SHORT TITLE; TABLE OF CONTENTS.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.— This Act may be cited as the “Agricultural Credit Act of 1987”. (b) Table of Contents.— The table of contents is as follows: TABLE OF CONTENTS Sec. 1. Short title; table of contents. Sec. 2. References to the Farm Credit Act of 1971. TITLE I—ASSISTANCE TO FARM CREDIT SYSTEM BORROWERS Sec. 101. Protection of borrower stock. Sec. 102. Restructuring distressed loans. Sec. 103. Disclosure by banks and associations. Sec. 104. Access to documents and information. Sec. 105. Notice of action on application for loans or restructuring. Sec. 106. Reconsideration of actions. Sec. 107. Protection of borrowers who meet all loan obligations. Sec. 108. Right of first refusal. Sec. 109. Differential interest rates. Sec. 110. Application of uninsured accounts. TITLE II—ASSISTANCE TO FARM CREDIT SYSTEM Sec. 201. Assistance to Farm Credit System. “TITLE VI—ASSISTANCE TO FARM CREDIT SYSTEM “Subtitle A—Assistance Board “Sec. 6.0. Establishment of Board. “Sec. 6.1. Purposes. “Sec. 6.2. Board of Directors. “Sec. 6.3. Corporate powers. “Sec. 6.4. Certification of eligibility to issue preferred stock. “Sec. 6.5. Assistance. “Sec. 6.6. Special powers. “Sec. 6.7. Administration. “Sec. 6.8. Limitation of powers. “Sec. 6.9. Succession. “Sec. 6.10. Effect of regulations; audits. “Sec. 6.11. Exemption from taxation. “Sec. 6.12. Termination. “Sec. 6.13. Transitional provisions. “Subtitle B—Financial Assistance Corporation “Sec. 6.20. Establishment of Corporation. “Sec. 6.21. Purpose. “Sec. 6.22. Board of Directors. “Sec. 6.23. Stock. “Sec. 6.24. Corporate powers. “Sec. 6.25. Accounts. “Sec. 6.26. Debt obligations. 101 STAT. 1569 “Sec. 6.27. Preferred stock. “Sec. 6.28. Payments. “Sec. 6.29. One-time stock purchase. “Sec. 6.30. Exemption from taxation. “Sec. 6.31. Termination. Sec. 202. Revolving fund. Sec. 203. Unsafe or unsound practices. Sec. 204. Federal Farm Credit Banks Funding Corporation. Sec. 205. Regulatory accounting procedures. Sec. 206. Financial report. Sec. 207. Conforming amendments. TITLE III—CAPITALIZATION OF SYSTEM INSTITUTIONS Sec. 301. Capitalization of System institutions. Sec. 302. Insurance of obligations of Farm Credit System. “Part E—Farm Credit System Insurance Corporation “Sec. 5.51. Definitions. “Sec. 5.52. Establishment of Farm Credit System Insurance Corporation. “Sec. 5.53. Board of Directors. “Sec. 5.54. Commencement of insurance. “Sec. 5.55. Premiums. “Sec. 5.56. Certification of premiums. “Sec. 5.57. Overpayment and underpayment of premiums; remedies. “Sec. 5.58. General corporate powers. “Sec. 5.59. Conduct of corporate affairs; examination of insured System banks. “Sec. 5.60. Insurance Fund. “Sec. 5.61. Powers of Corporation with respect to troubled insured System banks. “Sec. 5.62. Investment of funds. “Sec. 5.63. Exemption from taxation. “Sec. 5.64. Reports. “Sec. 5.65. Prohibitions. Sec. 303. Joint and several liability of banks. Sec. 304. Enhancement of capital adequacy of banks. Sec. 305. Federal intermediate credit bank assessment power. Sec. 306. Conservators and receivers. TITLE IV—RESTRUCTURING THE FARM CREDIT SYSTEM Subtitle A—Creation of Farm Credit Banks Sec. 401. Farm Credit Banks and associations charters. “TITLE I—FARM CREDIT BANKS “Sec. 1.3. Establishment, charters, titles, branches. “Sec. 1.4. Board of directors. “Sec. 1.5. General corporate powers. “Sec. 1.6. Farm Credit Bank capitalization. “Sec. 1.7. Lending authority. “Sec. 1.8. Interest rates and other charges. “Sec. 1.9. Eligibility. “Sec. 