Page:United States Statutes at Large Volume 122.djvu/1182

 12 2 STA T . 11 59PUBLIC LA W 11 0– 2 34—M A Y 22, 200 8(A)bystrik i ng t hef irst senten c e a n d inserting the f ol lo w ing

‘( 1 ) INGE NE RAL.—T he C or p oration shall establish u nder - writing , security appraisal, and repay m ent standards for q uali- fied loans taking into account the nature, risk profile, and other differences between different categories of qualified loans. ‘‘( 2 ) SUP ER VIS I O N,E X A M INA T ION, AN D REPORT O FC ONDI- TION.—The standards shall be sub j ect to the authorities of the F arm Credit Administration under section 8 .11. ’ ’ and ( B ) in the last sentence, by striking ‘‘In establishing’’ and inserting the following: ‘‘( 3 ) M ORTGAGE LOANS.—In establishing’’; (2) in subsection (b)— (A) in the matter preceding paragraph (1), by inserting ‘‘with respect to loans secured by agricultural real estate’’ after ‘‘subsection (a)’’; and (B) in paragraph ( 5 )— (i) by striking ‘‘borrower’’ the first place it appears and inserting ‘‘farmer or rancher’’; and (ii) by striking ‘‘site’’ and inserting ‘‘farm or ranch’’; (3) in subsection (c)(1), by inserting ‘‘secured by agricultural real estate’’ after ‘‘A loan’’; ( 4 ) by striking subsection (d); and (5) by redesignating subsection (e) as subsection (d). (d) R IS K -BASED CAPITAL L EVELS.—Section 8.32(a)(1) of such Act (12 U .S.C. 22 79 bb – 1(a)(1)) is amended— (1) by striking ‘‘ W ith respect’’ and inserting the following: ‘‘(A) IN GENERAL.—With respect’’; and (2) by adding at the end the following: ‘‘(B) RURAL UTILIT Y LOANS.—With respect to securities representing an interest in, or obligation backed by, a pool of qualified loans described in section 8. 0 (9)(C) owned or guaranteed by the Corporation, losses occur at a rate of default and se v erity reasonably related to risks in electric and telephone facility loans (as applicable), as determined by the D irector.’’. SEC.5407 .E QUALIZ A T I ON O F LOAN -M A K IN GP O W E R S OF CERTAIN D IS- TRICT ASSOCIATIONS. (a) IN G ENERAL.—The Farm Credit Act of 1971 is amended by inserting after section 7. 6 (12 U.S.C. 2279b) the following: ‘ ‘SEC. 7.7. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN DIS- TRICT ASSOCIATIONS. ‘‘(a) EQ UALI Z ATION OF LOAN-MAKING P O W ERS.— ‘‘(1) IN GENERAL.— ‘‘(A) FEDERAL LAND B ANK ASSOCIATIONS.—Subject to paragraph (2), any association that owns a Federal land bank association authori z edasof J anuary 1, 2007, to make long-term loans under title I in its chartered territory within the geographic area described in subsection (b) may make short- and intermediate-term loans and otherwise operate as a production credit association under title II within that same chartered territory. ‘‘(B) PRODUCTION CREDIT ASSOCIATIONS.—Subject to paragraph (2), any association that under its charter has title I lending authority and that owns a production credit association authorized as of January 1, 2007, to make 12USC 22 79c.

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