Page:United States Statutes at Large Volume 101 Part 3.djvu/403

 PUBLIC LAW 100-233—JAN. 6, 1988 "(e) NONDISCRIMINATION

101 STAT. 1701

REQUIREMENT.—The standards estab-

lished under subsection (a) shall not discriminate against small originators or small agricultural mortgage loans that are at least $50,000. "SEC. 8.9. EXEMPTION FROM RESTRUCTURING AND BORROWERS RIGHTS PROVISIONS FOR POOLED LOANS.

12 USC 2279aa-9.

"(a) RESTRUCTURING.—Notwithstanding any other provision of law, sections 4.14, 4.14A, 4.14B, 4.14C, and 4.37 shall not apply to any loan included in a pool of qualified loans backing securities or obligations for which the Corporation provides guarantee. The loan servicing standards established by the Corporation shall be patterned after similar standards adopted by other federally sponsored secondary market facilities. "(b) BORROWERS RIGHTS.—At the time of application for a loan, originators that are Farm Credit System institutions shall give written notice to each applicant of the terms and conditions of the loan, setting forth separately terms and conditions for pooled loans and loans that are not pooled. This notice shall include a statement, if applicable, that the loan may be pooled and that, if pooled, sections 4.14, 4.14A, 4.14B, 4.14C, and 4.37 shall not apply. This notice also shall inform the applicant that he or she has the right not to have the loan pooled. Within 3 days from the time of commitment, an applicant has the right to refuse to allow the loan to be pooled, thereby retaining rights under sections 4.14, 4.14A, 4.14B, 4.14C, and 4.37, if applicable. "SEC. 8 1. FUNDING FOR GUARANTEE; RESERVES OF CORPORATION. .0

"(a) GUARANTEE.—The Corporation shall provide guarantees for securities representing interests in, or obligations backed by, pools of qualified loans through commitments issued by the Corporation providing for guarantees.

12 USC

2279aa-10.

"(b) GUARANTEE FEES.— "(1) INITIAL FEE.—At the time a guarantee is issued by the

Corporation, the Corporation shall assess the certified facility a fee of not more than Vi of 1 percent of the initial principal amount of each pool of qualified loans. "(2) ANNUAL FEES.—Beginning in the second year after the date the guarantee is issued under paragraph (1), the Corporation may, at the end of each year, assess the certified facility an annual fee of not more than ¥2 of 1 percent of the principal amount of the loans then constituting the pool. "(3) DETERMINATION OF AMOUNT.—The Corporation shall establish such fees on the amount of risk incurred by the Corporation in providing the guarantees with respect to which such fee is assessed, as determined by the Corporation. Fees assessed under paragraphs (1) and (2) shall be established on an actuarially sound basis. "(4) ANNUAL REVIEW BY GAO.—The Comptroller General of the United States shall annually review, and submit to the Congress a report regarding, the actuarial soundness and reasonableness of the fees established by the Corporation under this subsection. "(c) CORPORATION REQUIRED.—

RESERVE

AGAINST

GUARANTEES

LOSSES

"(1) IN GENERAL.—So much of the fees assessed under this section as the Board determines to be necessary shall be set

Reports.

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