Page:United States Statutes at Large Volume 106 Part 5.djvu/491

 PUBLIC LAW 102-552—OCT. 28, 1992 106 STAT. 4129 like authority, whether directly or indirectly as an agent of a Farm Credit Bank, except with the approval of— "(i) in a case affecting only the charter of one or more associations— "(I) a msgority of the shareholders (present and voting or voting by proxy) of each of the associations that would have like lending authority (whether directly or indirectly as an agent of a Farm Credit Bank) in any of that territory if the charter action were taken; and "(11) a mcgority of the board of directors of the Farm Credit Bank with which the affected associations are affiliated; or "(ii) in a case affecting the charter of one or more banks— "(I) a mcgority of the shareholders (present and voting or voting by proxy) of the affiliated associations of each of the bai^ tiiat would have like lending authority in any of that territory if the charter action were taken; "(11) a msgority of the shareholders (present and voting or voting by proxy) of each of the bcuiks that would have like lending authority in any of that territory if the charter action were taken; and "(III) a mcgority vote of the boards of directors of each of the banks that woiild have like lending authority in any of that territory if the charter action were taken. "(C) Subparagraph (B) shall apply only in those geographic areas where, due to the failure of a Federal intermediate credit bank to merge in accordance with section 41(Ka) of the Agricultural Credit Act of 1987 (12 U.S.C. 2011 note), the Federal intermediate credit bank or its successor is chartered to provide short- and intermediate-term credit, and a neighboring Farm Credit Bank that is not the successor to the Federal intermediate credit bank is chartered to provide long-term credit, in the same geographic territory.". TITLE V—MISCELLANEOUS SEC. 501. VALUATION RESERVES OF PRODUCTION CREDIT ASSOCIA- TIONS. Subsection (b) of section 2.3 (12 U.S.C. 2074(b)) is amended to read as follows: "(b) APPLICATION OP EARNINGS.— At the end of each fiscal year, each production credit association shall apply the amount of t^e earnings of the association for the fiscal year in excess of the operating expenses of the association (inclucung provision for valuation reserves agsdnst loan assets in accordance with generally accepted accounting principles)— "(1) first, to the restoration of the impairment (if any) of capital; and (2) second, to the establishment and maintenance of the surplus accounts, the minimum aggregate amount of which shall be prescribed by the Farm Credit Bank.".

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