Agricultural Credit Technical Corrections Act of 1988
PL 100-399 (H.R.3980), enacted 08/17/1988

PUBLIC LAW 100-399—AUG. 17, 1988 
102 STAT. 989 
Public Law 100-399 
100th Congress 
An Act 
To make technical corrections to the agricultural credit laws. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Agricultural Credit Technical 
Corrections Act of 1988". 
SEC. 
2
. 
REFERENCES. 
(a) FARM CREDIT ACT OF 1971.—Except as otherwise specifically 
provided, whenever in this Act an amendment or repeal is expressed 
in terms of an amendment to, or repeal of, a section or other 
provision, the reference shall be considered to be made to a section 
or other provision of the Farm Credit Act of 1971 (12 U.S.C. 2001 et 
seq.). 
(b) THE 1987 ACT.—As used in this Act, the term "the 1987 Act" 
means the Agricultural Credit Act of 1987. 
TITLE I—AMENDMENTS RELATED TO 
TITLE I OF THE 1987 ACT 
Aug. 17, 1988 
[H.R. 3980] 
Agricultural 
Credit 
Technical 
Corrections 
Act of 1988. 
Banks and 
banking. 
Rural areas. 
Securities. 
12 u s e 2001 
note. 
SEC. 101. AMENDMENTS RELATED TO SECTION 101 OF THE 1987 ACT. 
(a) Section 4.9A, as in effect immediately before the enactment of 12 USG 216I. 
the 1987 Act, is hereby repealed. 
(b) Section 4.9A(a), as added by section 101 of the 1987 Act, is 12 use 2162. 
amended by striking out the second sentence. 
(c) Section 4.9A(c), as added by section 101 of the 1987 Act, is 
amended to read as follows: 
"(c) INABILITY TO RETIRE STOCK AT PAR VALUE.—If an institution is 
unable to retire eligible borrower stock at par value due to the 
liquidation of the institution, the receiver of the institution shall 
retire such stock at par value as would have been retired in the 
ordinary course of business of the institution, and— 
"(1) during the 5-year period beginning on the date of the 
enactment of the Agricultural Credit Act of 1987, the Assistance 
Board shall direct the Financial Assistance Corporation to pro-
vide the receiver with sufficient funds to enable the receiver to 
carry out this subsection; and 
"(2) after such 5-year period, the Farm Credit System Insur-
ance Corporation shall provide the receiver with sufficient 
funds from the Farm Credit Insurance Fund to enable the 
receiver to carry out this subsection.". 
(d) Section 4.9A(dX2XB), as added by section 101 of the 1987 Act, is 
amended— 
(1) by striking out "required" and all that follows through 
"made ' and inserting in lieu thereof "issued or allocated"; and 
102 STAT. 990 
PUBLIC LAW 100-399—AUG. 17, 1988 
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(2) by striking out "4.9B" and inserting in lieu thereof "4.3A". 
SEC. 102. AMENDMENTS RELATED TO SECTION 102 OF THE 1987 ACT. 
(a) Section 4.14A(a) is amended by striking out "(other than in 
sections 4.17 and 4.18)". 
(b) Section 4.14A(aX6XB) is amended— 
(1) by striking out "2.3(aX2)" and inserting in lieu thereof 
"1.7(bXlXB)"; and 
(2) by striking out "2.3(a)" and inserting in lieu thereof 
"1.7(bXl)". 
(c) Section 4.14A(eXl) is amended by striking out "a qualified" the 
second place it appears and inserting in lieu thereof "such 
qualified". 
(d) Section 4.14A(gXl) is amended by striking out "farm credit 
district" and inserting^ lieu thereof "bank". 
(e) Section 4.14A(gX3) is amended by striking out "district board" 
and inserting "bank board". 
(f) Section 4.14A(1) is amended by striking out "Federal intermedi-
ate credit bank" and inserting in lieu thereof "Farm Credit Bank". 
(g) Section 4.14B(a) is amended— 
(1) by amending the heading to read as follows: 
"(a) FARM CREDIT BANK.—"; 
(2) by striking out "a Federal land bank" and inserting in lieu 
thereof "a Farm Credit Bank"; and 
(3) by striking out "the Federal land bank shall" and insert-
ing in lieu thereof ", to the extent provided for in the bylaws of 
the bank relating to its capitalization, the bank shall". 
(h) Section 4.14(XbXl) is amended by striking out "district board of 
such district" and inserting in lieu thereof "Farm Credit Bank 
board". 
SEC. 103. AMENDMENTS RELATED TO SECTION 106 OF THE 1987 ACT. 
(a) Section 4.14(bXl) is amended by striking out "by a" and 
inserting in lieu thereof "before the". 
(b) Section 4.14(dXl) is amended by insertmg "or (2)" after "(bXD". 
SEC. 104. AMENDMENTS RELATED TO SECTION 108 OF THE 1987 ACT. 
(a) Section 4.36(bX2) is amended by striking out "15" and inserting 
in lieu thereof "30". 
(b) Section 4.36(bX3) is amended by striking out "30" and inserting 
in lieu thereof "15". 
(c) Section 4.36(g) is amended by striking out "former borrower" 
and inserting in lieu thereof "previous owner". 
TITLE II—AMENDMENTS RELATED TO 
TITLE II OF THE 1987 ACT 
SEC. 201. AMENDMENTS RELATED TO SECTION 201 OF THE 1987 ACT. 
12 use 2278a-3, 
(a) Sections 6.3(aX12) and 6.24(aX12) are each amended by striking 
2278b-4. 
out "(as defined in section 3(b) of the Federal Deposit Insurance Act 
(12 U.S.C. 1813(b))" and inserting in lieu thereof "(within the mean-
ing of section 3 of the Federal Deposit Insurance Act (12 U.S.C. 
1813))". 
(b) Sections 6.3(b) and 6.24(b) are each amended by striking out 
"original" and inserting in lieu thereof "exclusive". 
PUBLIC LAW 100-399—AUG. 17, 1988 
102 STAT. 991 
(c) Section 6.4 is amended by redesignating the second subsection 
(c) and subsection (d), as subsections (d) and (e), respectively. 
(d) Section 6.5(d) is amended by striking out "No" and inserting in 
lieu thereof "Except as provided in section 410(c) of the Agricultural 
Credit Act of 1987, no". 
(e) Section 6.5 is amended by striking out "the appropriate provi-
sion of " each place it appears. 
(f) Section 6.6(aX8)(B) is amended by striking out "under sections 
5.5and5.17(aX15)". 
(g) Section 6.6(aX9) is amended by striking out "may". 
(h) Section 6.6(bXl) is amended by striking out "(aX8)" and insert-
mg in lieu thereof "(aX9)". 
(i) Section 6.6(bX2) is amended by striking out "the appropriate 
provision of". 
(j) Section 6.7(d) is amended— 
(1) by inserting a comma after "material"; and 
(2) by striking out "under terms" and all that follows through 
"acceptable" and inserting in lieu thereof "under such terms 
and conditions, acceptable . 
(k) The heading of section 6.9(a) is amended by inserting "ASSETS 
AND" before "LIABILITIES". 
(1) Section 6.9(eX5) is amended— 
(1) by inserting "activation of" after the first comma; and 
(2) by stri^ng out the close quotation mark and the period 
that follows. 
(m) Section 6.12 is amended by inserting "to the Assistance 
Board" after "provided". 
(n) Section 6.13(d) is amended by inserting ", for return to the 
revolving fund established under section 4.0," before "the full". 
(o) Section 6.22(aXl) is amended by striking out "Act" and insert-
ing in lieu thereof "subtitle". 
