Page:United States Statutes at Large Volume 110 Part 1.djvu/190

 110 STAT. 166 PUBLIC LAW 104-105—FEB. 10, 1996 received, or reserved by an agricultural lender or a certified facility; or "(2) limits or prohibits a prepayment penalty (either fixed or declining), yiela maintenance, or make-whole payment that may be charged, taken, or received by an agricultural lender or a certified facility in connection with the full or partial payment of the principal amount due on a loan by a borrower in advance of the scheduled date for the payment under the terms of the loan, otherwise known as a prepayment of the loan principal. ". SEC. 113. EXTENSION OF CAPITAL TRANSITION PERIOD. Section 8.32 of the Farm Credit Act of 1971 (12 U.S.C. 2279bb- 1) is amended— (1) in the first sentence of subsection (a), by striking "Not later than the expiration of the 2-year period beginning on December 13, 1991," and inserting "Not sooner than the expiration of the 3-year period beginning on the date of enactment of the Farm Credit System Reform Act of 1996,"; (2) in the first sentence of subsection (b)(2), by striking "5-year" and inserting "8-year"; and (3) in subsection (d)— (A) in the first sentence— (i) by striking "The regulations establishing" and inserting the following: "(1) IN GENERAL.— The regulations establishing"; and (ii) by striking "shall contain" and inserting the following: "shall— "(A) be issued by the Director for public comment in the form of a notice of proposed rulemaking, to be first published after the expiration of the period referred to in subsection (a); and "(B) contain"; and (B) in the second sentence, by striking "The regulations shall" and inserting the following: "(2) SPECIFICITY.— The regulations referred to in paragraph (1) shall". SEC. 114. MINIMUM CAPITAL LEVEL. Section 8.33 of the Farm Credit Act of 1971 (12 U.S.C. 2279bb- 2) is amended to read as follows: " SEC. 8.33. MINIMUM CAPITAL LEVEL. "(a) IN GENERAL.— Except as provided in subsection (b), for purposes of this subtitle, the minimum capital level for the Corporation shall be an amount of core capital equal to the sum of—- "(1) 2.75 percent of the aggregate on-balance sheet assets of the (Ilorporation, as determined in accordance with generally accepted accounting principles; and "(2) 0.75 percent of the aggregate off-balance sheet obligations of the Corporation, which, for the purposes of this subtitle, shall include— "(A) the unpaid principal balance of outstanding securities that are guaranteed by the Corporation and backed by pools of qualified loans; "(B) instruments that are issued or guaranteed by the Corporation and are substantially equivalent to instruments described in subparagraph (A); and

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