.
‘‘(a) MANDATORY RECAPITALIZATION.—The Corpora-
tion shall increase the core capital of the Corporation to
an amount equal to or greater than $25,000,000, not later
than the earlier of—
‘‘(1) the date that is 2 years after the date of en-
actment of this section; or
‘‘(2) the date that is 180 days after the end of
the first calendar quarter that the aggregate on-bal-
ance sheet assets of the Corporation, plus the out-
standing principal of the off-balance sheet obligations
of the Corporation, equal or exceed $2,000,000,000.
‘‘(b) RAISING CORE CAPITAL.—In carrying out this
section, the Corporation may issue stock under section 8.4
and otherwise employ any recognized and legitimate means
of raising core capital in the power of the Corporation
under section 8.3.
‘‘(c) LIMITATION ON GROWTH OF TOTAL ASSETS.—
During the 2-year period beginning on the date of enact-
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ment of this section, the aggregate on-balance sheet assets
of the Corporation plus the outstanding principal of the off-
balance sheet obligations of the Corporation may not exceed
$3,000,000,000 if the core capital of the Corporation is less
than $25,000,000.
‘‘(d) ENFORCEMENT.—If the Corporation fails to carry
out subsection (a) by the date required under paragraph
(1) or (2) of subsection (a), the Corporation may not pur-
chase a new qualified loan or issue or guarantee a new
loan-backed security until the core capital of the Corpora-
tion is increased to an amount equal to or greater than
$25,000,000.’’.
SEC. 118. LIQUIDATION OF THE FEDERAL AGRICULTURAL
MORTGAGE CORPORATION.
Title VIII of the Farm Credit Act of 1971 (12 U.S.C.
2279aa et seq.) (as amended by section 117) is amended
by adding at the end the following:
‘‘Subtitle 
C—Receivership,
Conservatorship, and Liquida-
tion of the Federal Agricultural
Mortgage Corporation
‘‘SEC. 8.41. CONSERVATORSHIP; LIQUIDATION; RECEIVER-
SHIP.
‘‘(a) VOLUNTARY
LIQUIDATION.—The Corporation
may voluntarily liquidate only with the consent of, and in
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accordance with a plan of liquidation approved by, the
Farm Credit Administration Board.
‘‘(b) INVOLUNTARY LIQUIDATION.—
‘‘(1) IN GENERAL.—The Farm Credit Adminis-
tration Board may appoint a conservator or receiver
for the Corporation under the circumstances specified
in section 4.12(b).
‘‘(2) APPLICATION.—In applying section 4.12(b)
to the Corporation under paragraph (1)—
‘‘(A) the Corporation shall also be consid-
ered insolvent if the Corporation is unable to
pay its debts as they fall due in the ordinary
course of business;
‘‘(B) a conservator may also be appointed
for the Corporation if the authority of the Cor-
poration to purchase qualified loans or issue or
guarantee loan-backed securities is suspended;
and
‘‘(C) a receiver may also be appointed for
the Corporation if—
‘‘(i)(I) the authority of the Corporation
to purchase qualified loans or issue or guar-
antee loan-backed securities is suspended; or
‘‘(II) the Corporation is classified
under section 8.35 as within level III or IV
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and the alternative actions available under
subtitle B are not satisfactory; and
‘‘(ii) the Farm Credit Administration
determines that the appointment of a con-
servator would not be appropriate.
‘‘(3) NO EFFECT ON SUPERVISORY ACTIONS.—
The grounds for appointment of a conservator for the
Corporation under this subsection shall be in addition
to those in section 8.37.
‘‘(c) APPOINTMENT OF CONSERVATOR OR RECEIVER.—
‘‘(1) QUALIFICATIONS.—Notwithstanding section
4.12(b), if a conservator or receiver is appointed for
the Corporation, the conservator or receiver shall be—
‘‘(A) the Farm Credit Administration or
any other governmental entity or employee, in-
cluding the Farm Credit System Insurance Cor-
poration; or
‘‘(B) any person that—
‘‘(i) has no claim against, or financial
interest in, the Corporation or other basis
for a conflict of interest as the conservator
or receiver; and
‘‘(ii) has the financial and manage-
ment expertise necessary to direct the oper-
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ations and affairs of the Corporation and,
if necessary, to liquidate the Corporation.
