than 5 years after the date on which the ag-
gregate of the amounts in the Farm Credit
Insurance Fund exceeds the secure base
amount, and to continue through the 2 im-
mediately subsequent years;
‘‘(ii) interest earned on any amounts
that would have been paid as described in
clause (i) from the date on which the pay-
ments would have been paid as described in
clause (i); and
‘‘(iii) the payment to be made in the
initial year described in subparagraph (A),
based on the amount in each Account after
subtracting the amounts to be paid under
clauses (i) and (ii).’’
(c) TECHNICAL AMENDMENTS.—Section 5.55(d) of the
Farm Credit Act of 1971 (12 U.S.C. 2277a–4(d)) is amend-
ed—
(1) in the matter preceding paragraph (1)—
(A) by striking ‘‘subsections (a) and (c)’’
and inserting ‘‘subsections (a), (c), and (e)’’; and
(B) by striking ‘‘a Farm Credit Bank’’ and
inserting ‘‘an insured System bank’’; and
(2) in paragraphs (1), (2), and (3), by striking
‘‘Farm Credit Bank’’ each place it appears and in-
serting ‘‘insured System bank’’.
SEC. 216. EXAMINATIONS BY THE FARM CREDIT SYSTEM IN-
SURANCE CORPORATION.
Section 5.59(b)(1)(A) of the Farm Credit Act of 1971
(12 U.S.C. 2277a–8(b)(1)(A)) is amended by adding at the
end the following: ‘‘Notwithstanding any other provision of
this Act, on cancellation of the charter of a System institu-
tion, the Corporation shall have authority to examine the
system institution in receivership. An examination shall be
performed at such intervals as the Corporation shall deter-
mine.’’.
SEC. 217. POWERS WITH RESPECT TO TROUBLED INSURED
SYSTEM BANKS.
(a) LEAST-COST RESOLUTION.—Section 5.61(a)(3) of
the Farm Credit Act of 1971 (12 U.S.C. 2277a–10(a)) is
amended—
(1) by redesignating subparagraph (B) as sub-
paragraph (F); and
(2) by striking subparagraph (A) and inserting
the following:
‘‘(A) LEAST-COST RESOLUTION.—Assistance
may not be provided to an insured System bank
under this subsection unless the means of provid-
ing the assistance is the least costly means of
providing the assistance by the Farm Credit In-
surance Fund of all possible alternatives avail-
able to the Corporation, including liquidation of
the bank (including paying the insured obliga-
tions issued on behalf of the bank). Before mak-
ing a least-cost determination under this sub-
paragraph, the Corporation shall accord such
other insured System banks as the Corporation
determines to be appropriate the opportunity to
submit information relating to the determina-
tion.
‘‘(B) DETERMINING
LEAST
COSTLY
AP-
PROACH.—In determining the least costly alter-
native under subparagraph (A), the Corporation
shall—
‘‘(i) evaluate alternatives on a present-
value basis, using a reasonable discount
rate;
‘‘(ii) document the evaluation and the
assumptions on which the evaluation is
based; and
‘‘(iii) retain the documentation for not
less than 5 years.
‘‘(C) TIME OF DETERMINATION.—
‘‘(i) GENERAL RULE.—For purposes of
this subsection, the determination of the
costs of providing any assistance under any
provision of this section with respect to any
insured System bank shall be made as of the
date on which the Corporation makes the
determination to provide the assistance to
the institution under this section.
‘‘(ii) RULE
FOR
LIQUIDATIONS.—For
purposes of this subsection, the determina-
tion of the costs of liquidation of any in-
sured System bank shall be made as of the
earliest of—
‘‘(I) the date on which a conserva-
tor is appointed for the insured System
bank;
‘‘(II) the date on which a receiver
is appointed for the insured System
bank; or
‘‘(III) the date on which the Cor-
poration makes any determination to
provide any assistance under this sec-
tion with respect to the insured System
bank.
‘‘(D) RULE
FOR
STAND-ALONE
ASSIST-
ANCE.—Before providing any assistance under
paragraph (1), the Corporation shall evaluate
the adequacy of managerial resources of the in-
sured System bank. The continued service of any
director or senior ranking officer who serves in
a policymaking role for the assisted insured Sys-
tem bank, as determined by the Corporation,
shall be subject to approval by the Corporation
as a condition of assistance.
‘‘(E) DISCRETIONARY
DETERMINATIONS.—
Any determination that the Corporation makes
under this paragraph shall be in the sole discre-
tion of the Corporation.’’.
(b) CONFORMING AMENDMENTS.—Section 5.61(a) of
the Farm Credit Act of 1971 (12 U.S.C. 2277a–10(a)) is
amended—
(1) in paragraph (1) by striking ‘‘IN
GEN-
ERAL.—’’ and inserting ‘‘STAND-ALONE
ASSIST-
ANCE.—’’; and
(2) in paragraph (2)—
(A) by striking ‘‘ENUMERATED POWERS.—’’
and inserting ‘‘FACILITATION OF MERGERS OR
CONSOLIDATION.—’’; and