Summary: S.1884 — 99th Congress (1985-1986)All Information (Except Text)

Bill summaries are authored by CRS.

Shown Here:
Senate agreed to House amendment with amendment (12/17/1985)

(Senate agreed to House amendment with an amendment)

Farm Credit Amendments Act of 1985 - Title I: Provisions to Strengthen the Operation of Farm Credit System Lending Institutions - Amends Part A of title IV of the Farm Credit Act of 1971 to merge specified revolving funds and make such funds available to the Farm Credit Administration (FCA) for the purchase on behalf of the United States of stock in the Farm Credit System Capital Corporation (established by this Act).

Replaces existing debt-to-capital provisions with authority to maintain adequate capital in Farm Credit System (FCS) institutions.

Empowers the FCA to appoint a receiver or conservator for an FCS institution in situations of: (1) insolvency; (2) substantial asset dissipation; (3) unsound conditions; (4) willful violation of a final cease and desist order; or (5) concealment of records.

Provides for the charter of a new Farm Credit System Capital Corporation (Corporation) within 60 days. Makes such Corporation a federally chartered instrumentality of the United States and an FCS institution. States that such Corporation shall be reviewed on December 31, 1987, at which time the FCA shall submit a report to the Congress together with any recommendations to extend such Corporation's charter. Directs the Corporation to provide financial and technical assistance to financially-troubled FCS institutions.

Sets forth related operating and administrative provisions.

States that the Corporation shall assume all assets and debts of the predecessor Corporation.

Authorizes the Secretary of the Treasury, upon FCA certification of need, to purchase Corporation obligations in order to assist FCS institutions.

Provides initial capitalization through institution contributions.

Authorizes the FCA, effective January 1, 1991, to establish a central FCS reserve to be held in the form of Treasury securities and demand deposits. Authorizes the use of such reserve to make temporary deposits and investments in financially-troubled FCS institutions.

Capitalizes such reserve through FCS institution contributions based on the proceeds of notes, bonds, or debentures. Provides that the tax status of consolidated obligations will not change because the issuance of such is joined in by the Corporation.

Title II: Regulation of Farm Credit System - Amends Part B of title V of the Farm Credit Act to state that the FCA shall be an independent executive agency. Vests management in a Farm Credit Administration Board. Sets forth related operating and administrative provisions, including authority to establish advisory committees.

Requires: (1) at least annual examinations of FCS institutions; and (2) each institution to make an annual audit report. Authorizes the FCA to publish reports of such examinations under specified circumstances.

Authorizes the FCA to: (1) initiate cease-and-desist and temporary cease-and-desist proceedings against FCS institutions or persons; and (2) initiate proceedings to remove an individual from office or suspend an officer or director in an FCS institution. Sets forth hearing, judicial review, and penalty provisions.

Title III: Protection for Farmers and Other Farm Credit System Borrowers - Amends the Farm Credit Act of 1971 to set forth loan disclosure (interest rates, variable loan rates, stock purchases) and access to information provisions (borrower document copies).

Provides for a credit review committee.

Requires, in cases of voluntary or involuntary association liquidation, that the supervising bank minimize the adverse effects on borrowers whose loans are purchased by other FCS institutions.

Prohibits an FCS institution from: (1) separately selling surface (mineral) rights on land acquired by foreclosure; or (2) selling certain land previously securing a loan for less than can be received from the Corporation.

Title IV: Implementation Procedures - Makes titles I through III of this Act effective 30 days after their enactment.

States that the Governor of the FCA shall perform the functions of the Chairman of the Farm Credit Administration Board until his appointment.

Expresses the sense of the Congress that the needs of the U.S. agriculture industry require implementation of this Act as soon as possible.

Title V: National Commission on Agricultural Finance - Directs the President to appoint a National Commission on Agricultural Finance to: (1) conduct a study of methods to ensure adequate agricultural credit; and (2) report to the Congress within one year.

Title VI: Miscellaneous Amendments - Amends the Farm Credit Act of 1971 to require Federal land banks and associations to carry a reserve account.

Subjects Federal intermediate credit banks to the FCA provision regarding dividend payments.