Opinion ID: 506173
Heading Depth: 2
Heading Rank: 3

Heading: The Agricultural Credit Act of 1987

Text: 12 The statutory and factual backdrop to this dispute has changed considerably since oral argument. The Agricultural Credit Act of 1987, signed into law on January 6, 1988, has effectively dismantled the particular assessment program challenged by appellants. Section 207(a) of the 1987 Act repeals 12 U.S.C. Secs. 2216-16k, 2152, which provided for the establishment of the Capital Corporation and the mandatory stock purchases. Section 201-6.0(a) requires the FCA to revoke the charter of the Capital Corporation within fifteen days of the passage of the new legislation. Section 301(a)(1)(A) requires the FCA to issue regulations establishing capital adequacy standards within 120 days of passage. 13 In place of the Capital Corporation, the 1987 Act provides for the establishment of the Farm Credit System Financial Assistance Corporation (Financial Assistance Corporation), which is authorized to issue bonds guaranteed by the Secretary of the Treasury as a means of funding capital assistance programs. Section 201-6.26. To supply an initial source of funds to back such bonds in the event of default, section 201-6.29 requires certain institutions to make a one-time purchase of stock in the Financial Assistance Corporation, based on formulas outlined in sections 201-6.29(a)(1)(A) and (B). The money obtained from the forced purchases is to be placed in a trust fund until all bonds have been paid (section 201-6.25(b)); any funds remaining will then be transferred to the Farm Credit System Insurance Corporation (section 201-6.31(b)). 14 On February 18, 1988, appellants were directed to buy approximately $12 million worth of stock under the new program. Appellants asked us to stay the assessments, which we declined to do. Central Kentucky Production Credit Ass'n v. United States, No. 86-5653 (D.C.Cir. Mar. 12, 1988). Appellants also sought to challenge the 1987 program by filing a separate suit in the U.S. District Court for the District of Columbia. Colorado Springs Production Credit Ass'n v. Farm Credit Administration, C.A. No. 88-0574 (D.D.C. filed Mar. 3, 1988). Section 201-6.29(e) of the 1987 Act provides that no suit or proceeding shall be maintained to enjoin or otherwise prevent ... the purchase of stock required under this section, unless the amount of stock required to be purchased under this section has been purchased and paid for in full. In order to satisfy this requirement, appellants paid the assessments on March 7, 1988. 15 We directed the parties to submit supplemental briefs outlining the impact of the 1987 Act on the current action. Neither party discussed appellants' request for a preliminary injunction. Rather, the government asked that the entire case be dismissed as moot because appellants will never be subject to assessment by the defunct Capital Corporation under the repealed statutory provision. Second Supplemental Brief for Federal Appellees at 3. Although appellants are no longer being assessed under the 1985 Act, they argue that the case is not moot because there is no substantial difference between the 1987 and 1985 Acts and because certain of the 1985 Act's implementing regulations remain in effect.