Farm Credit Amendments Act of 1985

Summary

Farm Credit Act Amendments 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 lease 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. 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. 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 on 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. 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.

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Documents

2 official files

• Reported to House with amendment(s)

  summary · EN · 6 December 1985

  Open at official source

• Introduced in House

  summary · EN · 20 November 1985

  Open at official source

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