Farm Credit Soundness, Stability and Private Ownership Restoration Act of 1985

Summary

Farm Credit Soundness, Stability and Private Ownership Restoration Act of 1985 - Title I: Establishment of the Federal Farm Credit Insurance Corporation and Sunset of the Farm Credit Administration - Amends the Farm Credit Act of 1971 to establish a Federal Farm Credit Insurance Corporation (FFCIC) to regulate the Farm Credit System (System). Provides for a three-member Board of Directors appointed by the President with the advice and consent of the Senate. Sets forth the general powers of the FFCIC, including: (1) approval of issuances of obligations by System institutions; (2) review of System mergers, divisions, or consolidations; and (3) System audits and examinations, including publication of financial statements prepared under generally accepted accounting principles. Directs the FFCIC to provide loans, grants, or guarantees to System institutions faced with illiquidity or impairment of capital. Authorizes the FFCIC to prescribe related rules concerning the institutions' use of disbursed funds. Provides initial FFCIC funds through a one-time assessment of primary lenders (based on outstanding loans) in return for nonvoting stock. Authorizes a special assessment or rebates if such fund falls below or exceeds specified levels. Grants the FFCIC cease and desist and removal and suspension authorities. Provides for the sunset of specified Farm Credit Administration functions 90 days after enactment of this Act. Transfers the Federal Farm Credit Board from the Farm Credit Administration to the FFCIC. Makes its principal function an advisory one. Title II: Representative Boards of Directors - Provides that each System bank shall have its own shareholder-elected five-member board of directors. Reduces from seven to five the size of the Farm Credit District Boards and makes their principal function an advisory one. Title III: Farm Credit System Self-Help Powers - Authorizes Federal land banks, as an alternative to foreclosure, and with the consent of the defaulting farmer, to enter into lease-back arrangements with the original owner or another operator. Authorizes the FFCIC to collectively lower the capital requirements of System institutions to not less than one-half of one percent more than the capital requirements applicable to national banks. Title IV: Preservation of the Independence and Separate Identities of Farm Credit System Institutions - Prohibits the merger of banks and associations operating under different titles of such Act. Repeals specified provisions regarding service corporations. Limits the FFCIC's charter powers to Federal land banks and associations, Federal intermediate credit banks, production credit associations, banks for cooperatives, or the Central Bank for Cooperatives. Liquidates all such service corporations, except the Federal Farm Credit Banks Funding Corporation, within 90 days of enactment of this Act. Requires such Corporation to make operating reports to the President and the Congress by April 1 of each year. Title V: Conforming Amendments - Makes conforming amendments to such Act.

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1 official file

• Introduced in Senate

  summary · EN · 25 October 1985

  Open at official source

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