I
103D CONGRESS
2D SESSION
H. R. 4379
To amend the Farm Credit Act of 1971 to enhance the ability of the
banks for cooperatives to finance agricultural exports, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 10, 1994
Mr. DE LA GARZA (for himself, Mr. ROBERTS, Mr. JOHNSON of South Dakota,
Mr. COMBEST, Mr. PENNY, and Mr. ALLARD) introduced the following
bill; which was referred to the Committee on Agriculture
A BILL
To amend the Farm Credit Act of 1971 to enhance the
ability of the banks for cooperatives to finance agricul-
tural exports, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Farm Credit System
Agricultural Export and Risk Management Act’’.
SEC. 2. REFERENCES.
Except as otherwise specifically provided, whenever in
this Act a section is amended, repealed, or referenced,
such amendment, repeal, or reference shall be considered
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to be made to that section of the Farm Credit Act of 1971
(12 U.S.C. 2001 et seq.).
SEC. 3. PARTICIPATION DEFINED.
Section 3.1(11)(B) (12 U.S.C. 2122(11)(B)) is
amended by adding at the end the following new clause:
‘‘(iv) As used in this subparagraph, the term
‘participate’ or ‘participation’ means multi-lender
transactions including, but not limited to, syndica-
tions, 
assignments, 
loan 
participations,
subparticipations, or other forms of the purchase,
sale, or transfer of interests in loans, other exten-
sions of credit, or other technical and financial as-
sistance.’’.
SEC. 4. AGRICULTURAL EXPORT FINANCING.
(a) Section 3.7(b)(1) (12 U.S.C. 2128(b)(1)) is
amended by—
(1) striking ‘‘assistance to (A)’’ and inserting
‘‘assistance to’’;
(2) striking ‘‘the export or’’ and inserting
‘‘the’’; and
(3) striking ‘‘, and (B)’’ and all that follows
through ‘‘subparagraph (A)’’.
(b) Section 3.7(b) (12 U.S.C. 2128(b)) is further
amended by striking paragraph (2) and inserting the fol-
lowing new paragraph:
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‘‘(2)(A) A bank for cooperatives is authorized to
make or participate in loans and commitments to, and to
extend other technical and financial assistance to—
‘‘(i) any domestic or foreign party for the ex-
port, including (where applicable) the cost of freight,
of agricultural commodities or products, farm sup-
plies, or aquatic products from the United States
under policies and procedures established by the
bank for cooperatives to ensure that such commod-
ities, products, or supplies are originally sourced,
where reasonably available, from one or more eligible
cooperative associations on a priority basis; and
‘‘(ii) except as provided in subparagraph (B),
any domestic or foreign party in which an eligible
cooperative association (as defined in section 3.8)
has an ownership interest, for the purpose of facili-
tating the association’s domestic or foreign business
operations: Provided, That if the ownership interest
by an eligible cooperative association, or associa-
tions, is less than 50 percent, then such financing
shall be limited to the percentage held in the party
by such association or associations.
‘‘(B) A bank for cooperatives shall not use the au-
thority provided in paragraph (2)(A)(ii) to provide finan-
cial assistance to a party for the purpose of financing the
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relocation of plants or facilities from the United States
to another country.’’.
SEC. 5. CONFORMING AMENDMENT.
Section 3.8(b)(1) (12 U.S.C. 2129(b)(1)) is amended
by—
(1) striking subparagraph (B); and
(2) redesignating subparagraphs (C), (D), and
(E) as subparagraphs (B), (C), and (D), respec-
tively.
SEC. 6. LOAN PARTICIPATION AUTHORITY FOR FARM
CREDIT BANKS AND DIRECT LENDER ASSO-
CIATIONS.
Title IV (12 U.S.C. 2151 et seq.) is amended by in-
serting after section 4.18 (12 U.S.C. 2206) the following
new section:
‘‘SEC. 4.18A. AUTHORITY OF FARM CREDIT BANKS AND DI-
RECT LENDER ASSOCIATIONS TO PARTICI-
PATE IN LOANS TO SIMILAR ENTITIES FOR
RISK MANAGEMENT PURPOSES.
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of this Act, any Farm Credit Bank or direct lender
association chartered under this Act is authorized to par-
ticipate in any loan of a type otherwise authorized under
titles I and II made to a similar entity by any person in
the business of extending credit; except that a Farm Cred-