1.10. Security; terms. “Sec. 1.11. Purposes for extensions of credit. “Sec. 1.12. Related services. “Sec. 1.13. Loans through associations or agents. “Sec. 1.14. Liens on stock. “Sec. 1.15. Taxation. “TITLE II—FARM CREDIT ASSOCIATIONS “Subtitle A—Production Credit Associations “Sec. 2.0. Organization and charters. “Sec. 2.1. Board of directors. “Sec. 2.2. General corporate powers. “Sec. 2.3. Production credit association capitalization. “Sec. 2.4. Short- and intermediate-term loans; participation; other financial assistance; terms; conditions; interest; security. 101 STAT. 1570 “Sec. 2.5. Other services. “Sec. 2.6. Taxation. “Subtitle B—Federal Land Bank Associations “Sec. 2.10. Organizations; articles; charters; powers of the Farm Credit Administration. “Sec. 2.11. Board of directors. “Sec. 2.12. General corporate powers. “Sec. 2.13. Federal land bank association capitalization. “Sec. 2.14. Liquidation. “Sec. 2.15. Agreements for sharing gains or losses. “Sec. 2.16. Liens on stock. “Sec. 2.17. Taxation. Subtitle B—Merger of System Institutions Sec. 410. Mandatory merger. Sec. 411. Merger of production credit associations and Federal land bank associations. Sec. 412. Consolidation of Farm Credit System districts. Sec. 413. Voluntary merger of the banks for cooperatives. Sec. 414. Bank for cooperatives board of directors. Sec. 415. Organization and operation of the merged bank for cooperatives. “Part B—United and National Banks for Cooperatives “Sec. 3.20. Charter, powers, and operation. “Sec. 3.21. Board of directors provisions. “Sec. 3.22. Credit delivery office. “Sec. 3.23. Consolidation of functions. “Sec. 3.24. Exchange of ownership interests. “Sec. 3.25. Capitalization. “Sec. 3.26. Patronage pools. “Sec. 3.27. Transactions to accomplish the merger. “Sec. 3.28. Lending limits. Sec. 416. Merger of System institutions. “TITLE VII—MERGERS OF SYSTEM INSTITUTIONS “Subtitle A—Merger of Banks Within a District “Sec. 7.0. Power to merge. “Sec. 7.1. Board of Directors for the district. “Sec. 7.2. Powers of merged banks. “Sec. 7.3. Capital stock. “Sec. 7.4. Earnings, reserves, and distributions. “Sec. 7.5. Reports by merged banks for cooperatives. “Subtitle B—Mergers, Transfers of Assets, and Powers of Associations Within a District “Chapter 1—Transfers by Federal Land Banks to Federal Land Bank Associations “Sec. 7.6. Transfer of lending authority. “Chapter 2—Merger of Like and Unlike Associations “Sec. 7.7. Mergers of unlike associations. “Sec. 7.8. Merger of associations. “Sec. 7.9. Reconsideration. “Chapter 3—Termination and Dissolution of Institutions “Sec. 7.10. Termination of System institution status. “Sec. 7.11. Approval of disclosure information and issuance of charters. “Sec. 7.12. Merger of similar banks. “Sec. 7.13. Merger of similar associations. Sec. 414. Nondiscrimination. Sec. 415. Conforming amendments. Subtitle C—Other Restructuring Provisions Sec. 420. Communications with stockholders. Sec. 421. Eligibility to borrower from a bank for cooperatives. 101 STAT. 1571 Sec. 422. Sales of insurance by System institutions. Sec. 423. Civil money penalties. Sec. 424. Limitation on FCA authority to require disclosure of information. Sec. 425. Removal of certain sunset provisions; prohibition against use of signed ballots. Sec. 426. Federal land bank loan security. Sec. 427. Affirmative action. Sec. 428. Encouragement of conservation practices. Sec. 429. Uniform financial reporting instructions. Sec. 430. Compensation for directors. Sec. 431. Farm Credit Administration Board. Sec. 432. Farm