Page:United States Statutes at Large Volume 101 Part 3.djvu/399

 PUBLIC LAW 100-233—JAN. 6, 1988

101 STAT. 1697

loans for small farms and family farmers in pools of qualified loans. "(4) CONGRESSIONAL REVIEW.—No standard prescribed under this subsection shall take effect before the later of— "(A) the end of a period consisting of 80 legislative days and beginning on the date such standards are submitted to Congress; or "(B) the end of a period consisting of 90 calendar days and beginning on such date. "(d) OTHER RESPONSIBILITIES OF AND LIMITATIONS ON CERTIFIED

FACILITIES.—As a condition for providing any guarantees under this section for securities issued by a certified facility that represent interests in, or obligations backed by, any pool of qualified loans, the Corporation shall require such facility to agree to comply with the following requirements: "(1) LOAN DEFAULT RESOLUTION.—The facility shall act in accordance with the standards of a prudent institutional lender to resolve loan defaults. "(2) SUBROGATION OF UNITED STATES AND CORPORATION TO INTERESTS OF FACILITY.—The proceeds of any collateral, judg-

ments, settlements, or guarantees received by the facility with respect to any loan in such pool, shall be applied, after payment of costs of collection— "(A) first, to reduce the amount of any principal outstanding on any obligation of the Corporation that was purchased by the Secretary of the Treasury under section 8.13 to the extent the proceeds of such obligation were used to make guarantees in connection with such securities; and "(B) second, to reimburse the Corporation for any such guarantee payments. "(3) LOAN SERVICING.—The originator of any loan in such pool shall be permitted to retain the right to service the loan. "(4) LOANS WITH RECOURSE TO ORIGINATOR PROHIBITED.—Each

loan in the pool shall have been sold to the certified facility without recourse to the originator of such loan (other than recourse to any interest of such originator in a reserve established in connection with such loan or any subordinated participation interest of such originator in such loan). "(5) COMPUANCE WITH DIVERSIFIED POOL STANDARDS.—The facility shall comply with the standards adopted by the Board under subsection (c) in establishing and maintaining the pool. "(6) MINORITY PARTICIPATION IN PUBLIC OFFERINGS.—The facility shall take such steps as may be necessary to ensure that minority owned or controlled investment banking firms, underwriters, and bond counsels throughout the United States have an opportunity to participate to a significant degree in any public offering of securities. "(7) No DISCRIMINATION AGAINST STATES WITH BORROWERS RIGHTS.—The facility may not refuse to purchase qualified loans originating in States that have established borrowers rights laws either by statute or under the constitution of such States, except that the facility may require discounts or charge fees reasonably related to costs and expenses arising from such statutes or constitutional provisions. "(e) ADDITIONAL AUTHORITY OF THE BOARD.—To ensure the liquidity of securities for which guarantees have been provided under this section, the Board shall adopt appropriate standards regarding—

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