(p) Subsections (cX2XD) and (dXlXD) of section 6.26 are each 
amended— 
(1) by inserting "and Federal land banks" after "credit 
banks"; and 
(2) by striking out "production credit". 
(q) Subsections (cX2XD) and (dXlXD) of section 6.26 are each 
amended by striking out "Federal intermediate credit banks and 
Federal land banks" and inserting in lieu thereof "Farm Credit 
Banks". 
(r) Section 6.26(cX5) is amended— 
(1) in each of subparagraphs (B) and (CXi), by striking out 
"interest pajrments" and inserting in lieu thereof "payments 
under this paragraph"; and 
(2) in subparagraph (B), by striking out "issued under subsec-
tion (dXlX(^)" and inserting in lieu thereof "referred to in 
subsection (dXlXE)". 
(s) The heading of section 6.26(d) is amended by inserting 
"; DEFAULTS" after "PRINCIPAL". 
(t) Section 6.26(dXlXC) is amended— 
(1) by striking out "referred to in" and all that follows 
through "1987," and inserting in lieu thereof "issued to provide 
assistance under section 41(Xc) of the Agricultural Credit Act of 
1987 and section 4.9A(c) of this Act, or issued to provide funds to 
cover the expenses of the Assistance Board under section 6.7(a) 
of this Act,"; 
12 use 2278a-4. 
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12 u s e 2278a-6. 
12 use 2278a-7. 
12 use 2278a-9. 
12 use 
2278a-12. 
12 use 
2278a-13. 
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102 STAT. 992 
PUBLIC LAW 100-399—AUG. 17, 1988 
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eontracts. 
(2) by striking out "such principal" and inserting in lieu 
thereof "such obligation"; 
(3) in clause (i), by striking out "bank" and inserting in 
lieu thereof "institution"; and 
(4) in clause (ii), by striking out "banks" and inserting in lieu 
thereof "institutions". 
(u) Section 6.26(dXlXE) is amended by striking out "subparagraph 
(B)" and inserting in lieu thereof "subparagraphs (B) and (C)". 
(v) Clauses (i) and (iii) of section 6.26(dX3XA) are each amended by 
striking out "this subsection" and inserting in lieu thereof "subsec-
tion (cf. 
(w) The third sentence of section 6.26(dX3XBXiii) is amended by 
inserting "is prohibited from redeeming or" after 
"If such 
institution". 
(x) Section 6.26(dX4XBXiii) is amended by striking out "5.60" and 
inserting in lieu thereof "5.60(cX2XB)". 
(y) Section 6.27(aXl) is amended by striking out "(a) or Ot>)". 
(z) Section 6.27(aX2XB) is amended— 
(1) by striking out "Reserve Account Board" and inserting in 
lieu thereof "Farm Credit System Insurance Corporation"; and 
(2) by striking out "Board purchases" and inserting in lieu 
thereof "Insurance Corporation purchases". 
(aa) Section 6.270k)) is amended by striking out "subsections (a) and 
Ok))" and inserting in lieu thereof "subsection (a)". 
Obb) Section 6.280t)X2) is amended— 
(1) by striking out "this paragraph" and inserting in lieu 
thereof "paragraph (1) equal ; and 
(2) in subparagraph (A), by striking out "subsection (cXlXD)" 
and inserting in lieu thereof "section 6.26(cX2XD)". 
SEC. 202. AMENDMENT RELATED TO SECTION 202 OF THE 1987 ACT. 
Section 4.0 is amended to read as follows: 
"SEC. 4.0. REVOLVING FUND. 
"The revolving fund established by this section (in effect imme-
diately before the date of the enactment of the Agricultural Credit 
Act of 1987) shall be available to the Farm Credit Administration 
and the Assistance Board during the periods, and for the purposes, 
provided for in sections 6.13 and 6.7, respectively.". 
SEC. 203. AMENDMENTS RELATED TO SECTION 204 OF THE 1987 ACT. 
(a) Section 4.9 is amended by adding at the end the following: 
"(0 SUCCESSION.— 
"(1) ASSETS AND UABIUTIES.—The Corporation shall, by oper-
ation of law and without any further action by the Farm Credit 
Administration, the predecessor Federal Farm Credit Banks 
Funding Corporation (hereinafter referred to in this subsection 
as 'the predecessor corporation') chartered under this Act, or 
any court, succeed to the assets of and assume all debts, obliga-
tions, contracts, and other liabilities of the predecessor corpora-
tion, matured or unmatured, accrued, absolute, contingent or 
otherwise, and whether or not reflected or reserved against on 
balance sheets, books of account, or records of the predecessor 
corporation. 
"(2) CONTRACTS.—The existing contractual obligations, secu-
rity instruments, and title instruments of the predecessor cor-
poration shall, by operation of law and without any further 
PUBLIC LAW 100-399—AUG. 17, 1988 
102 STAT. 993 
action by the Farm Credit Administration, the predecessor 
corporation, or any court, become and be converted into obliga-
tions, entitlements, and instruments of the Corporation. 
"(8) STOCK.—The stock of the predecessor corporation issued 
before the date of the enactment of this section shall, by oper-
ation of law and without any further action by the Farm Credit 
Administration, the predecessor corporation, or any court, 
become and be converted into stock of the Corporation estab-
lished by this section. 
"(4) TAXATION.—The succession to assets, assumption of liabil- State and local 
ities, conversion of obligations, instruments, and stock, and governments. 
effectuation of any other transaction by the Corporation to 
carry out this subsection shall not be treated as a taxable event 
under the laws of any State or political subdivision thereof.". 
(b) Section 4.9(bX3) is amended by inserting "predecessor Federal 12 use 216O. 
Farm Credit Banks" before "Funding Corporation". 
(c) Subparagraphs (B) and (C) of section 4.9(dX2) are each amended 
by striking out "Federal Farm Credit Banks Funding". 
(d) Section 4.9(e) is amended to read as follows: 
"(e) TRANsmoNAL AUTHORITY.—Until a majority of the voting 
members of the board of directors of the Corporation is elected, 
which shall occur as soon as is practicable after the enactment of 
this section— 
"(1) the Hnance committee established under section 4.5 in 
effect before the date of the enactment of this section, and the 
fiscal agency established under section 4.9 in effect before such 
date of enactment, shall continue to operate as if this section 
had not been enacted; and 
"(2) the board of directors of the predecessor Federal Farm 
Credit Banks Funding Corporation shall be the board of direc-
tors of the Financial Assistance Corporation.". 
(e) Section 4.2(e) is amended— 
12 use 2153. 
(1) by striking out "their" and inserting in lieu thereof "the"; 
and 
(2) by striking out "fiscal agent" each place it appears and 
inserting in lieu thereof "Federal Farm Credit Banks Funding 
Corporation". 
SEC. 204. A
M
E
N
D
M
E
N
T RELATED TO SECTION 205 OF THE 1987 ACT. 
Section 5.19(bX2) is amended by striking out "this section" and 12 use 2254. 
inserting in lieu thereof "the third sentence of paragraph (1)". 
SEC. 205. AMENDMENTS RELATED TO SECTION 207 OF THE 1987 ACT. 
Section 5.17(a) is amended by redesignating paragraphs (9), (10), 12 use 2252. 
(11), (12), (13), and (14), as paragraphs (8), (9), (10), (11), (12), and (13), 
respectively. 
TITLE III—AMENDMENTS RELATED TO 
TITLE III OF THE 1987 ACT 
SEC. 301. A
M
E
N
D
M
E
N
T
S RELATED TO SECTION 301 OF THE 1987 ACT. 
