
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 12USC2252]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
          SUBCHAPTER V--FARM CREDIT ADMINISTRATION ORGANIZATION
 
             Part B--Farm Credit Administration Organization
 
Sec. 2252. Powers and duties


(a) Enumerated powers

    The Farm Credit Administration shall have the following powers, 
functions, and responsibilities in connection with the institutions of 
the Farm Credit System and the administration of this chapter:
        (1) Modify the boundaries of farm credit districts, with due 
    regard for the farm credit needs of the country, as approved by the 
    Board, with the concurrence of the district banks involved.
        (2)(A) Where necessary or appropriate to carry out the policy 
    and objectives of this chapter, issue and approve amendments to 
    Federal charters of institutions of the System; approve change in 
    names of banks operating under this chapter; approve the merger of 
    districts when agreed to by the district bank boards involved and by 
    a majority vote of the voting stockholders and contributors to the 
    guaranty funds of each bank for each of such districts, voting in 
    the same manner as is provided in section 2279a of this title; 
    approve mergers and any related activities as provided for in 
    subchapter VII of this chapter; and approve the consolidation or 
    division of the territories of institutions when agreed to by a 
    majority vote of the voting stockholders or contributors to the 
    guaranty fund of each of the institutions involved; and approve 
    consolidations of boards of directors when agreed to by a majority 
    vote of the voting stockholders or contributors to the guaranty fund 
    of each of the institutions involved. In issuing charters and 
    certificates of territory for district-wide mergers of associations 
    where stockholders of one or more associations did not approve the 
    merger, the charter of the new or merged association shall not 
    include the territory of the disagreeing association or 
    associations; charters issued during calendar year 1985 for 
    district-wide new or merged associations which included the 
    territory of a disagreeing association shall be revoked and reissued 
    to exclude such territory, unless subsequently agreed to by the 
    board of directors of such association or associations. The Farm 
    Credit Administration Board shall ensure that disapproving 
    associations (A) shall not be charged any assessment under this 
    chapter at a rate higher than that charged other like associations 
    in the district, and (B) shall be provided with financial services 
    and assistance on the same basis as other like associations in the 
    district (including, but not limited to, access to credit and rates 
    of interest on loans and discounts) by a district Farm Credit bank 
    to the association and its member-borrowers. The Farm Credit 
    Administration Board, after consultation with the respective boards 
    of directors of the affected banks, may require two or more banks 
    operating under the same or different titles to merge if the Board 
    determines that one of such banks has failed to meet its outstanding 
    obligations.
        (B) The Farm Credit Administration shall not issue a charter to, 
    or approve an amendment to the charter of, any institution of the 
    Farm Credit System to operate under subchapter I or II of this 
    chapter that would authorize the institution to exercise lending 
    authority, whether directly or indirectly as an agent of a Farm 
    Credit Bank, in a territory in which the charter of another such 
    institution authorizes the other institution to exercise like 
    authority, whether directly or indirectly as an agent of a Farm 
    Credit Bank, except with the approval of--
            (i) in a case affecting only the charter of one or more 
        associations--
                (I) a majority of the shareholders (present and voting 
            or voting by proxy) of each of the associations that would 
            have like lending authority (whether directly or indirectly 
            as an agent of a Farm Credit Bank) in any of that territory 
            if the charter action were taken; and
                (II) a majority of the board of directors of the Farm 
            Credit Bank with which the affected associations are 
            affiliated; or

            (ii) in a case affecting the charter of one or more banks--
                (I) a majority of the shareholders (present and voting 
            or voting by proxy) of the affiliated associations of each 
            of the banks that would have like lending authority in any 
            of that territory if the charter action were taken;
                (II) a majority of the shareholders (present and voting 
            or voting by proxy) of each of the banks that would have 
            like lending authority in any of that territory if the 
            charter action were taken; and
                (III) a majority vote of the boards of directors of each 
            of the banks that would have like lending authority in any 
            of that territory if the charter action were taken.

