S.1479 - Farm Credit System Loan Restructuring Act100th Congress (1987-1988)
|Sponsor:||Sen. Boschwitz, Rudy [R-MN] (Introduced 07/09/1987)|
|Committees:||Senate - Agriculture, Nutrition, and Forestry|
|Latest Action:||Senate - 11/04/1987 Committee on Agriculture. Provisions of measure incorporated into measure S. 1665 ordered to be reported. (All Actions)|
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Summary: S.1479 — 100th Congress (1987-1988)All Information (Except Text)
Introduced in Senate (07/09/1987)
Farm Credit System Loan Restructuring Act - Amends the Farm Credit Act of 1971 to authorize the Central Reserve Fund Board (established by this Act) to issue up to $4,000,000,000 in federally guaranteed bonds. Authorizes the Secretary of the Treasury to assist in the interest payments on such bonds for five years.
Establishes the Central Reserve Fund Board.
Provides for Federal assistance to Farm Credit System institutions. Permits the use of Central Reserve Fund moneys to pay System institutions to enable them to redeem stock at par value and to otherwise remain financially viable. Requires the board of directors of a farm credit district to have a certain plan in place in order for any System institution in its district to be eligible.
Requires a recovery plan to be submitted within 60 days of the enactment of this Act. Requires a plan to: (1) establish a special credit team in the district to review on a case-by-case basis the nonaccrual and high risk loans; (2) describe how the team plans to restructure rather than foreclose on troubled loans whenever it is cheaper for the institution to do so; and (3) describe how the district will reduce its operating costs at least ten percent below their 1985 levels.
Requires that: (1) the restructuring of each loan be done by the System institution that holds the loan; and (2) the district have in place a system for monitoring restructured loans to determine whether the restructuring has been successful.
Sets forth a procedure for determining whether a loan should be restructured or foreclosed.
Requires the Farm Credit Administration to report quarterly to the Central Reserve Fund Board on the adherence of the districts to their filed plans. Directs the Board, on the basis of such reports, to determine whether or not a district should receive, or continue to receive, Federal assistance.
Provides for protection of borrower stock. Declares that during the five year period following enactment of this Act, in the case of any System institution loan to a borrower that is secured by borrower stock: (1) if the stock is retired, it shall be paid at par value; (2) if the borrower defaults on the loan, the stock may be canceled; or (3) under other specified circumstances, the stock may be otherwise disposed of.
Terminates the Farm Credit System Capital Corporation and transfers all of its assets and liabilities to the Central Reserve Fund.