(a) Section 301(a) of the 1987 Act is amended— 
(1) in paragraph (IXB), by striking out "be" and inserting in 
lieu thereof "apply to an institution"; 
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note. 
102 STAT. 994 
PUBLIC LAW 100-399—AUG. 17, 1988 
(2) in paragraph (2), by striking out "5.17(bX2)" and all that 
follows through "proposed" and inserting in lieu thereof 
"5.17(cX2) of the Farm Credit Act of 1971 (12 U.S.C. 2251(cX2)) 
with respect to the issuance of the"; and 
(3) in paragraph (3), by striking out "(IXC)" and inserting in 
lieu thereof "(IXD)". 
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(b) Section 4.3A(aXlXB) is amended by striking out "4.9B" and 
inserting in lieu thereof "4.9A". 
(c) Section 4.3A(cXl) is amended— 
(1) in subparagraph (DXi), by striking out the third comma; 
and 
(2) in subparagraph (G), by inserting "voting" before "stock 
issued". 
(d) Section 4.3A(cXlXH) is amended by inserting ", except as 
otherwise provided in this section" after "the borrower". 
(e) Section 4.3A(cXlXI) is amended by striking out "standards 
issued under". 
(0 Section 4.3A(dXl) is amended— 
(1) by striking out "and in section 4.9A"; and 
(2) by striking out "or allocated equities". 
SEC. 302. AMENDMENTS RELATED TO SECTION 302 OF THE 1987 ACT. 
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(a) Subparagraphs (A) and (B) of section 5.51(3) are amended to 
read as follows: 
"(A) on or before January 5, 1989, on behalf of any 
System bank; and 
"(B) after such date, which, when issued, is issued on 
behalf of any insured System bank." 
(b) Section 5.51(5) is amended by striking out "to liquidate" and 
inserting in lieu thereof "for". 
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(c) Section 5.55(d) is amended by striking out "loans made by a 
Federal intermediate credit bank" and inserting in lieu thereof 
"intermediate term loans made by a Farm Credit Bank". 
(d) Section 5.55(dX2) is amended by striking out "2.3(aX2)" and 
inserting in lieu thereof "1.7(bXlXB)". 
(e) Paragraphs (2) and (3) of section 5.55(d) are each amended by 
striking out "Federal intermediate credit bank" and inserting in 
lieu thereof "Farm Credit Bank". 
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(f) Section 5.56(a) is amended by striking out "of such" and 
inserting in lieu thereof "of the". 
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(g) Section 5.57(bXl) is amended— 
(1) by striking out "made any report of condition required 
under section 5.55 or"; and 
(2) by striking out "make any such report or". 
(h) Section 5.57(bX2) is amended by striking out "made or". 
12 use 2277a-7. 
(i) Section 5.58(5XA) is amended by striking out "to" each place it 
appears. 
12 use 2277a-9. 
(j) Section 5.60(bXl) is amended by striking out "(in efTect imme-
diately before the date of the enactment of this part)". 
(k) Section 5.60(bX2) is amended by striking out "Banning 5 
years after the date of the enactment of this part, the" and inserting 
in lieu thereof "The". 
(1) Section 5.6(XcX2XB) is amended to read as follows: 
"(B) ensure the retirement of eligible borrower stock at 
par value under section 4.9A.". 
PUBLIC LAW 100-399—AUG. 17, 1988 
102 STAT. 995 
SEC. 303. A
M
E
N
D
M
E
N
T RELATED TO SECTION 303 OF THE 1987 ACT. 
Section 4.4 is amended by redesignating subsection (e) as subsec- 12 use 2155. 
tion (d). 
TITLE IV—AMENDMENTS RELATED TO 
TITLE IV OF THE 1987 ACT 
SEC. 401. AMENDMENTS RELATED TO SECTION 401 OF THE 1987 ACT. 
(a) Section 1.3(a) is amended by inserting ", as provided in section 
12 USC 2011. 
410 of the Agricultural Credit Act of 1987/^before "shall". 
(h) Section 1.3(b) is amended to read as follows: 
"(b) CHARTERS.—The Farm Credit Administration shall, consistent 
with this Act, issue charters for, and approve amendments to char-
ters of, the Farm Credit Banks.". 
(c) Section 1.4 is amended by striking out "from its voting 
12 USC 2012. 
stockholders". 
(d) Section 1.5 is amended— 
12 USC 2013. 
(1) by amending paragraph (9) to read as follows: 
"(9) prescribe, by its board of directors, its bylaws that shall 
be consistent with law, and that shall provide for— 
"(A) the classes of its stock and the manner in which such 
stock shall be issued, transferred, and retired; and 
"(B) the manner in which it is to— 
"(i) select officers, employees, and agents; 
"(ii) acquire, hold, and transfer property; 
"(iii) make loans and discounts; 
"(iv) conduct general business; and 
"(v) exercise and enjoy the privileges granted to it by 
law;"; 
(2) in paragraph (11), by striking out "or securities of" and 
inserting in lieu thereof "of securities or"; 
(3) in subparagraphs (B) and (C) of paragraph (12), by striking 
out "participate with"; 
(4) in paragraph (14), by striking out "as defined in section 3 
of the Federal Deposit Insurance Act" and inserting in lieu 
thereof "(within the meaning of section 3 of the Feder^ Deposit 
Insurance Act (12 U.S.C. 1813))"; 
(5) in paragraph (18), by striking out "Federal land bank"; 
(6) in paragraph (22), by striking out "as authorized by the 
Farm Credit Administration; and" and inserting in lieu thereof 
"in accordance with generally accepted accounting principles, 
except 
as 
may 
be 
authorized 
by 
the 
Farm 
Credit 
Administration;'; 
(7) in paragraph (23)— 
(A) by striking out "and approved by the Farm Credit 
Administration Board"; and 
(B) by striking out the period at the end and inserting in 
lieu thereof "; and"; and 
(8) by adding at the end the following: 
"(24) operate as an originator and become certified as a 
certified facility under title VIII.". 
(e) Section 1.7(a) is amended to read as follows: 
12 USC 2015. 
"(a) REAL ESTATE LOANS AND RELATED ASSISTANCE.— 
"(1) REAL ESTATE LOANS.—The Farm Credit Banks may make 
or participate with other lenders in long-term real estate mort-
102 STAT. 996 
PUBLIC LAW 100-399—AUG. 17, 1988 
gage loans in rural areas, as defined by the Farm Credit 
Administration, or to producers or harvesters of aquatic prod-
ucts, and make continuing commitments to make such loans 
under specified circumstances, for a term of not less than 5 nor 
more than 40 years. 
"(2) FINANCIAL ASSISTANCE.—The Farm Credit Banks may 
provide and extend financial assistance to, and discount for, or 
purchase from, a Federal land bank association any note, draft, 
or other obligation with the endorsement or guarantee of the 
association, the proceeds of which have been advanced to per-
sons eligible and for purposes of financing by the association, as 
authorized under section 7.6(a).". 
12 use 2015. 
(f) Section 1.7flt)) is amended— 
(1) in paragraph (2), by striking out the second sentence; 
(2) in paragraph (3)— 
(A) in the heading, by striking out "ASSISTANCE" and 
inserting in lieu thereof "SERVICES"; and 
(B) in subparagraph (B), by striking out "herein con-
tained" and inserting in lieu thereof "described in subpara-
graph (A)"; and 
(3) in paragraph (4XA), by striking out "section" and inserting 
in lieu thereof "subsection". 
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(g) Section 1.8(a) is amended by striking out "interest at a rate or 
rates, and" and inserting in lieu thereof "such rate or rates of 
interest or discount, and be". 
