REPEAL OF PREAPPROVAL AND RELATED AUTHORITIES.

SEC. 802. REPEAL OF PREAPPROVAL AND RELATED AUTHORITIES. (a) Approval of Amendments to Federal Land Bank Charters.— Section 1.3 (12 U.S.C. 2011) is amended by striking out the second sentence and inserting in lieu thereof “The Farm Credit Administration shall approve amendments consistent with this Act to charters of Federal land banks.”. (b) Federal Land Bank Powers.— Section 1.4 (12 U.S.C. 2012) is amended— (1) in paragraph (15), by striking out “and approved by” and inserting in lieu thereof “in accordance with regulations of”; (2) in paragraph (21), by striking out “as” and by inserting in lieu thereof “in accordance with generally accepted accounting principles, except as may be”; and (3) in paragraph (22), by striking out “and approved by the Farm Credit Administration”. (c) Land Bank Stock.— Section 1.5 (12 U.S.C. 2013) is amended— (1) in subsection (a), by striking out “with the approval of the Farm Credit Administration”; (2) in subsection (d), by striking out “and approved by the Farm Credit Administration”; and (3) in subsection (f), by striking out “the Farm Credit Administration may approve” and inserting in lieu thereof “may be approved by the board of directors of the bank”. (d) Security for Federal Land Bank Loans.— Section 1.9 (12 U.S.C. 2017) is amended— (1) in the first sentence, by striking out “approved by” and inserting in lieu thereof “prescribed by regulations of”; and (2) in the second sentence, by striking out “and approved by” and inserting in lieu thereof “in accordance with regulations of”. (e) FCA Authority Over Federal Land Bank Associations.— The last sentence of section 1.13 (12 U.S.C. 2031) is amended— (1) by striking out “or by approving bylaws of the association,”; (2) by striking out “direct at any time changes in” and inserting in lieu thereof “approve amendments to”; and (3) by striking out “as” and all that follows through “Act”. 101 STAT. 1711 (f) Land Bank Reserves.— Section 1.17 (12 U.S.C. 2051) is amended— (1) in subsection (a), by inserting “regulations of’ before “the Farm Credit Administration”; and (2) in subsection (b)— (A) by striking out “(1)”; and (B) by striking out “hereof, and (2) the approval of the Farm Credit Administration”. (g) Association Reserves.— Section 1.18(a) (12 U.S.C. 2052(a)) is amended by inserting “regulations of” before “the Farm Credit Administration”. (h) Federal Intermediate Credit Bank, Establishment.— Section 2.0 (12 U.S.C. 2017) is amended by striking out the second sentence and inserting in lieu thereof “The Farm Credit Administration shall approve amendments consistent with this Act to charters of Federal intermediate credit banks.”. (i) Federal Intermediate Credit Bank, Corporate Powers.— Section 2.1 (12 U.S.C. 2018) is amended— (1) in paragraph (13), by striking out “and approved by” and inserting in lieu thereof “in accordance with regulations of”; and (2) in paragraph (18), by striking out “and approved by the Farm Credit Administration”. (j) Federal Intermediate Credit Bank, Stock.— Section 2.2 (12 U.S.C. 2019) is amended— (1) in subsection (a), by striking out “with the approval of the Farm Credit Administration”; (2) in subsection (d), by striking out “and approved by the Farm Credit Administration”; and (3) in subsection (g)— (A) in the first paragraph, by striking out “, with the approval of the Farm Credit Administration,”; (B) in the second paragraph, by striking out “, with approval of the Farm Credit Administration,”; and (C) in the first sentence of the fourth paragraph, by striking out “under” and inserting in lieu thereof “in accordance with”. (k) Net Earnings.— The second sentence of section 2.6(c) (12 U.S.C. 2077(a)) is amended— (1) by striking out “approved” and inserting in lieu thereof “established”; and (2) by inserting after “Administration” the following “in regulations”. (l) Production Credit Associations, Charter.— The last sentence of section 2.10 (12 U.S.C. 2019) is amended— (1) by striking out “or by approval of bylaws of the association,”; and (2) by striking out “direct” and all that follows through the period and inserting in lieu thereof “approve amendments to the charter of such association.”. (m) Banks for Cooperatives, Establishemnt.— Section 3.0 (12 U.S.C. 2121) is amended by striking out the second sentence and inserting in lieu thereof “The Farm Credit Administration shall approve amendments consistent with this Act to charters and organizational certificates of banks for cooperatives.”. 101 STAT. 1712 (n) Banks for Cooperatives, Corporation.— Section 3.1 (12 U.S.C. 2122) is amended by striking out “and approved by the Farm Credit Administration” each place it appears. (o) Banks for Cooperatives, Stock.— Section 3.3 (12 U.S.C. 2124) is amended— (1) in subsection (a), by striking out “, with the approval of the Farm Credit Administration,”; (2) in subsection (b), by striking out “with the approval of the Farm Credit Administration”; and (3) in subsection (e), by striking out “and approved by the Farm Credit Administration”. (p) Banks for Cooperatives, Retirement of Stock.