Page:United States Statutes at Large Volume 94 Part 3.djvu/804

 94 STAT. 3448

12 USC 2214.

12 USC 2055, 2079, 2134.

PUBLIC LAW 96-592—DEC. 24, 1980

System and shall be subject to the same supervision and examination by the Farm Credit Administration as are the organizing bank or banks under this Act. "SEC. 4.28. STATE LAWS.—State and other laws shall apply to corporations organized pursuant to this part to the same extent such laws would apply to the organizing banks engaged in the same activity in the same jurisdiction: Provided, however, That to the extent that sections L21, 2.8, and 3.13 of this Act may exempt banks of the Farm Credit System from taxation, such exemptions, other than with respect to franchise taxes, shall not extend to corporations organized pursuant to this part. "PART E—SALE OF INSURANCE

12 USC 2218.

12 USC 2019, 2033, 2076, 2097.

Regulations.

Existing coverage, continuation.

4.29. LINES OF INSURANCE.—(a) The regulations of the Farm Credit Administration governing financially related services that the banks and associations of the Farm Credit System may provide under sections 1.11, 1.15, 2.5, and 2.16 of this Act may authorize the sale to any member of any such bank or association, on an optional basis, of credit or term life and credit disability insurance appropriate to protect the loan commitment in the event of death or disability of the debtors and other insurance necessary to protect the member's farm or aquatic unit, but limited to, hail and multiple-peril crop insurance, title insurance, and insurance to protect the facilities and equipment of aquatic borrowers. "(b) Such regulations shall provide that— "(1) in any case in which insurance is required as a condition for a loan or other financial assistance from a bank or association, notice be given that it is not necessary to purchase the insurance from the bank or association and that the borrower has the option of obtaining the insurance elsewhere; "(2) such insurance services may be offered only if— "(i) the bank or association has the capacity to render insurance service under this Act in an effective and efficient manner; "(ii) there exists the probability that any insurance program under this Act will generate sufficient revenue to cover all costs; and "(iii) rendering insurance service will not have an adverse effect on the bank's or association's credit or other operations; and "(3) no bank or association shall directly or indirectly discriminate in any manner against any agent, broker, or insurer that is not affiliated with such bank or association, or against any party who purchases insurance through any such nonaffiliated insurance agent, broker, or insurer. "(c) Notwithstanding any provision of this section to the contrary, any bank or association that on the date of enactment of the Farm Credit Act Amendments of 1980, is offering insurance coverages not authorized by this section may continue to sell such coverages for a period of not more than one year from such date of enactment and may continue to service such coverages until their expiration.". "SEC.

TITLE V—DISTRICT AND FARM CREDIT ADMINISTRATION ORGANIZATION Virgin Islands, extension of credit and services. 12 USC 2221.

SEC. 501. Section 5.0 of the Farm Credit Act of 1971 is amended by inserting before the period at the end of the first sentence the

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