Page:United States Statutes at Large Volume 101 Part 3.djvu/405

 PUBLIC LAW 100-233—JAN. 6, 1988

101 STAT. 1703

statements of the Corporation shall be audited by an independent public accountant. "(d) FCA ASSESSMENTS TO COVER COSTS.—The Farm Credit Administration shall assess the Corporation for the cost to the Administration of any regulatory activities conducted under this section, including the cost of any examination. "SEC. 8.12. SECURITIES IN CREDIT ENHANCED POOLS. "(a) FEDERAL LAWS.— "(1) APPLICABILITY OF CERTAIN FEDERAL SECURITIES LAWS.—For

12 USC

2279aa-12.

purposes of section 3(a)(2) of the Securities Act of 1933, no security representing an interest in a pool of qualified loans for which guarantees have been provided by the Corporation shall be deemed to be a security issued or guaranteed by a person controlled or supervised by, or acting as an instrumentality of, the Government of the United States. No such security shall be deemed to be a 'government security' for purposes of the Securities Exchange Act of 1934 or for purposes of the Investment Company Act of 1940. "(2) No FULL FAITH AND CREDIT OF THE UNITED STATES.—Each

security for which credit enhancement has been provided by the Corporation shall clearly indicate that the security is not an obligation of, and is not guaranteed as to principal or interest by, the Farm Credit Administration, the United States, or any other agency or instrumentality of the United States (other than the Corporation). "(b) STATE SECURITIES LAWS.— "(1) GENERAL EXEMPTION.—Any security or obligation that

has been provided a guarantee by the Corporation shall be exempt from any law of any State with respect to or requiring registration or qualification of securities or real estate to the same extent as any obligation issued by, or guaranteed as to principal and interest by, the United States or any agency or instrumentality of the United States. "(2) STATE OVERRIDE.—The provisions of paragraph (1) shall

not be applicable to any State that, during the 8-year period beginning on the effective date of this title, enacts a law that— "(A) specifically refers to this subsection; and "(B) expressly provides that paragraph (1) shall not apply to the State. "(c) AUTHORIZED INVESTMENTS.—

"(1) IN GENERAL.—Securities representing an interest in, or obligations backed by, pools of qualified loans with respect to which the Corporation has provided a guarantee shall be authorized investments of any person, trust, corporation, partnership, association, business trust, or business entity created pursuant to or existing under the laws of the United States or any State to the same extent that the person, trust, corporation, partnership, association, business trust, or business entity is authorized under any applicable law to purchase, hold, or invest in obligations issued by or guaranteed as to principal and interest by the United States or any agency or instrumentality of the United States. Such securities or obligations may be accepted as security for all fiduciary, trust, and public funds, the investment or deposits of which shall be under the authority and control of the United States or any State or any officers of either.

Business and industry.

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