Page:United States Statutes at Large Volume 94 Part 3.djvu/803

 PUBLIC LAW 96-592—DEC. 24, 1980

94 STAT. 3447

ing the operations and achievements in their district under such programs, "SEC. 4.20. TERMINATION OF PROVISIONS.—The provisions of (1) ^2 USC 2208. section 2.3 authorizing the Federal intermediate credit banks to lend ^"^«' P 3440. to or discount paper for other financial institutions, and (2) section 3.70t>) authorizing the financing of certain domestic or foreign entities Ante, p. 3444. in connection with the import or export activities of cooperatives which are borrowers from the banks for cooperatives, shall expire on September 30, 1990, unless extended by Act of Congress prior to that date. Any contract or agreement entered into under the authority of either provision prior to its expiration shall remain in full force and effect notwithstanding such expiration.". SEC. 404. Title IV of the Farm Credit Act of 1971 is amended by adding at the end thereof new parts D and E as follows: "PART D—SERVICE ORGANIZATIONS

"SEC. 4.25. ESTABLISHMENT.—Any bank of the Farm Credit System, 12 USC 2211. or two or more of such banks acting together, may organize a corporation or corporations for the purpose of performing functions and services for or on behalf of the organizing bank or banks that the bank or banks may perform pursuant to this Act: Provided, That a corporation so organized shall have no authority either to extend credit or provide insurance services for borrowers from Farm Credit System institutions, nor shall it have any greater authority with respect to functions and services than the organizing bank or banks possess under this Act. The organizing bank or banks shall apply for a Federal charter for the corporation by forwarding to the Governor of the Farm Credit Administration a statement of the need for the corporation and proposed articles specifying in general terms the objectives for which the corporation is formed, the powers to be exercised by it in carrying out the functions and services, and the territory it is to serve. The Governor for good cause may deny the charter applied for. Upon the approval of articles by the Governor and the issuance of a charter, the corporation shall become as of such date a federally chartered body corporate and an instriunentality of the United States. "SEC. 4.26. POWERS OP THE GOVERNOR.—The Governor shall have 12 USC 2212. power, under rules and regulations prescribed by the Governor or by prescribing in the terms of the charter or by approval of the bylaws of the corporation, to provide for the organization of any corporation chartered under this part and the territory within which its operations may be carried on, and to direct at any time such changes in its charter as he finds necessary for the accomplishment of the purposes of this Act. The powers of the Governor to provide for the organization of any corporation chartered under this part include, but are not limited to approval of— "(1) corporate title; "(2) general corporate powers; "(3) eligibility for membership on, and the powers, composition, selection, terms, and compensation of the board of directors; "(4) classes, issuance, value, and retirement of stock; "(5) sources of operating funds; "(6) dissolution, liquidation, and distribution of assets on liquidation; and (7) application and distribution of earnings. "SEC. 4.27. SUPERVISION AND EXAMINATION.—The corporations 12 USC 2213. organized under this part shall be institutions of the Farm Credit

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