12 use 2018. 
(h) Section 1.10(a) is amended— 
(1) in paragraph (2), by striking out "approved by" and insert-
ing in lieu thereof "prescribed by regulations of"; and 
(2) in paragraph (3)— 
(A) by striking out "appraisal" the second place it ap-
pears; and 
(B) by striking out "and approved by" and inserting in 
lieu thereof "in accordance with regulations of". 
(i) Section 1.10(b) is amended by striking out "harvester" and 
inserting in lieu thereof "harvesters". 
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(j) Section l.ll(cX2) is amended— 
(1) by inserting "equipment or" before "facilities"; and 
(2) by inserting "or title II" after "title". 
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(k) Section 1.12 is amended— 
(1) by inserting "(a) IN GENERAL.—" before "The Farm Credit 
Banks"; 
(2) by striking out "each district" and inserting in lieu thereof 
"the"; and 
(3) by adding at the end the following new subsection: 
"Ot)) AUTHORITY TO PASS ALONG (DOST OF INSURANCE PREMIUMS.— 
Each Farm Credit Bank may assess each production credit associa-
tion and other financing institution described in section 1.7(bXlXB) 
in the district in which the bank is located to cover the costs of 
making premium pajonents under part E of title V. The assessment 
on any such association or other financing institution for any csd-
endar year shall be computed on the same basis as is used to 
compute the premium pajonent and shall not exceed the sum of— 
"(1) the annual average principal outstanding for such year 
on loans made by the association, or on loans made by the other 
financing institution and discounted with the Farm Credit 
B£uik, that are in accrual status, multiplied by 0.0015; and 
PUBLIC LAW 100-399—AUG. 17, 1988 
102 STAT. 997 
"(2) the annual average principal outstanding for such year 
on loans made by the association, or on loans made by the other 
financing institution and discounted with the Farm Credit 
Bank, that are in nonaccrual status, multiplied by 0.0025.". 
(1) Section 1.15 is amended— 
12 USC 2023. 
(1) by inserting a comma after "therefrom" the first place it 
appears; and 
(2) by striking out "742(a)" and inserting in lieu thereof 
"3124". 
(m) Section 2.00)) is amended— 
12 USC 2071. 
(1) in paragraph (1), by striking out "title" and inserting in 
lieu thereof "subtitle"; 
(2) in paragraph (3XB), by striking out "part" and inserting in 
lieu thereof "subtitle"; 
(3) in subparagraphs (B) and (C) of paragraph (3), by striking 
out "the" the first place it appears; and 
(4) in paragraph (8)— 
(A) by striking out "or by approval of bylaws of the 
association"; and 
(B) by amending subparagraph (D) to read as follows: 
"(D) approve amendments to the charter 
of 
the 
association.", 
(n) Section 2.1 is amended by striking out the sixth comma. 12 use 2072. 
(o) Section 2.2 is amended— 
12 USC 2073. 
(1) by amending paragraph (16) to read as follows: 
"(16) prescribe, by its board of directors, its bylaws that shall 
be consistent with law, and that shall provide for— 
"(A) the classes of its stock and the manner in which such 
stock shall be issued, transferred, and retired; and 
"(B) the manner in which it is to— 
"(i) select officers and employees; 
"(ii) acquire, hold, and transfer property; 
"(iii) conduct general business; and 
"(iv) exercise and enjoy the privileges granted to it by 
law;"; 
(2) in paragraph (17)— 
(A) by striking out "elect by the board of directors of the 
association" and insert in lieu thereof "provide by its board 
of directors for"; and 
(B) by striking out "be elected or designated" and insert-
ing in lieu thereof "serve as"; 
(3) in paragraph (19), by striking out "and"; 
(4) in paragraph (20), by striking out the period and inserting 
in lieu thereof "; and"; and 
(5) by adding at the end the following: 
"(21) operate as an originator and become certified as a 
certified facility under title VIIL". 
(p) Section 2.40t)Xl) is amended— 
12 USC 2075. 
(1) by striking out "title" and inserting in lieu thereof "sub-
title"; and 
(2) by inserting "or" before "planned". 
(q) Section 2.4 is amended by adding at the end the following: 
"(d) SPECIAL DISTRICT RULE.— 
"(1) PROVISION OF CREDIT AND TECHNICAL ASSISTANCE OUTSIDE 
SERVICE TERRITORY.—Notwithstanding any territorial limitation 
in the charter of a production credit association located in a 
district in which there are only two such associations, the Farm 
102 STAT. 998 
PUBLIC LAW 100-399—AUG. 17, 1988 
Credit Administration Board, on request of such association, 
may permit such association to provide credit and technical 
assistance to any borrower who is denied credit by the other 
production credit association in the district if the Board deter-
mines that such other production credit association in the 
district is unduly restrictive in the application of credit 
standards. 
"(2) TIMING OP DETERMINATION.—If the Farm Credit Adminis-
tration Board approves the extension of credit and technical 
assistance under paragraph (1), the association shall approve or 
deny the application for credit within 90 days after receipt of 
the application from the borrower.". 
12 use 2077. 
(r) Section 2.6 is amended— 
(1) by inserting a comma after "interest"; and 
Taxes. 
(2) by inserting ", except that interest on such obligations 
shall be subject to Federal income taxation in the hands of the 
holder" before the period. 
12 use 2091. 
(s) Section 2.10(b) is amended— 
(1) in paragraph (1), by inserting "under section 1.7(a)" before 
the first comma; and 
(2) by amending paragraph (2)(DXi) to read as follows: 
"(i) the individual's eligilsility and request for a Farm 
Credit Bank loan;". 
(t) Section 2.10(c) is amended to read as follows: 
"(c) FCA 
AUTHORITY ON ORGANIZATION.—The Farm Credit 
Administration shall have power, in the terms of the charter, 
under rules and regulations prescribed by the Farm Credit 
Administration— 
"(1) to provide for the organization of the association; 
"(2) to provide for the initial amount of stock of the 
association; 
"(3) to provide for the territory within which the association 
may carry on its operations; and 
"(4) to approve amendments to the charter of such 
association.". 
12 use 2093. 
(u) Section 2.12 is amended— 
(1) in paragraph (7)— 
(A) by striking out "elect by its board of directors" and 
insert in lieu thereof "provide by its board of directors for"; 
and 
(B) by striking out "be elected or designated" and insert-
ing in lieu thereof "serve as"; 
(2) by amending paragraph (8) to read as follows: 
"(8) prescribe, by its board of directors, its bylaws that shall 
be consistent with law, and that shall provide for— 
"(A) the classes of its stock and the manner in which such 
stock shall be issued, transferred, and retired; and 
"(B) the manner in which it is to— 
"(i) select officers and employees; 
Real property. 
"(ii) acquire, hold, and transfer property; 
"(iii) conduct general business; and 
"(iv) exercise and enjoy the privileges granted to it by 
law;"; 
(3) in paragraph (12), by striking out "or delegated to" and 
inserting in lieu thereof "by"; 
(4) in paragraph (20), by striking out "and"; 
PUBLIC LAW 100-399—AUG. 17, 1988 
102 STAT. 999 
(5) in paragraph (21), by striking out the period and inserting 
in lieu thereof "; and"; and 
(6) by adding at the end the following: 
"(22) operate as an originator and become certified as a 
certified facility under title VIIL". 
(v) Section 2.14 is hereby repealed, and the Farm Credit Act of 12 USC 2095 
1971 shall be applied and administered as if such section had not and note. 
been enacted. 
