FEDERAL FARM CREDIT BANKS FUNDING CORPORATION.

SEC. 204. FEDERAL FARM CREDIT BANKS FUNDING CORPORATION. (a) In General.— Section 4.9 (12 U.S.C. 2160) is amended to read as follows: “SEC. 4.9. FEDERAL FARM CREDIT BANKS FUNDING CORPORATION. “(a) Establishment.— There is hereby established the Federal Farm Credit Banks Funding Corporation (hereinafter in this section referred to as the ‘Corporation’), which shall be an institution of the Farm Credit System. “(b) Duties.— The Corporation— “(1) shall issue, market, and handle the obligations of the banks of the Farm Credit System, and interbank or intersystem flow of funds as may from time to time be required; 101 STAT. 1606 “(2) acting for the banks of the Farm Credit System, subject to approval of the Farm Credit Administration, shall determine the amount, maturities, rates of interest, terms, and conditions of participation by the several banks in each issue of joint, consolidated, or System-wide obligations; and “(3) shall exercise such other powers as were provided to the Funding Corporation in accordance with its charter issued under section 4.25, in effect immediately before the date of the enactment of the Agricultural Credit Act of 1987. “(c) Officers and Committees.— “(1) Designation.— The board of directors may designate such officers and committees for such terms and such purposes as may be agreed on by the board. “(2) Issuance of obligations.— When appropriate to the board’s functions under this section, a committee of the board of directors of the Corporation, or representatives thereof, may act on behalf of the board in connection with the issuance of joint, consolidated, and System-wide obligations. “(d) Board of Directors.— “(1) Composition.— The board of directors shall be composed of nine voting members and one nonvoting member, as follows: “(A) Four voting members shall be current or former directors of the System banks elected by the shareholders of the Corporation. “(B) Three voting members shall be chief executive officers or presidents of System banks elected by the shareholders of the Corporation. “(C) Two voting members shall be appointed by the members elected under subparagraphs (A) and (B) after the elected members have received recommendations for such appointments from, and consulted with, the Secretary of the Treasury and the Chairman of the Board of Governors of the Federal Reserve System. The appointed members shall be selected from United States citizens— “(i) who are not borrowers from, shareholders in, or employees or agents of any System institution, who are not affiliated with the Farm Credit Administration, and who are not actively engaged with a bank or investment organization that is a member of the Corporation’s selling group for System-wide securities; and “(ii) who are experienced or knowledgeable in corporate and public finance, agricultural economics, and financial reporting and disclosure. “(D) The president of the Corporation shall serve as a nonvoting member of the board. In selecting candidates under subparagraphs (A) and (B), due consideration shall be given to choosing individuals knowledgeable in agricultural economics, public and corporate finance, and financial reporting and disclosure. “(2) Nonvoting representatives.— “(A) Assistance board.— During the period in which the Assistance Board is in existence, the board of directors of the Assistance Board shall designate one of its directors to serve as a nonvoting representative to the board of directors of the Corporation. “(B) Insurance corporation.— After such period, the board of directors of the Farm Credit System Insurance 101 STAT. 1607Corporation may designate one of its directors to serve as a nonvoting representative to the board of directors of the Federal Farm Credit Banks Funding Corporation. “(C) Meetings.— The persons so designated by the Assistance Board and by the Farm Credit System Insurance Corporation may attend and participate in all deliberations of the board of directors of the Federal Farm Credit Banks Funding Corporation. “(e) Transitional Authority.— Until a quorum of the board of directors of the Corporation is elected or appointed, the finance committee established under section 4.5 in effect before the date of the enactment of this section, and the fiscal agency established under section 4.9 in effect before such date of enactment, shall continue to operate as if this section had not been enacted.”. (b) Conforming Repealer.— Section 4.5 (12 U.S.C. 2156) is repealed.