In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Q: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Farm Credit System Agricultural
Export and Risk Management Act''.

SEC. 2. PARTICIPATION DEFINED.

Section 3.1(11)(B) of the Farm Credit Act of 1971 (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' refers to multilender transactions, including
syndications, assignments, loan participations, subparticipations, or
other forms of the purchase, sale, or transfer of interests in loans,
other extensions of credit, or other technical and financial
assistance.''.

SEC. 3. AGRICULTURAL EXPORT FINANCING.

Section 3.7(b) of the Farm Credit Act of 1971 (12 U.S.C. 2128(b))
is amended--
(A) in paragraph (1)--
(i) by striking ''assistance to (A)'' and inserting
''assistance to'';
(ii) by striking ''the export or'' and inserting ''the'';
and
(iii) by striking ''and (B)'' and all that follows through
''subparagraph (A): Provided, That a'' and inserting ''if
the''; and
(B) by striking paragraph (2) and inserting the following new
paragraph:
''(2)(A) A bank for cooperatives may make or participate in loans
and commitments to, and extend other technical and financial assistance
to--
''(i) any domestic or foreign party for the export, including
(where applicable) the cost of freight, of agricultural commodities
or products thereof, farm supplies, or aquatic products from the
United States under policies and procedures established by the bank
to ensure that the commodities, products, or supplies are
originally sourced, where reasonably available, from one or more
eligible cooperative associations described in section 3.8(a) on a
priority basis, except that if the total amount of the balances
outstanding on loans made by a bank under this clause that--
''(I) are made to finance the export of commodities,
products, or supplies that are not originally sourced from a
cooperative, and
''(II) are not guaranteed or insured, in an amount equal to
at least 95 percent of the amount loaned, by a department,
agency, bureau, board, commission, or establishment of the
United States or a corporation wholly-owned directly or
indirectly by the United States,
exceeds an amount that is equal to 50 percent of the bank's
capital, then a sufficient interest in the loans shall be sold by
the bank for cooperatives to commercial banks and other non-System
lenders to reduce the total amount of such outstanding balances to
an amount not greater than an amount equal to 50 percent of the
bank's capital; and
''(ii) except as provided in subparagraph (B), any domestic or
foreign party in which an eligible cooperative association
described in section 3.8(a) (including, for the purpose of
facilitating its domestic business operations only, a cooperative
or other entity described in section 3.8(b)(1)(A)) has an ownership
interest, for the purpose of facilitating the domestic or foreign
business operations of the association, except that if the
ownership interest by an eligible cooperative association, or
associations, is less than 50 percent, the financing shall be
limited to the percentage held in the party by the association or
associations.
''(B) A bank for cooperatives shall not use the authority provided
in subparagraph (A)(ii) to provide financial assistance to a party for
the purpose of financing the relocation of a plant or facility from the
United States to another country.''.

SEC. 4. CONFORMING AMENDMENT.

Section 3.8(b)(1) of the Farm Credit Act of 1971 (12 U.S.C.
2129(b)(1)) is amended--
(A) by striking subparagraph (B);
(B) by redesignating subparagraphs (C), (D), and (E) as
subparagraphs (B), (C), and (D), respectively; and
(C) by aligning the margin of subparagraph (D) (as so
redesignated) so as to align with the margin of subparagraph (C)
(as so redesignated).
SEC. 5. LOAN PARTICIPATION AUTHORITY FOR FARM CREDIT BANKS AND DIRECT
LENDER ASSOCIATIONS.
In General.--Title IV of the Farm Credit Act of 1971 (12 U.S.C.
2151 et seq.) is amended by inserting after section 4.18 (12 U.S.C.
2206) the following new section:

''SEC. 4.18A. AUTHORITY OF FARM CREDIT BANKS AND DIRECT LENDER
ASSOCIATIONS TO PARTICIPATE IN LOANS TO SIMILAR ENTITIES
FOR RISK MANAGEMENT PURPOSES.

''(a) Definitions.--As used in this section:
''(1) Participate and participation.--The terms 'participate'
and 'participation' shall have the meaning provided in section
3.1(11)(B)(iv).
''(2) Similar entity.--The term 'similar entity' means a person
that--
''(A) is not eligible for a loan from the Farm Credit Bank
or association; and
''(B) has operations that are functionally similar to a
person that is eligible for a loan from the Farm Credit Bank or
association in that the person derives a majority of the income
of the person from, or has a majority of the assets of the
person invested in, the conduct of activities that are
functionally similar to the activities that are conducted by an
eligible person.
''(b) Loan Participation Authority--Notwithstanding any other
provision of this Act, any Farm Credit Bank or direct lender
association chartered under this Act may participate in any loan of a
type otherwise authorized under title I or II made to a similar entity
by any person in the business of extending credit, except that a Farm
Credit Bank or direct lender association may not participate in a loan
under this section if--
''(1) the participation would cause the total amount of all
participations by the Farm Credit Bank or association under this
section involving a single credit risk to exceed 10 percent (or the
applicable higher lending limit authorized under regulations issued
by the Farm Credit Administration if the stockholders of the
respective Farm Credit Bank or association so approve) of the total
capital of the Farm Credit Bank or association;
''(2) the participation by the Farm Credit Bank or association
would equal or exceed 50 percent of the principal of the loan or,
when taken together with participations in the loan by other Farm
Credit System institutions, would cause the cumulative amount of
the participations by all Farm Credit System institutions in the
loan to equal or exceed 50 percent of the principal of the loan;
''(3) the participation would cause the cumulative amount of
participations that the Farm Credit Bank or association has
outstanding under this section to exceed 15 percent of the total
assets of the Farm Credit Bank or association; or
''(4) the loan is of the type authorized under section 1.11(b)
or 2.4(a)(2).
''(c) Prior Approval Required.--
''(1) In general.--With respect to a similar entity that is
eligible to borrow from a bank for cooperatives under title III,
the authority of a Farm Credit Bank or association to participate
in a loan to the entity under this section shall be subject to the
prior approval of the bank for cooperatives having, at the time the
loan is made, the greatest loan volume in the State in which the
headquarters office of the similar entity is located.
''(2) Terms and conditions.--Approval under paragraph (1) may
be granted on an annual basis and under such terms and conditions
as may be agreed on between the Farm Credit Bank or association, as
the case may be, and the bank for cooperatives granting the
approval.
''(3) Approval by supervising farm credit bank.--An association
may not participate in a loan to a similar entity under this
section without the approval of the supervising Farm Credit Bank of
the association.''.

SEC. 6. CONFORMING AMENDMENTS.

Section 3.1(11)(B)(i)(I)(bb) of the Farm Credit Act of 1971 (12
U.S.C. 2122(11)(B)(i)(I)(bb)) is amended--
(A) by striking ''the other banks for cooperatives under this
subparagraph'' and inserting ''other Farm Credit System
institutions''; and
(B) by striking ''all banks for cooperatives'' and inserting
''all Farm Credit System institutions''.

Speaker of the House of Representatives.

Vice President of the United States and
President of the Senate.
A:
Farm Credit System Agricultural Export and Risk Management Act - Amends the Farm Credit Act of 1971 to permit banks for cooperatives to participate in agricultural export financing arrangements with domestic or foreign businesses.
Prohibits the financing of a U.S. facility's foreign relocation.
Authorizes a Farm Credit Bank or direct lender association to participate in loans to similar but non-Farm Credit System entities for risk management purposes. Requires supervising Farm Credit Bank approval.