Page:United States Statutes at Large Volume 101 Part 3.djvu/357

 PUBLIC LAW 100-233—JAN. 6, 1988

101 STAT. 1655

association or entity under the same terms and conditions that the funds are borrowed from a bank for cooperatives. "(2) Notwithstanding the provisions of section 3.9, the board of directors of a bank for cooperatives may determine that, with respect to a loan to any borrower eligible to borrow from a bank under paragraph (I)(A) that is fully guaranteed by the United States, no stock purchase requirement shall apply, other than the requirement that a borrower eligible to own voting stock shall purchase one share of such stock. "(3) Each association and other entity eligible to borrow from a bank for cooperatives under this subsection, for purposes of section 3.7(a), shall be treated as an eligible cooperative association and a stockholder eligible to borrow from the bank. "(4) Nothing in this subsection shall be construed to adversely affect the eligibility, as it existed on the date of the enactment of this subsection, of cooperatives and other entities for any other credit assistance under Federal law.". SEC. 422. SALES OF INSURANCE BY SYSTEM INSTITUTIONS.

(a) IN GENERAL.—Section 4.29 (12 U.S.C. 2218) is amended— (1) in subsection (a)— (A) by inserting "(D" after the subsection designation; (B) by striking out "of this Act"; (C) by inserting "or borrower from" before "any such bank"; (D) by adding at the end thereof the following new sentence: "A member or borrower shall have the option, without coercion from the bank or association of such member or borrower, to accept or reject such insurance."; and (E) by adding at the end thereof the following new paragraph: "(2) In making insurance available through private insurers, the banks shall approve the programs of more than two insurers for each type of insurance offered in the district. The banks may provide comparative information relating to costs and quality of approved programs and the financial conditions of approved companies. Associations shall offer at least two insurers for each program from among those approved by the Federal intermediate credit banks."; and (2) in paragraph (2) of subsection (b)— (A) by redesignating clauses (i), (ii), and (iii), as subparagraphs (A), (B), and (C), respectively; (B) by striking out "and" in subparagraph (B) as so redesignated; (C) by striking out "and" in subparagraph (C) as so redesignated; and (D) by adding at the end thereof the following new subparagraphs: "(D) the insurance program has been approved by the bank or association from among specific programs made available to it by insurers— "(i) meeting reasonable fin£mcial and quality of service standards; and "(ii) licensed under State law to do business in the State; and

"(E) in making insurance available through approved insurers, the board of directors of the association or bank

State and local governments.

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