Credit Administration organization. Sec. 433. Reassignment of associations to adjoining districts. Sec. 434. Conforming amendment. TITLE V—STATE MEDIATION PROGRAMS Subtitle A—Matching Grants for State Mediation Programs Sec. 501. Qualifying States. Sec. 502. Matching grants to States. Sec. 503. Participation of Federal agencies. Sec. 504. Regulations. Sec. 505. Report. Sec. 506. Authorization of appropriations. Subtitle B—Waiver of Mediation Rights Sec. 511. Waiver of mediation rights by Farm Credit System borrowers. Sec. 512. Waiver of mediation rights by FmHA borrowers. TITLE VI—FARMERS HOME ADMINISTRATION LOANS Sec. 601. Amendment of Consolidated Farm and Rural Development Act. Sec. 602. Definitions. Sec. 603. Security for FmHA real estate loans. Sec. 604. Additional collateral. Sec. 605. Notice of loan service programs. Sec. 606. Planting and production history guidelines. Sec. 607. County committees. Sec. 608. Administrative appeals. Sec. 609. Borrowers’ right to information. Sec. 610. Disposition and leasing of farmland. Sec. 611. Income release. Sec. 612. Conservation easements. Sec. 613. Interest rate reduction program; demonstration project for purchase of System land. Sec. 614. Homestead protection. Sec. 615. Debt restructuring and loan servicing. Sec. 616. Transfer of inventory lands. Sec. 617. Target participation rates. Sec. 618. Expedite clearing of title to inventory property. Sec. 619. Payment of losses on guaranteed loans. Sec. 620. Lease of certain acquired property. Sec. 621. Study and report to Congress before issuance of certain final regulations. Sec. 622. Continuation of limited resource farmers’ initiative. Sec. 623. Farm ownership outreach program to socially disadvantaged individuals. Sec. 624. Regulations. Sec. 625. Sense of Congress regarding guaranteed loan program. Sec. 626. Sense of Congress regarding National Rural Crisis Response Center. TITLE VII—AGRICULTURAL MORTGAGE SECONDARY MARKETS Subtitle A—The Federal Agricultural Mortgage Corporation Sec. 701. Statement of purpose. Sec. 702. Agricultural mortgage secondary market. “TITLE VIII—AGRICULTURAL MORTGAGE SECONDARY MARKET “Sec. 8.0. Definitions. “Sec. 8.1. Federal Agricultural Mortgage Corporation. “Sec. 8.2. Board of directors. “Sec. 8.3. Powers and duties of Corporation and Board. “Sec. 8.4. Stock issuance. 101 STAT. 1572 “Sec. 8.5. Certification of agricultural mortgage marketing facilities. “Sec. 8.6. Guarantee of qualified loans. “Sec. 8.7. Reserves and subordinated participation interests of certified facilities. “Sec. 8.8. Standards for qualified loans. “Sec. 8.9. Exemption from restructuring and borrowers rights provisions for pooled loans. “Sec. 8.10. Funding for guarantee; reserves of Corporation. “Sec. 8.11. Supervision, examination, and report of condition. “Sec. 8.12. Securities in credit enhanced pools. “Sec. 8.13. Authority to issue obligations to cover guarantee losses of Corporation. “Sec. 8.14. Federal jurisdiction. Sec. 703. GAO audit of Federal Agricultural Mortgage Corporation. Sec. 704. GAO studies. Sec. 705. Conforming amendments. Subtitle B—Farmers Home Administration Loans Sec. 711. Improvement of secondary market operations for loans guaranteed by the Farmers Home Administration. TITLE VIII—MISCELLANEOUS Sec. 801. Ownership requirement under the conservation reserve program. Sec. 802. Repeal of preapproval and related authorities. Sec. 803. Sale of rural development notes. Sec. 804. Other conforming amendments. Sec. 805. Technical amendments. TITLE IX—REGULATIONS Sec. 901. Effective dates.