(w) Title n is amended by redesignating sections 2.15, 2.16, and 12 USC 
2.17, as sections 2.14, 2.15, and 2.16, respectively. 
2096-2098. 
(x) Section 2.16, as so redesignated, is amended— 
12 USC 2098. 
(1) by inserting a comma after "therefrom" the first place it 
appears; 
(2) by striking out "banks" and inserting in lieu thereof 
"associations"; and 
(3) by striking out "742(a)" and inserting in lieu thereof 
"3124". 
SEC. 402. AMENDMENTS RELATED TO SECTION 410 OF THE 1987 ACT. 
(a) Section 41(Ka) of the 1987 Act is amended— 
12 use 20ii 
(1) by inserting "Farm Credit System" after "each"; and note. 
(2) by adding at the end the following: "The mergers required 
by this section shall be implemented without regard to title 
vn.". 
(b) Section 410(b) of the 1987 Act is amended by striking out "The" 
and inserting in lieu thereof "Notwithstanding section 1.6 (as added 
by section 401 of this Act), the". 
(c) Section 41(Kc) of the 1987 Act is amended— 
(1) by inserting "established under section 6.0" after "Assist-
ance Board"; and 
(2) by inserting "established under section 6.20" after "Assist-
ance (Corporation". 
(d) Section 410(d) of the 1987 Act is amended by striking out "The" 
and inserting in lieu thereof "Notwithstanding section 1.4 (as added 
by section 401 of this Act), the". 
SEC. 403. AMENDMENTS RELATED TO SECTION 411 OF THE 1987 ACT. 
Paragraphs (2) and (3) of section All(b) of the 1987 Act are each 12 USC 2071 
amended by striking out "6-month" and inserting in lieu thereof note. 
"12-month''. 
SEC. 404. AMENDMENTS RELATED TO SECTION 412 OF THE 1987 ACT. 
(a) The section heading of section 412 of the 1987 Act is amended 12 use 2002 
to read as follows: 
note. 
"SEC. 412. CONSOLIDATION OF DISTRICT FARM CREDIT BANKS.". 
(b) Section 412(aX2) of the 1987 Act is amended— 
(1) by striking out the second comma; 
(2) by striking out "System banks" and inserting in lieu 
thereof "Banks"; 
(3) by striking out "farm credit banks" and inserting in lieu 
thereof "Farm Credit Banks". 
(c) Section 412(bXl) of the 1987 Act is amended— 
(1) by striking out "(bX2)" and inserting in lieu thereof 
"(aX2)"; and 
(2) by striking out "paragraph (2)" and inserting in lieu 
thereof "paragraph (3)". 
102 STAT. 1000 
PUBLIC LAW 100-399—AUG. 17, 1988 
12 u s e 2002 
(d) Section 412(bX2) of the 1987 Act is amended by striking out 
"°*®- 
"Proposals" and inserting in lieu thereof "The proposal". 
SEC. 405. AMENDMENTS RELATED TO SECTION 413 OF THE 1987 ACT. 
12 use 2121 
(a) Section 413(aX2XA) of the 1987 Act is amended by striking out 
no*® 
"subparagraph (C)" and inserting in lieu thereof "paragraph (IXC)". 
(b) Section 413(aX3) of the 1987 Act is amended— 
(1) by striking out the open quotation mark; 
(2) by striking out "and subscribers to the guaranty funds"; 
and 
(3) by inserting "for cooperatives" after "banks". 
(c) Section 413(bXlXAXi) of the 1987 Act is amended by striking 
out ", or a subscriber to the guaranty fund of". 
(d) Section 413(bX4XA) of the 1987 Act is amended by mserting 
"for cooperatives" after "district bsmks". 
(e) Section 413(bX6XAXii) of the 1987 Act is amended by striking 
out the comma. 
(f) Section 413(bX6XB) of the 1987 Act is amended by striking out 
the first comma. 
(g) Section 413(bX6XC) of the 1987 Act is amended by striking out 
"(a)" and inserting in lieu thereof 
"(hW. 
SEC. 406. AMENDMENTS RELATED TO THE FIRST SECTION 414 OF THE 1987 
ACT. 
12 use 2121 
(a) Subsection (a) of the first section 414 of the 1987 Act is 
note 
amended by striking out "(a) INITIAL BOARD.—The" and inserting in 
lieu thereof "Notwithstanding section 3.2, the". 
12 use 2121 and 
(b) Subsection (b) of the first section 414 of the 1987 Act is hereby 
note. 
repealed, and the 1987 Act and the Farm Credit Act of 1971 shall be 
applied and administered as if such subsection had not been 
enacted. 
SEC. 407. AMENDMENTS RELATED TO THE FIRST SECTION 415 OF THE 1987 
ACT. 
12 use 2141. 
(a) Section 3.20(a) is amended— 
(1) by striking out "in this section"; and 
(2) by inserting ", established under section 413 of the Agricul-
tural Credit Act of 1987," before "shall". 
O
t
>
) Section 3.20(b) is amended by inserting "except" before "as 
otherwise". 
12 use 2142. 
(c) Section 3.21flt>X2) is amended by adding at the end the 
following: 
"(C) THIRD MEMBER.—The nomination and election of the 
third member from each district shall be carried out in 
accordance with procedures prescribed in the bylaws of the 
(d) Section 3.21(bX2XBXi)(I) is amended to read as follows: 
"(I) at the close of the immediately preceding 
fiscal year of the consolidated bank; or'. 
12 use 2143. 
(e) Section 3.22 is amended— 
(1) by striking out "United Bank for Cooperatives or the 
National Bank for C!ooperatives" and inserting in lieu thereof 
"consolidated bank"; and 
(2) by striking out "metier" and inserting in lieu thereof 
"establishment of the bank under section 413 of the Agricul-
tural Credit Act of 1987". 
12 use 2146. 
(f) Section 3.25 is amended to read as follows: 
PUBLIC LAW 100-399—AUG. 17, 1988 
102 STAT. 1001 
"SEC. 3.25. CAPITALIZATION, 
"In accordance with section 4.3A, each consolidated bank shall 
provide, through bylaws and subject to Farm Credit Administration 
regulations, for the capitalization of the bank and the manner in 
which bank stock shall be issued, held, transferred, and retired and 
bank earnings distributed.". 
(g) Section 3.27 is amended by striking out "taxable institution" 
and inserting in lieu thereof "cooperative". 
SEC. 408. AMENDMENTS RELATED TO SECTION 416 OF THE 1987 ACT. 
(a) The title heading of title VII is amended to read as follows: 
"TITLE VII—RESTRUCTURING OF SYSTEM 
INSTITUTIONS" 
12 use 2148. 
(b) Section 7.0 is amended— 
(1) by striking out "Two or more" and inserting in lieu thereof 
"The"; and 
(2) in paragraph (3), by striking out "in accordance" and all 
that follows through "by" and inserting in lieu thereof "with 
each association entitled to cast a number of votes equal to the 
number of its voting". 
(c) Section 7.1 is amended to read as follows: 
"SEC. 7.1. BOARD OF DIRECTORS. 
"Each merged bank shall elect a board of directors of such 
number, for such term, in such manner, and with such qualifica-
tions, as may be required in its bylaws, except that at least one 
member shall be elected by the other directors, which member shall 
not be a director, officer, employee, or stockholder of a System 
institution.". 
(d) Subtitle A of title VII is amended by striking out sections 7.3 
and 7.4 and inserting in lieu thereof the following: 
"SEC. 7.3. CAPITALIZATION. 
