Page:United States Statutes at Large Volume 101 Part 1.djvu/686

 101 STAT. 656

PUBLIC LAW 100-86—AUG. 10, 1987

SEC. 716. ASSETS WHICH MAY BE PLEDGED.

State and local governments. Indians.

(a) IN GENERAL.—Section 121 of the Federal Credit Union Act (12 U.S.C. 1767) is amended by adding at the end thereof the following new subsection: "(b) Any Federal credit union, upon the deposit with it of any funds by the Federal Government, an Indian tribe, or any State or local government or political subdivision thereof as otherwise authorized by this Act, is authorized to pledge any of its assets securing the payment of the funds so deposited.". (b) CONFORMING AMENDMENT.—Section 121 of the Federal Credit

Union Act (12 U.S.C. 1767) is amended by striking out "Each" in the first sentence and inserting in lieu thereof "(a) Each".

TITLE VIII—LOAN LOSS AMORTIZATION SEC. 801. LOAN LOSS AMORTIZATION FOR AGRICULTURAL BANKS.

Ante, p. 623.

Section 13 of the Federal Deposit Insurance Act (12 U.S.C. 1823) is amended by adding at the end thereof the following: "(j) LOAN LOSS AMORTIZATION FOR CERTAIN BANKS.—

Fraud.

Real property.

"(1) ELIGIBILITY.—The appropriate Federal banking agency shall permit an agricultural bank to take the actions referred to in paragraph (2) if it finds that— "(A) there is no evidence that fraud or criminal abuse on the part of the bank led to the losses referred to in para-mi graph (2); and ' • "(B) the agricultural bank has a plan to restore its capital, not later than the close of the amortization period established under paragraph (2), to a level prescribed by the appropriate Federal banking agency. "(2) SEVEN-YEAR LOSS AMORTIZATION.—(A) Any loss on any qualified agricultural loan that an agricultural bank would otherwise be required to show on its annual financial statement for any year between December 31, 1983, and January 1, 1992, may be amortized on its financial statements over a period of -' not to exceed 7 years, as provided in regulations issued by the appropriate Federal banking agency. "(B) An agricultural bank may reappraise any real estate or other property, real or personal, that it acquired coincident to ' the making of a qualified agricultural loan and that it owned on January 1, 1983, and any such additional property that it acquires prior to January 1, 1992. Any loss that such bank would otherwise be required to show on its annual financial statements as the result of any such reappraisal may be amortized on its financial statements over a period of not to exceed 7 ' years, as provided in regulations issued by the appropriate Federal banking agency. "(3) REGULATIONS.—Not later than 90 days after the date of enactment of this subsection, the appropriate Federal banking agency shall issue regulations implementing this subsection with respect to banks that it supervises, including regulations implementing the capital restoration requirement of paragraph (1)(B). "(4) DEFINITIONS.—As used in this subsection— "(A) the term 'agricultural bank'means a bank—

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