Farm Credit Amendments Act of 1985

Summary

Farm Credit System Restructuring and Regulatory Reform Act of 1985 - Title I: Purposes, Organization, and Powers - Amends the Farm Credit Act of 1971 to vest management of the Farm Credit Administration (FCA) in a Farm Credit Administration Board (replacing the Federal Farm Credit Board), to be headed by a Chairman. Sets forth related operating and administrative provisions. Establishes a Farm Credit Advisory Committee. Requires: (1) FCA examinations of Farm Credit System (FCS) institutions; and (2) each institution to make an annual report. Authorizes the FCA to publish reports of such examinations under specified circumstances. Title II: Regulatory Role of the Farm Credit Administration - Amends the Farm Credit Act to remove certain regulatory powers of the FCA regarding the establishment and regulation of Federal banks. Grants the FCA authority to establish minimum levels of capital for FCS institutions and see that such levels are maintained. Sets forth requirements for voluntary single district-wide association mergers. Allows the Chairman of the FCA to require bank mergers where such banks have failed to meet their outstanding obligations. Grants the Chairman the power to appoint a conservator or receiver for any institution of the FCS. Lists the grounds for such an appointment. Title III: Enforcement Powers and Procedures of the Farm Credit Administration - Amends the Farm Credit Act of 1971 to authorize the Farm Credit Administration (FCA) to issue cease and desist orders against any Farm Credit System institution or director, officer, employee, or agent engaged in an unsafe or unsound practice or in violation of any FCA rule or regulation. Provides for written notice and hearing opportunity. Authorizes the FCA to issue temporary cease and desist orders. Permits U.S. district court appeal. Permits FCA appeal to such court for injunctive enforcement. Authorizes the FCA to remove or suspend any Farm Credit System director or officer who has engaged in unsafe or prohibited practices, is in breach of fiduciary duty, or has been indicted for a felony involving dishonesty or breach of trust. Provides for written notice and hearing opportunity. Establishes procedures for administrative hearings and judicial review. Authorizes the FCA to apply to any U.S. district court with jurisdiction for the enforcement of any outstanding notice or order. Provides for civil penalties of up to $1,000 for violations of final orders or of the provisions of the Farm Credit Act of 1971 or regulations. Makes directors and officers who knowingly violate, or permit others to violate, such Act or regulations personally liable for damages. Title IV: Farm Credit System Capital Corporation - Establishes the Federal Farm Credit System Capital Corporation to ensure the continued viability of the FCS. Describes the powers of the Capital Corporation. States that the Capital Corporation shall have the power to acquire property, debts, and assets of institutions of the FCS. Provides initial capitalization through institution contributions. States that the capital, reserves, surplus, and income derived therefrom shall be tax exempt. Title V: Rights of Applicants and Shareholders - Amends the Farm Credit Act to direct the FCA to promulgate regulations regarding: (1) the disclosure of certain interest rate information to borrowers; (2) access to documents and information for applicants, borrowers, and stockholders; and (3) the establishment of credit review committees. Title VI: Miscellaneous Amendments - Amends the Federal Financial Institutions Examination Council Act of 1978 to provide that the Chairman of the FCA shall serve as a nonvoting member of the Council. Requires Federal land banks and associations to carry a reserve account. Subjects Federal intermediate credit banks to the direction of the FCA with regard to dividend payments. Requires Federal land banks, Federal intermediate credit banks, banks for cooperatives, Federal land bank associations, and production credit associations to purchase stock, pay assessments, and make capital contributions to the Capital Corporation. Title VII: Authorization for Borrowing - Authorizes the Secretary of the Treasury to purchase obligations issued by the Capital Corporation.

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Documents

3 official files

• Public Law (PDF)

  Public Law · EN · 24 December 1985

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• Senate agreed to House amendment with amendment

  summary · EN · 17 December 1985

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• Introduced in Senate

  summary · EN · 23 November 1985

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