        (C) Subparagraph (B) shall apply only in those geographic areas 
    where, due to the failure of a Federal intermediate credit bank to 
    merge in accordance with section 410(a) of the Agricultural Credit 
    Act of 1987 (12 U.S.C. 2011 note), the Federal intermediate credit 
    bank or its successor is chartered to provide short- and 
    intermediate-term credit, and a neighboring Farm Credit Bank that is 
    not the successor to the Federal intermediate credit bank is 
    chartered to provide long-term credit, in the same geographic 
    territory.
        (3) Make annual reports directly to Congress on the condition of 
    the System and its institutions, based on the examinations carried 
    out under section 2254 of this title, and on the manner and extent 
    to which the purposes and objectives of this chapter are being 
    carried out and, from time to time, recommend directly legislative 
    changes. The annual reports shall include a summary and analysis of 
    the reports submitted to the Farm Credit Administration by the Farm 
    Credit Banks under section 2207(b) of this title relating to 
    programs for serving young, beginning, and small farmers and 
    ranchers.
        (4) Approve the issuance of obligations of the System under 
    subsections (c) and (d) of section 2153 of this title for the 
    purpose of funding the authorized operations of the institutions of 
    the System, and prescribe collateral therefor.
        (5) Grant approvals provided for under this chapter either on a 
    case-by-case basis or through regulations that confer approval on 
    actions of Farm Credit System institutions.
        (6) Establish standards for the System institutions with respect 
    to loan security requirements and regulate the borrowing, repayment, 
    and transfer of funds and equities between institutions of the 
    System.
        (7) Conduct loan and collateral security review.
        (8) Regulate the preparation by System institutions and the 
    dissemination to stockholders and investors of information on the 
    financial condition and operations of such institutions, except that 
    the requirements of the Farm Credit Administration governing the 
    dissemination to stockholders of quarterly reports of System 
    institutions may not be more burdensome or costly than the 
    requirements applicable to national banks, and the Farm Credit 
    Administration may not require any System institution to disclose in 
    any report to stockholders information concerning the condition or 
    classification of a loan--
            (A) to a director of the institution--
                (i) who has resigned before the time for filing the 
            applicable report with the Farm Credit Administration; or
                (ii) whose term of office will expire no later than the 
            date of the meeting of stockholders to which the report 
            relates; or

            (B) to a member of the immediate family of a director of the 
        institution unless--
                (i) the family member resides in the same household as 
            the director; or
                (ii) the director has a material financial or legal 
            interest in the loan or business operation of the family 
            member.

        (9) Prescribe rules and regulations necessary or appropriate for 
    carrying out this chapter.
        (10) Exercise the powers conferred on it under part C of this 
    subchapter for the purpose of ensuring the safety and soundness of 
    System institutions.
        (11) Exercise such incidental powers as may be necessary or 
    appropriate to fulfill its duties and carry out the purposes of this 
    chapter.
        (12) Require surety bonds or other provisions for protection of 
    the assets of the institutions of the System against losses 
    occasioned by employees.
        (13)(A) Subject to subparagraph (B), the Farm Credit 
    Administration may approve an amendment to the charter of any 
    institution of the Farm Credit System operating under subchapter I 
    or II of this chapter, which would authorize the institution to 
    exercise lending authority in any territory--
            (i) in the geographic area served by an association that was 
        reassigned pursuant to section 433 of the Agricultural Credit 
        Act of 1987 (12 U.S.C. 2071 note) (where the geographic area was 
        a part of the association's territory as of the date of the 
        reassignment); and
            (ii) in which the charter of an institution that is not 
        seeking the charter amendment authorizes the institution to 
        exercise the type of lending authority that is the subject of 
        the charter request.

        (B) The Farm Credit Administration may approve a charter 
    amendment under subparagraph (A) only on the approval of--
            (i) the respective boards of directors of the associations 
        that, if the charter request is approved, would exercise like 
        lending authority in any of the territory that is the subject of 
        the charter request;
            (ii) a majority of the stockholders of each association 
        described in clause (i) voting, in person or by proxy, at a duly 
        authorized stockholders' meeting; and
            (iii) the respective boards of directors of the Farm Credit 
        Banks that, if the charter request is approved, would exercise, 
        either directly or through associations, like lending authority 
        in any of the territory described in subparagraph (A)(i).

        (14)(A) Subject to subparagraph (B), the Farm Credit 
    Administration may approve a request to charter an association of 
    the Farm Credit System to operate under subchapter II of this 
    chapter where the proposed charter--
            (i) will include any of the geographic area included in the 
        territory served by an association that was reassigned pursuant 
        to section 433 of the Agricultural Credit Act of 1987 (12 U.S.C. 
        2071 note) (where the geographic area was a part of the 
        association's territory as of the date of the reassignment); and
            (ii) will authorize the association to exercise lending 
        authority in any territory in the geographic area in which the 
        charter of an association that is not requesting the charter 
        authorizes the association to exercise the type of lending 
        authority that is the subject of the charter request.

