CONSOLIDATION OF FARM CREDIT SYSTEM DISTRICTS.

SEC. 412. CONSOLIDATION OF FARM CREDIT SYSTEM DISTRICTS. (a) Submission of Proposal.— (1) Special committee.— (A) In general.— Not later than 6 months after the date of the enactment of this section, a special committee shall be selected pursuant to regulations of the Farm Credit Administration for the purpose of developing a proposal for the consolidation of Farm Credit System districts. (B) Composition.— The special committee selected under subparagraph (A) shall be composed of one representative from each Farm Credit Bank board and the members of the Board of Directors of the Assistance Board. (2) Development of proposal.— Not later than 6 months after the formation of the special committee, the committee shall develop, a proposal to consolidate the Farm Credit System 101 STAT. 1639banks into no less than six financially viable farm credit banks through inter-district mergers. (3) Report.— Not later than the end of each calendar quarter beginning at least 6 months after the selection of the special committee, such committee shall prepare and submit, to the Committee on Agriculture of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry of the Senate, a report on the progress of the committee in developing a proposal under this subsection. (b) Prerequisites to Consolidation.— (1) FCA review of proposal.— Prior to the submission of the proposal developed under subsection (b)(2) to the stockholders under paragraph (2), the proposal together with all information to be presented to the stockholders, shall be submitted to the Farm Credit Administration for approval. (2) Prerequisites.— Proposals developed under subsection (a)(2) shall not be submitted to stockholders under paragraph (3) unless the proposal is approved by— (A) a majority of the members of the Board of Directors of the Assistance Board; and (B) the members of the special committee that represent the districts affected by the terms of the proposal. (3) Submission to stockholders.— Not later than the end of the 18-month period after the date of enactment of this Act, each Farm Credit Bank involved, in consultation with the special committee, shall submit the proposed merger affecting such bank to the voting stockholders of each such bank. (4) Stockholder vote.— Each association shall be entitled to cast a number of votes equal to the number of voting stockholders of such association.