"In accordance with section 4.3A, each merged bank shall provide, 
through bylaws and subject to Farm Credit Administration regula-
tions, for the capitalization of the bank and the manner in which 
bank stock shall be issued, held, transferred, and retired and bank 
earnings distributed.". 
(e) Subtitle A of title VII is amended by redesignating section 7.5 
as section 3.29, and by transferring such section, as so amended, to 
the end of part B of title III. 
(0 Section 7.6(a) is amended— 
(1) by striking out "ASSIGNMENTS.—" and inserting in lieu 
thereof "VOLUNTARY TRANSFERS.—"; 
(2) by striking out "assign" and inserting in lieu thereof 
"transfer"; 
(3) by striking out "sections 1.6 through 1.9" and inserting in 
lieu thereof "this Act"; 
(4) by striking out "assignment" and inserting in lieu thereof 
"transfer"; and 
(5) in paragraph (3), by striking out "7.6" and inserting in lieu 
thereof "7.8, respectively". 
(g) Section 7.6(b) is amended— 
12 use 2279a. 
12 use 2279a-l. 
12 use 2279a-3, 
2279a-4. 
12 use 2279a-5, 
2149a. 
12 use 2279b. 
102 STAT. 1002 
PUBLIC LAW 100-399—AUG. 17, 1988 
12 use 2279b. 
12 use 2279c. 
12 use 2279b, 
2279c. 
12 use 2279C-1. 
(1) by striking out ''an assignment described in subsection (a)" 
and inserting in lieu thereof "a transfer described in subsection 
(a) or (d)"; and 
(2) in paragraph (2), by striking out "Federal land" the first 
place it appears. 
(h) Section 7.6(c) is amended— 
(1) by striking out "assignments or"; and 
(2) by striking out the second sentence. 
(i) The section heading and text of section 7.7 are amended to read 
as follows: 
"(d) MANDATORY TRANSFER.—On the merger of one or more 
production credit associations with one or more Federal land bank 
associations, the bank supervising the Federal land bank association 
shall transfer all of the direct lending authority of the bank in the 
territory served by such Federal land bank association to such 
merged association.". 
(j) The provision amended by subsection (i) of this section, as so 
amended, is hereby transferred to the end of section 7.6, where such 
transferred provision shall become a new subsection (d). 
(k) Section 7.8(bX2) is amended by striking out the second 
sentence. 
(1) Section 7.8 is amended by striking out paragraphs (2) and (3) of 
subsection (c) and subsection (d) and inserting in lieu thereof the 
following: 
"(2) CAPITAUZATION.—In accordance with section 4.3A, each 
merged association shall provide, through bylaws and subject to 
Farm Oedit Administration regulations, for the capitalization 
of the association and the manner in which association stock 
shall be issued, held, transferred, and retired, and association 
earnings shall be distributed.", 
(m) Subtitle B of title VII is amended by redesignating chapter 3 
as chapter 4, and by inserting before section 7.9 the following: 
"Chapter 3—Reconsideration'*. 
12 use 2279C-2. 
(n) Section 7.9(a) is amended— 
(1) in pars^aph (1), by striking out "section 5.17(aX2)" and 
inserting in lieu thereof "this Act"; 
(2) in paragraph (5), by inserting "or 7.13" before the semi-
colon; 
(3) in paragraph (6), by striking out "and" and inserting in 
lieu thereof "or"; 
(4) in paragraph (7), by striking out "7.13" and inserting in 
lieu thereof "7.12"; and 
(5) by redesignating paragraphs (5), (6), and (7), as paragraphs 
(4), (5), and (6), respectively. 
(o) Section 7.9(b)(2) is amended— 
(1) by striking out the third comma; and 
(2) by inserting "banks or" after "such". 
i2USC2279e. 
(p) Section 7.11(aXl) is amended— 
(1) by striking out "or assignment"; and 
(2) by striking out "such institutions" and inserting in lieu 
thereof "the institutions involved". 
12 use 2279f. 
(q) Section 7.12(b) is amended to read as follows: 
"(b) POWERS AND CAPITAUZATION.—Sections 7.2 and 7.3 shall 
apply to banks merged under this section.". 
PUBLIC LAW 100-399—AUG. 17, 1988 
102 STAT. 1003 
(r) Section 7.12(cX2XB) is amended by striking out "members" and 12 use 2279f. 
inserting in lieu thereof "directors". 
(s) Section 7.13(aX4) is amended by striking out "Bank" and 12 use 2279f-l. 
inserting in lieu thereof "Banks involved". 
(t) Section 7.13(b) is amended by striking out "(\>), (c), and (d)" and 
inserting in lieu thereof "(b) and (c)". 
(u) Title Vn is amended by adding at the end the following new 
subtitle: 
"Subtitle E—Taxation of Merger Transactions 
1
2 use 2
2
7
9
g 
12 use 2153, 
2181-2183, 
2222-2227, 2252. 
"SEC. 7.14. TRANSACTIONS T
O ACCOMPLISH MERGERS EXEMPT F
R
O
M 
CERTAIN STATE TAXES. 
"No State or political subdivision thereof may treat the merger or Real property. 
consolidation of two or more institutions of the Farm Credit System 
under this title or title IV of the Agricultural Credit Act of 1987 as 
resulting in a change of ownership of any property owned by any of 
such merging or consolidating institutions, for purposes of any law 
of such State or poUtical subdivision providing for reassessment of 
property on the occurrence of a change of ownership or imposing a 
tax on the ownership or transfer of property.". 
SEC. 409. AMENDMENTS RELATED TO THE SECOND SECTION 414 AND 
SECOND SECTION 415 OF THE 1987 ACT. 
(a) Subtitle B of title IV of the 1987 Act is amended by redesignat-
ing the second section 414 and the second section 415, as sections 417 
and 418, respectively. 
(b) The table of contents of the 1987 Act is amended by striking 
out the items relating to the second section 414 and the second 
section 415, and inserting in lieu thereof the following: 
"Sec. 417. Nondiscrimination. 
"Sec. 418. Conforming amendments.". 
(c) Subsection (c) of section 418 of the 1987 Act (as so redesignated 
by subsection (a) of this section) is hereby repealed, and the Farm 
Credit Act of 1971 shall be applied and administered, and the 
amendments made by sections 430 and 802(u) of the 1987 Act shedl 
take effect, as if such subsection (c) had not been enacted. 
(d) Sections 5.1 through 5.6 are hereby repealed. 
(e) Section 5.17(aX2) is amended— 
(1) by inserting "approve" before "the consolidation"; and 
(2) by striking out "that they serve" and inserting in lieu 
thereof "of institutions". 
SEC. 410. A
M
E
N
D
M
E
N
T RELATED T
O SECTION 421 OF THE 1987 ACT. 
Section 3.8(bXlXC) is amended by striking out "make" and insert- 12 USC 2129. 
ing in lieu thereof "makes". 
SEC. 411. AMENDMENTS RELATED T
O SECTION 422 OF THE 1987 ACT. 
(a) Section 4.29(aXl) is amended by striking out "sections 1.11, 12 USC 2218. 
1.15, 2.5, and 2.16" and inserting in lieu thereof "titles I and II". 
(b) Section 4.29(aX2) is amended by striking out "Federal inter-
mediate credit banks" and inserting in lieu thereof "Farm Credit 
Banks". 
12 use 
2222-2227, 
2222 note. 
12 use 
2222^-2227. 
12 use 2258. 
102 STAT. 1004 
PUBLIC LAW 100-399—AUG. 17, 1988 
SEC. 412. AMENDMENTS RELATED TO SECTION 426 OF THE 1987 ACT. 
12 use 2017. 