        (B) The Farm Credit Administration may approve a charter request 
    under subparagraph (A) only on the approval of--
            (i) the respective boards of directors of the associations 
        that, if the charter request is approved, would exercise like 
        lending authority in any of the territory that is the subject of 
        the charter request;
            (ii) a majority vote of the stockholders (if any) of each 
        association described in clause (i) voting, in person or by 
        proxy, at a duly authorized stockholder's meeting; and
            (iii) the respective boards of directors of the Farm Credit 
        Banks that, if the charter request is approved, would exercise, 
        either directly or through associations, like lending authority 
        in any of the territory described in subparagraph (A)(i).

(b) Exclusions

    The Farm Credit Administration shall not have authority, either 
direct or indirect, to approve bylaws, or any amendments or 
modifications or changes to bylaws, of System institutions.

(c) Proposed and final regulations; procedures applicable

    (1) At least thirty days prior to publishing any proposed regulation 
in the Federal Register, the Farm Credit Administration shall transmit a 
copy of the regulation to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate. The Farm Credit Administration shall also 
transmit to such committees a copy of any final regulation prior to its 
publication in the Federal Register. Except as provided in paragraph (2) 
of this subsection, no final regulation of the Farm Credit 
Administration shall become effective prior to the expiration of thirty 
calendar days after it is published in the Federal Register during which 
either or both Houses of the Congress are in session.
    (2) In the case of an emergency, a final regulation of the Farm 
Credit Administration may become effective without regard to the last 
sentence of paragraph (1) of this subsection if the Farm Credit 
Administration notifies in writing the Committee on Agriculture of the 
House of Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate setting forth the reasons why it is necessary 
to make the regulation effective prior to the expiration of the thirty-
day period.

(d) Legislative veto of regulations; procedures applicable

    (1) If there are any unresolved differences between the Farm Credit 
Administration and the Board of Governors of the Federal Reserve System 
as to whether any regulation implementing section 2128(b) of this title 
or the other provisions of subchapter III relating to the authority 
under section 2128(b) of this title conforms to national banking 
policies, objectives and limitations, simultaneously with promulgation 
of any such regulation under this chapter, and simultaneously with 
promulgation of any regulation implementing section 2015(b) of this 
title, the Farm Credit Administration shall transmit a copy thereof to 
the Secretary of the Senate and the Clerk of the House of 
Representatives. Except as provided in paragraph (2), the regulation 
shall not become effective if, within ninety calendar days of continuous 
session of Congress after the date of promulgation, both Houses of 
Congress adopt a concurrent resolution, the matter after the resolving 
clause of which is as follows: ``That Congress disapproves the 
regulations promulgated by the Farm Credit Administration dealing with 
the matter of             , which regulation was transmitted to Congress 
on             '', the blank spaces therein being appropriately filled.
    (2) If at the end of sixty calendar days of continuous session of 
Congress after the date of promulgation of a regulation, no committee of 
either House of Congress has reported or been discharged from further 
consideration of a concurrent resolution disapproving the regulation, 
and neither House has adopted such a resolution, the regulation may go 
into effect immediately. If, within such sixty calendar days, such a 
committee has reported or been discharged from further consideration of 
such a resolution, or either House has adopted such a resolution, the 
regulation may go into effect not sooner than ninety calendar days of 
continuous session of Congress after its promulgation unless disapproved 
as provided in paragraph (1).
    (3) For the purposes of paragraphs (1) and (2) of this subsection--
        (i) continuity of session is broken only by an adjournment of 
    Congress sine die; and
        (ii) the days on which either House is not in session because of 
    an adjournment of more than three days to a day certain are excluded 
    in the computation of sixty and ninety calendar days of continuous 
    session of Congress.

    (4) Congressional inaction on or rejection of a resolution of 
disapproval shall not be deemed an expression of approval of such 
regulation.

