Page:United States Statutes at Large Volume 101 Part 3.djvu/397

 PUBLIC LAW 100-233—JAN. 6, 1988

101 STAT. 1695

against Farm Credit System and non-Farm Credit System applicants. "(b) CERTIFICATION BY CORPORATION.—Within 60 days after receiving an application for certification under this section, the Corporation shall certify the facility if the facility meets the standards established by the Corporation under subsection (a)(D. "(c) MAXIMUM TIME PERIOD FOR CERTIFICATION.—Any certification by the Corporation of an agricultural mortgage marketing facility shall be effective for a period determined by the Corporation of not to exceed 5 years. "(d) REVOCATION.—

"(1) IN GENERAL.—After notice and an opportunity for a hearing, the Corporation may revoke the certification of an agricultural mortgage marketing facility if the Corporation determines that the facility no longer meets the standards referred to in subsection (a). "(2) EFFECT OF REVOCATION.—Revocation of a certification

shall not affect any pool guarantee that has been issued by the Corporation. "(e) AFFIUATION OF F C S INSTITUTIONS WITH FACILITY.— "(1) ESTABLISHMENT OF AFFIUATE AUTHORIZED.—Notwith-

standing any other provision of this Act, any Farm Credit System institution (other than the Corporation), acting for such institution alone or in conjunction with one or more other such institutions, may establish and operate, as an affiliate, an sigricultural mortgage marketing facility if, within a reasonable time after such establishment, such facility obtains and thereafter retains certification under subsection (b) as a certified facility. "(2)

EXCLUSIVE

AGENCY

AGREEMENT

AUTHORIZED.—Any

number of Farm Credit System institutions (other than the Corporation) may enter into an agreement with any certified facility (including an affiliate established under paragraph (1)) to sell the qualified loans of such institutions exclusively to or through the facility. 12 USC

"SEC. 8.6. GUARANTEE OF QUALIFIED LOANS.

2279aa-6.

"(a) GUARANTEE AUTHORIZED FOR CERTIFIED FACILITIES.—

"(1) IN GENERAL.—Subject to the requirements of this section and on such other terms and conditions as the Corporation shall consider appropriate, the Corporation shall guarantee the timely payment of principal and interest on the securities issued by a certified facility that represents interests in, or obligations backed by, any pool of qusdified loans held by such facility. "(2) INABILITY OF FACILITY TO PAY.—If the facility is unable to make any payment of principal or interest on any security for which a guarantee has been provided by the Corporation under paragraph (1), subject to the provisions of subsection (b) the Corporation shall make such payment as and when due in cash, and on such payment shall be subrogated fully to the rights satisfied by such payment, "(3) POWER OF CORPORATION.—Notwithstanding any

other

provision of law, the Corporation is empowered, in connection with any guarantee under this subsection, whether before or after any default, to provide by contract with the facility for the extinguishment, on default by the facility, of any redemption,

Contracts.

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