Page:United States Statutes at Large Volume 101 Part 3.djvu/409

 PUBLIC LAW 100-233—JAN. 6, 1988

101 STAT. 1707

"(23) Operate as an originator and to become certified as a certified facility under title VIIL". (b) FEDERAL LAND BANK ASSOCIATIONS.—Section 1.15 (12 U.S.C. 2033) is amended by adding at the end thereof the following new paragraph: "(22) Operate as an originator and to become certified as a certified facility under title VIIL". (c) FEDERAL INTERMEDIATE CREDIT BANKS.—Section 2.1 (12 U.S.C. 2072) is amended by adding at the end thereof the following new paragraph: "(21) Operate as an originator and to become certified as a certified facility under title VIIL". (d) PRODUCTION CREDIT ASSOCIATIONS.—Section 2.12 (12 U.S.C.

2093) is amended by adding at the end thereof the following new paragraph: "(21) Operate as an originator and to become certified as a certified facility under title VIIL".

Subtitle B—Farmers Home Administration Loans SEC. 711. IMPROVEMENT OF SECONDARY MARKET OPERATIONS FOR LOANS GUARANTEED BY THE FARMERS HOME ADMINISTRATION.

(a) IN GENERAL.—Section 338 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1988) is amended by adding at the end thereof the following: "(f)(l)(A) The guaranteed portion of any loan made under this title may be sold by the lender, and by any subsequent holder, in accordance with regulations governing such sales as the Secretary shall establish, subject to the following limitations: "(i) All fees due the Secretary with respect to a guaranteed loan are to be paid in full before any sale. "(ii) The loan is to have been fully disbursed to the borrower before the sale. "(B) After a loan is sold in the secondary market, the lender shall Contracts. remain obligated under its guarantee agreement with the Secretary, and shall continue to service the loan in accordance with the terms and conditions of such agreement. "(C) The Secretary shall develop such procedures as are necessary for the facilitation, administration, and promotion of secondary market operations, and for determining the increase of farmers' access to capital at reasonable rates and terms as a result of secondary market operations. "(D) This subsection shall not be interpreted to impede or extinguish the right of the borrower or the successor in interest to such borrower to prepay (in whole or in part) any loan made under this title, or to impede or extinguish the rights of any party under any provision of this title. "(2)(A) The Secretary may, directly or through a market maker approved by the Secretary, issue pool certificates representing ownership of part or all of the guaranteed portion of any loan guaranteed by the Secretary under this title. Such certificates shall be based on and backed by a pool established or approved by the

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