(Pub. L. 92-181, title V, Sec. 5.17, formerly Sec. 5.18, Dec. 10, 1971, 
85 Stat. 621; Pub. L. 96-592, title V, Secs. 507, 508, Dec. 24, 1980, 94 
Stat. 3449; renumbered Sec. 5.17 and amended Pub. L. 99-205, title II, 
Sec. 201(7), Dec. 23, 1985, 99 Stat. 1691; Pub. L. 99-509, title I, 
Sec. 1036, Oct. 21, 1986, 100 Stat. 1878; Pub. L. 100-233, title II, 
Sec. 207(a)(2), title IV, Sec. 417, formerly Sec. 414, Sec. 418(d), 
formerly Sec. 415(d), Secs. 424(a), 431(e), title VIII, Secs. 802(v), 
805(z), Jan. 6, 1988, 101 Stat. 1607, 1653, 1656, 1660, 1713, 1717, 
renumbered Secs. 417, 418(d), Pub. L. 100-399, title IV, Sec. 409(a), 
Aug. 17, 1988, 102 Stat. 1003; Pub. L. 100-399, title II, Sec. 205, 
title IV, Sec. 409(e), title IX, Sec. 901(m), (n), Aug. 17, 1988, 102 
Stat. 993, 1003, 1008; Pub. L. 101-624, title XVIII, Sec. 1843(a)(1), 
Nov. 28, 1990, 104 Stat. 3836; Pub. L. 102-237, title V, Sec. 502(h), 
Dec. 13, 1991, 105 Stat. 1869; Pub. L. 102-552, title IV, Sec. 401(c), 
title V, Sec. 511, Oct. 28, 1992, 106 Stat. 4128, 4132; Pub. L. 104-105, 
title II, Secs. 210, 211, Feb. 10, 1996, 110 Stat. 174.)


                            Prior Provisions

    A prior section 5.17 of Pub. L. 92-181 was renumbered section 5.16 
and is classified to section 2251 of this title.