‘‘(2) COMPENSATION.—
‘‘(A) IN
GENERAL.—A conservator or re-
ceiver for the Corporation and professional per-
sonnel (other than a Federal employee) employed
to represent or assist the conservator or receiver
may be compensated for activities conducted as,
or for, a conservator or receiver.
‘‘(B) 
LIMIT
ON
COMPENSATION.—Com-
pensation may not be provided in amounts
greater than the compensation paid to employees
of the Federal Government for similar services,
except that the Farm Credit Administration may
provide for compensation at higher rates that are
not in excess of rates prevailing in the private
sector if the Farm Credit Administration deter-
mines that compensation at higher rates is nec-
essary in order to recruit and retain competent
personnel.
‘‘(C) CONTRACTUAL
ARRANGEMENTS.—The
conservator or receiver may contract with any
governmental entity, including the Farm Credit
System Insurance Corporation, to make person-
nel, services, and facilities of the entity available
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to the conservator or receiver on such terms and
compensation arrangements as shall be mutually
agreed, and each entity may provide the same to
the conservator or receiver.
‘‘(3) EXPENSES.—A valid claim for expenses of
the conservatorship or receivership (including com-
pensation under paragraph (2)) and a valid claim
with respect to a loan made under subsection (f)
shall—
‘‘(A) be paid by the conservator or receiver
from funds of the Corporation before any other
valid claim against the Corporation; and
‘‘(B) may be secured by a lien, on such
property of the Corporation as the conservator or
receiver may determine, that shall have priority
over any other lien.
‘‘(4) LIABILITY.—If the conservator or receiver
for the Corporation is not a Federal entity, or an offi-
cer or employee of the Federal Government, the con-
servator or receiver shall not be personally liable for
damages in tort or otherwise for an act or omission
performed pursuant to and in the course of the
conservatorship or receivership, unless the act or
omission constitutes gross negligence or any form of
intentional tortious conduct or criminal conduct.
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‘‘(5) INDEMNIFICATION.—The Farm Credit Ad-
ministration may allow indemnification of the con-
servator 
or 
receiver 
from 
the 
assets 
of 
the
conservatorship or receivership on such terms as the
Farm Credit Administration considers appropriate.
‘‘(d) JUDICIAL REVIEW OF APPOINTMENT.—
‘‘(1) IN GENERAL.—Notwithstanding subsection
(i)(1), not later than 30 days after a conservator or
receiver is appointed under subsection (b), the Cor-
poration may bring an action in the United States
District Court for the District of Columbia for an
order requiring the Farm Credit Administration
Board to remove the conservator or receiver. The court
shall, on the merits, dismiss the action or direct the
Farm Credit Administration Board to remove the
conservator or receiver.
‘‘(2) STAY OF OTHER ACTIONS.—On the com-
mencement of an action under paragraph (1), any
court having jurisdiction of any other action or en-
forcement proceeding authorized under this subtitle to
which the Corporation is a party shall stay the action
or proceeding during the pendency of the action for
removal of the conservator or receiver.
‘‘(e) GENERAL POWERS
OF CONSERVATOR
OR RE-
CEIVER.—The conservator or receiver for the Corporation
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shall have powers comparable to the powers available to a
conservator or receiver appointed pursuant to section
4.12(b).
‘‘(f) BORROWINGS FOR WORKING CAPITAL.—
‘‘(1) IN GENERAL.—If the conservator or receiver
of the Corporation determines that it is likely that
there will be insufficient funds to pay the ongoing ad-
ministrative expenses of the conservatorship or receiv-
ership or that there will be insufficient liquidity to
fund maturing obligations of the conservatorship or
receivership, the conservator or receiver may borrow
funds in such amounts, from such sources, and at
such rates of interest as the conservator or receiver
considers necessary or appropriate to meet the admin-
istrative 
expenses 
or 
liquidity 
needs 
of 
the
conservatorship or receivership.
‘‘(2) WORKING
CAPITAL
FROM
FARM
CREDIT
BANKS.—A Farm Credit bank may loan funds to the
conservator or receiver for a loan authorized under
paragraph (1) or, in the event of receivership, a Farm
Credit bank may purchase assets of the Corporation.
‘‘(g) AGREEMENTS AGAINST INTERESTS
OF CON-
SERVATOR OR RECEIVER.—No agreement that tends to di-
minish or defeat the right, title, or interest of the conserva-
tor or receiver for the Corporation in any asset acquired