Page:United States Statutes at Large Volume 122.djvu/1944

 12 2 STA T . 1 9 21 PUBLIC LA W 11 0– 2 46—J U NE 1 8, 2008 andtel e pho ne f a ci lit y loan s( as applica b le ), as dete rm ined 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) INGE NE RAL . —T he F arm C redit A ct of 197 1 is amended by insertin g after section 7. 6 (1 2U . S .C. 2279b) the follo w ing

‘SEC. 7.7. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN DIS- TRICT ASSOCIATIONS. ‘ ‘(a) EQU AL IZ A T I O NO FL OAN -M A K IN GP O W ER S .— ‘‘(1) IN GENERAL.— ‘‘(A) FE D ERAL LAND B ANK ASSO C IATIONS.—S u b j ect to paragraph (2), any association that owns a Federal land ban k association authori z edasof J anuary 1, 2 0 07, 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 short- and intermediate-term loans under title II in the geographic area described in subsection (b) may make long- term loans and otherwise operate, directly or through a subsidiary association, as a Federal land bank association or Federal land credit association under title I in the geographic area. ‘‘(C) FAR M CREDIT BANK.— N otwithstanding section 5 .17(a), the Farm Credit Bank with which any association had a written financing agreement as of January 1, 2007, may make loans and e x tend other comparable financial assistance with respect to, and may purchase, any loans made under the new authority pro v ided under subpara- graph (A) or (B) by an association exercising such authority. ‘‘(2) R EQUIRED A P PRO V ALS.—An association may exercise the additional authority provided for in paragraph (1) only after the exercise of the authority is approved by— ‘‘(A) the board of directors of the association and ‘‘(B) a majority of the voting stockholders of the associa- tion (or, if the association is a subsidiary of another associa- tion, the voting stockholders of the parent association) voting, in person or by proxy, at a duly authorized meeting of stockholders in accordance with the process described in section 7.11. ‘‘(b) APPLICABILIT Y .—This section applies only to associations the chartered territory of which was within the geographic area served by the Federal intermediate credit bank immediately prior to its merger with a Farm Credit Bank under section 4 10(e)(1) of the Agricultural Credit Act of 19 8 7 (12 U.S.C. 2011 note; Public Law 100 – 2 3 3).’’. (b) C H ARTER AMENDMENTS.—Section 5.17(a) of the Farm Credit Act of 1971 (12 U.S.C. 2252(a)) is amended by adding at the end the following: ‘‘(15)(A) Approve amendments to the charters of institutions of the Farm Credit System to implement the e q ualization of 12USC 22 79c.

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