                               Amendments

    1996--Subsec. (a)(2)(A). Pub. L. 104-105, Sec. 210, struck out ``or 
management agreements'' after ``consolidations of boards of directors'' 
in first sentence.
    Subsec. (a)(8). Pub. L. 104-105, Sec. 211, inserted ``the 
requirements of the Farm Credit Administration governing the 
dissemination to stockholders of quarterly reports of System 
institutions may not be more burdensome or costly than the requirements 
applicable to national banks, and'' after ``except that''.
    1992--Subsec. (a)(2). Pub. L. 102-552, Sec. 401(c), designated 
existing provisions as subpar. (A) and added subpars. (B) and (C).
    Subsec. (a)(13), (14). Pub. L. 102-552, Sec. 511, added pars. (13) 
and (14).
    1991--Subsec. (a)(8)(B)(ii). Pub. L. 102-237 struck out second 
period at end.
    1990--Subsec. (a)(13). Pub. L. 101-624 struck out par. (13) which 
read as follows: ``Except for associations, approve the salary scale for 
employees of the institutions of the System, and approve the 
compensation of the chief executive officer of such institutions: 
Provided, That no salary scale or rate of compensation shall be approved 
under this provision unless determined by the Board to be fair and 
reasonable. The Board may not delegate its responsibilities under this 
paragraph.''
    1988--Subsec. (a)(1). Pub. L. 100-399, Sec. 901(m)(1), substituted 
``district banks'' for ``district boards''.
    Subsec. (a)(2). Pub. L. 100-399, Sec. 901(m)(2), substituted 
``district bank boards'' for ``boards of the districts''.
    Pub. L. 100-399, Sec. 409(e), substituted ``approve the 
consolidation or division of the territories of institutions when agreed 
to'' for ``the consolidation or division of the territories that they 
serve when agreed to''.
    Pub. L. 100-233, Sec. 802(v)(1)(A), substituted ``approve amendments 
to'' for ``amend or modify''.
    Pub. L. 100-233, Sec. 415(d), substituted ``section 2279a of this 
title'' for ``section 2181 of this title'' and ``approve mergers and any 
related activities as provided for in subchapter VII of this chapter; 
and'' for ``; approve mergers of banks operating under the same 
subchapter of this chapter, merger of Federal land bank associations, 
merger of production credit associations, and''.
    Pub. L. 100-233, Sec. 414, substituted ``. The Farm Credit 
Administration Board shall ensure that disapproving associations (A) 
shall not be charged any assessment under this chapter at a rate higher 
than that charged other like associations in the district, and (B) shall 
be provided with financial services and assistance on the same basis as 
other like associations in the district'' for ``; and the Farm Credit 
Administration shall ensure that the board of directors of district 
banks does not discriminate against the disapproving associations in 
exercising its supervisory authorities. Such associations shall not be 
(i) charged any assessment under this chapter at a rate higher than that 
charged other like associations in the district or (ii) discriminated 
against in the provision of any financial service and assistance''.
    Pub. L. 100-233, Sec. 431(e)(1), substituted ``The Farm Credit 
Administration Board, after consultation with the respective boards of 
directors of the affected banks, may require two or more banks operating 
under the same or different titles to merge if the Board determines that 
one of such banks has failed to meet its outstanding obligations'' for 
``The Chairman of the Farm Credit Administration Board, after 
consultation with the respective district board or boards and the board 
of directors of the Capital Corporation may require two or more banks of 
the Farm Credit System (other than Central Banks for Cooperatives) 
operating under the same subchapter to merge if the Chairman determines 
that one of such banks has failed to meet outstanding obligations of 
such bank.''
    Subsec. (a)(3). Pub. L. 100-399, Sec. 901(m)(3), substituted ``Farm 
Credit Banks under section 2207(b) of this title'' for ``Federal land 
banks and Federal intermediate credit banks under section 2207(b) of 
this title''.
    Subsec. (a)(5). Pub. L. 100-233, Sec. 802(v)(1)(B), struck out 
``that meet standards and criteria established by the Farm Credit 
Administration, including standards and criteria with respect to (A) 
interest rates on obligations of Farm Credit System institutions, and 
(B) the payment of dividends or patronage refunds by Farm Credit System 
institutions'' after ``Farm Credit institutions''.
    Subsec. (a)(8). Pub. L. 100-399, Sec. 205, redesignated par. (9) as 
(8).
    Pub. L. 100-233, Sec. 207(a)(2), struck out par. (8) which read as 
follows: ``Make investments in stock of the Capital Corporation out of 
the revolving fund referred to in section 2151 of this title, and 
require the retirement of such stock.''
    Subsec. (a)(9). Pub. L. 100-399, Sec. 205, redesignated par. (10) as 
(9). Former par. (9) redesignated (8).
    Pub. L. 100-233, Sec. 424(a), inserted provisions limiting Farm 
Credit Administration from requiring System institutions to disclose in 
reports to stockholders certain information concerning condition or 
classification of loans to certain directors or members of immediate 
family of certain directors.
    Subsec. (a)(10) to (12). Pub. L. 100-399, Sec. 205, redesignated 
pars. (11) to (13) as (10) to (12), respectively. Former par. (10) 
redesignated (9).
    Subsec. (a)(13). Pub. L. 100-399, Sec. 205, redesignated par. (14) 
as (13). Former par. (13) redesignated (12).
    Pub. L. 100-233, Sec. 805(z), redesignated par. (14) as (13), and 
struck out former par. (13) which read as follows: ``Sue and be sued, 
complain and defend in any court of law or equity, State or Federal. All 
suits of a civil nature at common law or in equity to which the Farm 
Credit Administration shall be a party shall be deemed to arise under 
the laws of the United States, and the United States district courts 
shall have original jurisdiction thereof, without regard to the amount 
of the controversy; and the Farm Credit Administration may, without bond 
or security, remove any such action, suit, or proceeding from a State 
court to the United States district court for the district or division 
embracing the place where the same is pending by following any procedure 
for removal now or hereafter in effect. Service of process on the Farm 
Credit Administration shall be in accordance with provisions of title 28 
and rules adopted under title 28 for suits in which an agency of the 
United States is a party. The Farm Credit Administration shall designate 
an agent at its principal office to accept service of process.''
    Subsec. (a)(14). Pub. L. 100-399, Sec. 205, redesignated par. (14) 
as (13).
    Pub. L. 100-233, Secs. 431(e)(2), 805(z), redesignated par. (15) as 
(14) and inserted ``by the Board'' and ``The Board may not delegate its 
responsibilities under this paragraph.'' Former subsec. (14) 
redesignated (13).
    Subsec. (a)(15). Pub. L. 100-233, Sec. 805(z), redesignated par. 
(15) as (14).
    Subsecs. (b), (c). Pub. L. 100-233, Sec. 802(v)(2), added subsec. 
(b) and redesignated former subsec. (b) as (c). Former subsec. (c) 
redesignated (d).
    Subsec. (d). Pub. L. 100-233, Sec. 802(v)(2), redesignated subsec. 
(c) as (d).
    Subsec. (d)(1). Pub. L. 100-399, Sec. 901(n)(1), made technical 
amendment to reference to sections 2015(b) and 2128(b) of this title 
involving underlying provisions of original act and requiring no change 
in text.
    Pub. L. 100-399, Sec. 901(n), substituted ``section 2015(b) of this 
title'' for ``section 2074 of this title''.
    1986--Subsec. (a)(5)(A). Pub. L. 99-509 struck out ``and on loans 
made or discounted by such institutions'' after ``Farm Credit System 
institutions''.
    1985--Subsec. (a). Pub. L. 99-205 amended subsec. (a) generally, 
revising and reorganizing the enumerated powers of the Farm Credit 
Administration by substituting pars. (1) to (15) for former pars. (1) to 
(17).
    1980--Pub. L. 96-592 designated existing provisions as subsec. (a), 
in par. (3) inserted provisions relating to summary and analysis of 
reports, and added subsecs. (b) and (c).