(a) Section 1.9(b) is amended by striking out "approved by" and 
inserting in lieu thereof "prescribed by regulations of ". 
(b) Section 1.9(c) is amended— 
(1) by striking out "appraisal" the second place it appears; 
and 
(2) by striking out "and approved by" and inserting in lieu 
thereof "in accordance with regulations of". 
SEC. 413. AMENDMENTS RELATED TO SECTIONS 427 AND 428 OF THE 1987 
ACT. 
Part H of title IV is amended by redesignating section 4.37 (as 
12 use 2219c, 
added by section 427 of the 1987 Act) and section 4.38, as sections 
22i9d. 
4,38 and 4.39, respectively. 
SEC. 414. AMENDMENT RELATED TO SECTION 430 OF THE 1987 ACT. 
Part D of title IV is amended by adding at the end the following: 
12 use 2209. 
"SEC. 4.21. COMPENSATION OF DIRECTORS. 
"No member of the board of directors of a System bank may 
receive more than $15,000 per year under this Act as compensation 
for serving as a director of such bank.". 
SEC. 415. AMENDMENTS RELATED TO SECTION 431 OF THE 1987 ACT. 
12 use 2245. 
(a) Section 5.11(cX2XC) is amended by striking out "5315" and 
inserting in lieu thereof "5373". 
12 use 2096. 
(b) Section 2.15(cXl) is amended to read as follows: 
"(cXD Notwithstanding any territorial limitation in the charter of 
a production credit association located in a district in which there 
are only two such associations, the Farm Credit Administration 
Board, on request of such association, may permit such association 
to provide credit and technical assistance to any borrower who is 
denied credit by the other production credit association in the 
district if the Board determines that such other production credit 
association in the district is unduly restrictive in the application of 
credit standards.". 
SEC. 416. AMENDMENTS RELATED TO SECTION 432 OF THE 1987 ACT. 
12 use 2250. 
(a) Section 5.15(aX2XA) is amended by striking out "such assess-
ment" and inserting in lieu thereof "the assessment described in 
paragraph (IXB)". 
O
t
>
) Section 5.15(aX2XC:0 is amended by striking out "specified" and 
inserting in lieu thereof "described". 
12 use 2254. 
(c) Section 5.19(a) is amended by striking out "5" and inserting in 
lieu thereof "three". 
SEC. 417. AMENDMENTS RELATED TO SECTION 433 OF THE 1987 ACT. 
12 use 2071 
(a) Section 433(a) of the 1987 Act is amended— 
note. 
(1) by striking out "this Act" and inserting in lieu thereof 
"law"' and 
(2) by striking out "the Agricultural Credit Act of 1987" and 
inserting in lieu thereof "this Act". 
(b) Section 433(b) of the 1987 Act is amended by striking out 
"subsection" and inserting in lieu thereof "section". 
(c) Section 433(cX2XB) of the 1987 Act is amended by striking out 
"such adjoining district" and inserting in lieu thereof "the adjoining 
district bank". 
PUBLIC LAW 100-399—AUG. 17, 1988 
102 STAT. 1005 
(d) Section 433(cX2XC) of the 1987 Act is amended by inserting 12 use 2071 
'Farm Credit System" before "Assistance Board". 
note 
TITLE V—AMENDMENTS RELATED TO 
TITLE V OF THE 1987 ACT 
SEC. 501. AMENDMENT RELATED TO SECTION 501 OF THE 1987 ACT. 
Section 501(b) of the 1987 Act is amended by striking out the first 
comma. 
SEC. 502. AMENDMENTS RELATED TO SECTION 503 OF THE 1987 ACT. 
(a) Section 503(aXlXB) of the 1987 Act is amended by inserting 
"effective b^inning" before "on". 
(b) Section 503(a)(2) of the 1987 Act is amended by strikii^ out 
"paragraph (1)" and inserting in lieu thereof "section 501". 
TITLE VI—AMENDMENTS RELATED TO 
TITLE VII OF THE 1987 ACT 
7 u s e 5101. 
7 u s e 5103. 
SEC. 601. AMENDMENTS RELATED TO SECTION 702 OF THE 1987 ACT. 
(a) Section 8.0(9XBXii) is amended— 
(1) by striking out "hold" and inserting in lieu thereof "hold-
ing"; and 
(2) by striking out "and" the first place it appears. 
(b) Subsections (aXD and (bX3) of section 8.2 are each amended by 
striking out "effective date" and inserting in lieu thereof "date of 
the enactment". 
(c) Section 8.3(cX4) is amended by striking out "the persons" and 
inserting in lieu thereof "such persons". 
(d) The penultimate sentence of section 8.4(aXl) is amended— 
(1) by inserting "and" before "that are entitled"; and 
(2) by inserting ", including national banking associations 
(which shall be allowed to purchase and hold such stock)" before 
the period. 
(e) Section 8.4(eXl) is amended by striking out "Association" and 
inserting in lieu thereof "(Corporation". 
(0 Section 8.6(aXl) is amended— 
(1) by striking out "in, or obligations" and inserting in lieu 
thereof "solely in, or obligations fully"; and 
(2) by striking out "any pool of qualiHed loans" and inserting 
in lieu thereof "any pool consisting solely of qualified loans 
which meet the standards established under section 8.8 and 
which are". 
(g) Section 8.6(e) is amended— 
(1) in paragraph (1), by inserting "and" at the end; 
(2) by striking out paragraph (2); and 
(3) by redesignating paragraph (3) as paragraph (2). 
(h) Section 8.6(fKl) is amended by striking out "effective date" and 
inserting in lieu thereof "date of the enactment". 
(i) Section 8.8(a) is amended by inserting "permanent" before 
"Board" the first place it appears. 
(j) Section 8.9 is amended by striking out "and 4.37" each place it 
appears and inserting in lieu thereof "4.14D, and 4.36". 
12 u s e 2279aa. 
12 use 
2279aa-2. 
12 use 
2279aa-3. 
12 use 
2279aa-4. 
12 use 
2279aa-6. 
12 use 
2279aa-8. 
12 use 
2279aa-9. 
102 STAT. 1006 
PUBLIC LAW 100-399—AUG. 17, 1988 
12 use 
2279aa-12. 
12 use 2279aa 
note. 
12 use 2012, 
2033, 2072, 2093. 
7 use 1988. 
eontracts. 
(k) Section 8.12(aXl) is amended by inserting ", or obligations 
backed by," before "a pool". 
(1) Section 8.12(bX2) is amended by striking out "effective date" 
and inserting in lieu thereof "date of the enactment". 
SEC. 602. AMENDMENT RELATED TO SECTION 703 OF THE 1987 ACT. 
Section 9105(aX4X6Xi) of title 31, United States Ckxle, is amended 
by striking out "Association" and inserting in lieu thereof 
"Corporation". 
SEC. 603. AMENDMENTS RELATED TO SECTION 704 OF THE 1987 ACT. 
Paragraphs (1) and (3) of section 704(a) of the 1987 Act are each 
amended by striking out "title" and inserting in lieu thereof 
"subtitle". 
SEC. 604. AMENDMENTS RELATED TO SECTION 705 OF THE 1987 ACT. 
Sections 1.4(23), 1.15(22), 2.1(21), and 2.12(21) are each amended by 
striking out "to". 
SEC. 605. AMENDMENTS RELATED TO SECTION 711 OF THE 1987 ACT. 
Section 338(f) of the Consolidated Farm and Rural Development 
Act is amended by adding at the end the following: 
"(5) The Secretary may contract for goods and services to be used 
for the purposes of this subsection without regard to the provisions 
of titles 5,40, and 41, United States Code, and any regulations issued 
thereunder.". 
