Page:United States Statutes at Large Volume 99 Part 2.djvu/568

 99 STAT. 1678

PUBLIC LAW 99-205—DEC. 23, 1985

Public Law 99-205 99th Congress An Act Dec. 23, 1985 [S. 1884] Farm Credit Amendments Act of 1985. Banks and banking. Loans. 12 USC 2001 note.

12 USC 2151. 12 USC 1131. 12 USC 1141d. 12 USC 2001 note.

12 USC 2152. 12 USC 2154.

To amend the Farm Credit Act of 1971, to restructure and reform the Farm Credit System, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Farm Credit Amendments Act of 1985". TITLE I—PROVISIONS TO STRENGTHEN THE OPERATION OF FARM CREDIT SYSTEM LENDING INSTITUTIONS CAPITAL AND FINANCING

S E C 101. Part A of title IV of the Farm Credit Act of 1971 is amended by— (1) amending section 4.0 to read as follows: " S E C 4.0. REVOLVING FUNDS; INVESTMENTS.—The revolving fund established by Public Law 87-343, 75 Stat. 758, as amended, and the revolving fund established by Public Law 87-494, 76 Stat. 109, as amended, and continued by Public Law 96-592, shall be merged and shall be available to the Farm Credit Administration for the purchase, on behalf of the United States, of capital stock of the Capital Corporation. The Farm Credit Administration may make such purchases of stock as the Farm Credit Administration determines, in its discretion, are necessary to achieve the purposes of this Act."; (2) striking out section 4.1; (3) in section 4.3— (A) redesignating subsection (b) as subsection (c); and (B) by striking out the matter preceding subsection (b) and inserting in lieu thereof the following: " S E C 4.3. CAPITAL ADEQUACY OF BANKS AND ASSOCIATIONS.—(a)

The Farm Credit Administration shall cause System institutions to achieve and maintain adequate capital by establishing minimum levels of capital for such System institutions and by using such other methods as the Farm Credit Administration deems appropriate. The Farm Credit Administration may establish such minimum level of capital for a System institution as the Farm Credit Administration, in its discretion, deems to be necessary or appropriate in light of the particular circumstances of the System institution. "(b)(l) Failure of a System institution to maintain capital at or above its minimum level as established under subsection (a) may be deemed by the Farm Credit Administration, in its discretion, to constitute an unsafe and unsound practice within the meaning of this Act. "(2)(A) In addition to, or in lieu of, any other action authorized by law, including paragraph (1), the Farm Credit Administration may issue a directive to a System institution that fails to maintain capital at or above its required level as established under subsection (a). Such directive may require the System institution to submit and adhere to a plan acceptable to the Farm Credit Administration

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