                    Effective Date of 1991 Amendment

    Amendment by Pub. L. 102-237 effective as if included in the 
provision of the Food, Agriculture, Conservation, and Trade Act of 1990, 
Pub. L. 101-624, to which the amendment relates, see section 1101(b)(4) 
of Pub. L. 102-237, set out as a note under section 1421 of Title 7, 
Agriculture.


                    Effective Date of 1988 Amendments

    Amendment by sections 205 and 409(a), (e) of Pub. L. 100-399 
effective as if enacted immediately after enactment of Pub. L. 100-233, 
which was approved Jan. 6, 1988, and amendment by section 901(m), (n) of 
Pub. L. 100-399 effective immediately after amendment made by section 
401 of Pub. L. 100-233, which was effective 6 months after Jan. 6, 1988, 
see section 1001 of Pub. L. 100-399, set out as a note under section 
2002 of this title.
    Amendment by section 207(a)(2) of Pub. L. 100-233 effective 15 days 
after Jan. 6, 1988, see section 207(b) of Pub. L. 100-233 set out as an 
Effective Date of Repeal note under section 2152 of this title.


                    Effective Date of 1985 Amendment

    Amendment by Pub. L. 99-205 effective thirty days after Dec. 23, 
1985, see section 401 of Pub. L. 99-205, set out as a note under section 
2001 of this title.


                               Regulations

    Section 424(b) of Pub. L. 100-233 provided that: ``Within 30 days 
after the date of the enactment of this Act [Jan. 6, 1988], the Farm 
Credit Administration shall amend its regulations as necessary to 
implement the amendment made by subsection (a) [amending this 
section].''


                  Termination of Reporting Requirements

    For termination, effective May 15, 2000, of provisions in subsec. 
(a)(3) of this section relating to requirement to make annual reports to 
Congress, see section 3003 of Pub. L. 104-66, as amended, set out as a 
note under section 1113 of Title 31, Money and Finance, and page 166 of 
House Document No. 103-7.


                            Regulatory Review

    Section 212 of Pub. L. 104-105 provided that:
    ``(a) Findings.--Congress finds that--
        ``(1) the Farm Credit Administration, in the role of the 
    Administration as an arms-length safety and soundness regulator, has 
    made considerable progress in reducing the regulatory burden on Farm 
    Credit System institutions;
        ``(2) the efforts of the Farm Credit Administration described in 
    paragraph (1) have resulted in cost savings for Farm Credit System 
    institutions; and
        ``(3) the cost savings described in paragraph (2) ultimately 
    benefit the farmers, ranchers, agricultural cooperatives, and rural 
    residents of the United States.
    ``(b) Continuation of Regulatory Review.--The Farm Credit 
Administration shall continue the comprehensive review of regulations 
governing the Farm Credit System to identify and eliminate, consistent 
with law, safety, and soundness, all regulations that are unnecessary, 
unduly burdensome or costly, or not based on law.''


Forbearance and Restructuring for Farm Loans; Farm Credit Administration

    Pub. L. 100-387, title III, Sec. 313(b), Aug. 11, 1988, 102 Stat. 
950, provided that: ``It further is the sense of Congress that the Farm 
Credit Administration should in its oversight of Farm Credit System 
institutions, with respect to farmers and ranchers who suffer major 
losses due to drought, hail, excessive moisture, or related condition in 
1988--
        ``(1) ensure that Farm Credit System institutions exercise 
    forbearance in the collection of principal and interest on loans 
    outstanding to such farmers and ranchers;
        ``(2) expedite the use of credit restructuring and other credit 
    relief mechanisms authorized under the Agricultural Credit Act of 
    1987 [Pub. L. 100-233, Jan. 6, 1988, 101 Stat. 1568, see Tables for 
    classification] and related provisions of law for such farmers and 
    ranchers; and
        ``(3) encourage other lenders participating with Farm Credit 
    System institutions in mutual loan agreements to exercise 
    forbearance before declaring loans to such farmers and ranchers in 
    default.''

                  Section Referred to in Other Sections

    This section is referred to in sections 2002, 2275a, 2279aa-11 of 
this title.