12 use 2017 and 
note. 
12 use 2033. 
12 u s e 2154 and 
note, 2202, 2245. 
12 use 2264. 
12 use 2265. 
TITLE VII—AMENDMENTS RELATED TO 
TITLE VIII OF THE 1987 ACT 
SEC. 701. AMENDMENT RELATED TO SECTION 802 OF THE 1987 ACT. 
Subsection (d) of section 802 of the 1987 Act is hereby repealed, 
and section 1.9 shall be applied and administered as if such subsec-
tion had not been enacted. 
SEC. 702. AMENDMENTS RELATED TO SECTION 805 OF THE 1987 ACT. 
(a) Section 1.15(12) is amended by inserting "by" before "the 
association". 
(b) Subsections (q), (s), and (x) of section 805 of the 1987 Act are 
hereby repealed, and sections 4.3(c), 4.14, and 5.11 shall be applied 
and administered as if such subsections had not been enacted. 
(c) Title IV is amended by redesignating parts G and H as parts F 
and G, respectively. 
(d) Section 5.28(e) is amended by striking out "(d)" and inserting in 
lieu thereof "(c)". 
(e) Section 5.290b) is amended by striking out "may" the second 
place it appears. 
TITLE VIII—AMENDMENTS RELATED TO 
TITLE IX OF THE 1987 ACT 
12 use 2001 
note. 
SEC. 801. AMENDMENTS RELATED TO SECTION 901 OF THE 1987 ACT. 
Section 9010>X2) of the 1987 Act is amended— 
(1) by inserting "et seq." after "2201"; 
PUBLIC LAW 100-399—AUG. 17, 1988 
102 STAT. 1007 
(2) by striking out the fourth comma; and 
(3) by striking out "title" the second place it appears and 
inserting in lieu thereof "Act". 
TITLE IX—OTHER AMENDMENTS TO THE 
FARM CREDIT ACT OF 1971 
SEC. 901. OTHER AMENDMENTS. 
(a) Sections 1.21 and 2.8 are each amended by striking out "742(a)" 12 use 2055, 
and inserting in lieu thereof "3124". 
2079 
(b) Sections 2.1(12) and 3.1(12) are each amended by strikmg out 12 USC 2072, 
"as defined in section 2 of the Federal Deposit Insurance Act" and ^122. 
inserting in lieu thereof "(within the meaning of section 3 of the 
Federal Deposit Insurance Act (12 U.S.C. 1813))". 
(c) Section 3.0 is amended by striking out "one or more" and 12 use 2121. 
all that follows through "this Act" and inserting in lieu thereof 
"another bank". 
(d) Subsections (a) and Qy) of section 3.2 are amended to read as 12 use 2123. 
follows: 
"(a) Each bank for cooperatives not merged into the United Bank 
for Cooperatives or the National Bank for Clooperatives shall elect a 
board of directors of such number, for such term, in such manner, 
and with such qualifications as may be required in its bylaws, except 
that at least one member shall be elected by the other directors, 
which member shall not be a director, officer, employee, or stock-
holder of a System institution. 
"(b) The board of directors of the CJentral Bank for Cooperatives 
shall consist of one member elected by the board of each bank for 
cooperatives, including the United Bank for Cooperatives if the 
Central Bank for (Cooperatives is not merged into such bank, and 
one member appointed by the Farm Credit Administration.". 
(e) Section 3.8(aX4) is amended by striking out "district board" and 12 USC 2129. 
inserting in lieu thereof "bank board". 
(f) Section 4.12(a) is amended by striking out "district board" and 12 use 2183. 
inserting in lieu thereof "board of the supervising bank". 
(g) Section 4.15 is amended by striking out "district" the first and 12 use 2203. 
second places it appears and inserting in lieu thereof "bank". 
(h) Section 4.17 is amended by striking out "pursuant to section 12 use 2205. 
2.3 of this Act" and inserting in lieu thereof "and Farm Credit 
Banks". 
(i) Section 4.19(a) is amended by inserting "Farm Credit Bank" 12 USC 2207. 
after "district". 
(j) Section 4.19(b) is amended— 
(1) by striking out "The Federal land bank and the Federal 
intermediate credit hank" and inserting in lieu thereof "The 
Farm Credit Bank"; 
(2) by striking out "their" each place it appears and inserting 
in lieu thereof "its"; 
(3) by striking out "of this section"; 
(4) by striking out "banks" and inserting in lieu thereof 
"bank"; and 
(5) by striking out "a joint" and inserting in lieu thereof "an". 
(k) Section 4.28 is amended— 
12 USC 2214. 
(1) by inserting "or associations" after "exempt banks"; and 
102 STAT. 1008 
PUBLIC LAW 100-399—AUG. 17, 1988 
(2) by striking out "1.21, 2.8/' and inserting in lieu thereof 
"1.15, 2.17,". 
12 use 2251. 
(1) Section 5.16 is amended by striking out "district" and inserting 
in lieu thereof "bank". 
12 use 2252. 
(m) Section 5.17(a) is amended— 
(1) in paragraph (1), by striking out "district boards" and 
inserting in lieu thereof "district banks"; 
(2) in paragraph (2), by striking out "boards of the districts" 
and inserting in lieu thereof "district bank boards"; and 
(3) in paragraph (3), by striking out "Federal land banks" and 
all that follows through "of this Act" and inserting in lieu 
thereof "Farm Credit Banks under section 4.19(b)". 
(n) Section 5.17(dXl) is amended— 
(1) by striking out "of this Act" each place it appears; and 
(2) by striking out "2.3" and inserting in lieu thereof "1.7(b)". 
(o) The title heading of title V is amended to read as follows: 
"TITLE V—FARM CREDIT 
ADMINISTRATION ORGANIZATION'!. 
(p) Title V is amended by striking out the heading of part A. 
12 use 2221. 
(q) Section 5.0 is amended— 
(1) by striking out "SEC. 5.0. CREATION OP" and inserting in 
lieu thereof "(b) FARM CREDIT"; and 
(2) by striking out "district boards" and inserting in lieu 
thereof "boards of the banks in each district". 
12 use 2221, 
(r) The provision amended by subsection (q) of this section, as so 
2002. 
amended, is hereby transferred to the end of section 1.2, where such 
transferred provision shall become a new subsection (b). 
12 use 2002. 
(s) Section 1.2 is amended— 
(1) by inserting "(a) COMPOSITION.—" before "The Farm Credit 
System shall"; and 
(2) by striUng out "the regulation" and inserting in lieu 
thereof "regulation". 
TITLE X—EFFECTIVE DATES 
12 use 2002 
SEC. 1001. EFFECTIVE DATES. 
"° ®
' 
(a) GENERAL RULE.—Except as provided in subsection (b), the 
amendments made by this Act shall take effect as if enacted imme-
diately after the enactment of the 1987 Act. 
PUBLIC LAW 100-399—AUG. 17, 1988 
102 STAT. 1009 
(b) EXCEPTIONS.—The amendments made by sections 102(b), 102(f), 
102(g), 102(h), 201(q), 302(c), 302(d), 302(e). 401, 402(b), 409(d), 411,414, 
and 901 (other than by subsections (a), (b), (c), (e), (f), and (g) thereof) 
of this Act shall take effect immediately after the amendment made 
by section 401 of the 1987 Act takes effect. 
Approved August 17, 1988. 
LEGISLATIVE HISTORY—H.R. 3980: 
CONGRESSIONAL RECORD, Vol. 134 (1988): 
Feb. 23, considered and passed House. 
Aug. 3, considered and passed Senate.