Page:United States Statutes at Large Volume 101 Part 3.djvu/328

 101 STAT. 1626

PUBLIC LAW 100-233—JAN. 6, 1988

and shall be secured by collateral, if any, as may be reK,>,,-,; quired in such regulations. "(B) REQUIREMENT OF REGULATIONS.—The

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. 12 USC 2016.

regulations

shall assure that such loans, financial assistance, discounts, and purchases are available on a reasonable basis to any financing institution authorized to receive such services under paragraph (I)(B) of this subsection, and that— "(i) is significantly involved in lending for agricultural or aquatic purposes; "(ii) demonstrates a continuing need for supplementary sources of funds to meet the credit requirements of its agricultural or aquatic borrowers; "(iii) has limited access to national or regional capital markets; and "(iv) does not use such services to expand its financing activities to persons and for purposes other than those authorized under title IL "(C) FEES.—The regulations may authorize a Farm Credit Bank to charge reasonable fees for any commitment to extend service under this section to such a financing "(D) SUBSIDIARIES AND AFFIUATES.—For purposes of this subsection, a financing institution together with the subsidiaries and affiliates of such may be considered as one, but such determination to consider such institution together with the subsidiaries and affiliates of such as one shall be made in the first instance by the bank and in the event of a denial by the bank of its services to a financial institution, then by the Farm Credit Administration on a case-by-case basis with due regard to the total relationship of the financing institution, its subsidiaries, and affiliates. "(5) EFFECTIVE DATE.—Nothing in this section shall require termination of discount relationships in existence on the effective date of the Farm Credit Act Amendments of 1980.
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"SEC. 1.8. INTEREST RATES AND OTHER CHARGES.

"(a) IN GENERAL.—Loans and discounts made by a Farm Credit Bank shall bear interest at a rate or rates, and on such terms and conditions, as may be determined by the board of directors of the bank from time to time. "(b) SETTING RATES AND CHARGES.—In setting rates and charges, it shall be the objective to provide the types of credit needed by eligible borrowers at the lowest reasonable costs on a sound business basis taking into consideration the cost of money to the bank, necessary reserve and expenses of the bank and associations, and providing services to members. The loan documents or discounting and financing agreements, may provide for the interest rate or rates to vary from time to time during the repa3mient period of the loan or agreement. 12 USC 2017.

"SEC. 1.9. ELIGIBILITY.

"The credit and financial services authorized in this title may be made available to persons who are or become stockholders or members of the bank or associations in the district, and who are— "(1) bona fide farmers, ranchers, or producers or harvesters of aquatic products; ,.^ ,.,.^., ^ -

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