— Section 3.5 (12 U.S.C. 2125) is amended by striking out “with approval of the Farm Credit Administration”. (q) Ownership of Stock.— Section 3.9(a) (12 U.S.C. 2130(a)) is amended— (1) in the first sentence, by striking out “with the approval of the Farm Credit Administration”; (2) in the second sentence, by striking out “, with the approval of the Farm Credit Administration,”; and (3) in the third sentence, by striking out “as may be approved by the Farm Credit Administration”. (r) Earnings and Reserves.— Section 3.11 (12 U.S.C. 2131) is amended— (1) in subsection (b), by striking out “as may be approved by the Farm Credit Administration”; (2) in subsection (c), by striking out “the Farm Credit Administration may approve” and inserting in lieu thereof “may be approved by the board of directors”; and (3) in subsection (d), by striking out “the Farm Credit Administration may approve” and inserting in lieu thereof “may be approved by the board of directors”. (s) Powers of the Farm Credit Administration.— Section 4.26 (12 U.S.C. 2212) is amended— (1) by striking out “or by prescribing in the terms of the charter or by approval of the bylaws of the corporation”; (2) by striking out “direct at any time” and all that follows through the period at the end of the first sentence and inserting in lieu thereof “approve amendments consistent with this Act to charters or articles of service corporations.”; and (3) by striking out the second sentence. (t) Supervision.— The heading of section 4.27 (12 U.S.C. 2213) is amended by striking out “Supervision” and inserting in lieu thereof “Regulation”. (u) District Elections.— Section 5.2 (12 U.S.C. 2223) is amended— (1) in subsection (b)— (A) by striking out “Farm Credit Administration” the first place it appears and inserting in lieu thereof “district election committee of the district where the election will be held”; and (B) by striking out “Farm Credit Administration” each place it appears thereafter and inserting in lieu thereof “district election committee”; (2) in subsection (c)— (A) by striking out “Farm Credit Administration” the first place it appears and inserting in lieu thereof “district 101 STAT. 1713election committee of the district where the election will be held”; (B) by striking out “Farm Credit Administration” each place it appears thereafter and inserting in lieu thereof “district election committee”; and (C) by striking out “(b)” and inserting in lieu thereof “(c)”; and (3) by redesignating subsections (b), (c), and (d), as subsections (c), (d), and (e), respectively, and inserting after subsection (a) the following: “(b) Each district board shall designate a district election committee. No member of such district election committee shall be a candidate for election to the district board. The responsibilities and authorities of the district election committee, delegated by the district board, shall be those set forth in this section.”. (v) Farm Credit Administration, Powers.— Section 5.17 (12 U.S.C. 2251) is amended— (1) in subsection (a)— (A) in paragraph (2), by striking out “amend or modify” and inserting in lieu thereof “approve amendments to”; and (B) in paragraph (5), by striking out “that meet standards and criteria” and all that follows through “refunds by Farm Credit System institutions”; and (2) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively, and by inserting after subsection (a) the following: “(b) The Farm Credit Administration shall not have authority, either direct or indirect, to approve bylaws, or any amendments or modifications or changes to bylaws, of System institutions.”. (w) Transition Rules Relating to Amendment of Certain FCA Approval Authorities.—Part D of title V (12 U.S.C. 2001 note, et seq.) is amended by adding at the end thereof the following new section: “SEC. 5.45. TRANSITION RILES RELATING TO AMENDMENT OF CERTAIN FCA APPROVAL AUTHORITIES. “(a) In General.— Any approvals granted by the Farm Credit Administration before the date of the enactment of this section shall remain in effect on and after such date. “(b) Authority to Issue Regulations.— “(1) In general.— Any approval authority of the Farm Credit Administration that, under the amendments made by section 802 of the Agricultural Credit Act of 1987, became an authority to issue regulations may be exercised only until the earlier of the date the Farm Credit Administration issues final regulations under such authority, or 1 year after the date of the enactment of this section. “(2) Enforcement actions.— At the close of the 1-year period referred to in paragraph (1), the Farm Credit Administration shall not take any enforcement action against any System institution with respect to any provision so amended, until the Farm Credit Administration issues final regulations under such provision. “(c) Effect of Section.— This section shall not affect the authority of the Farm Credit Administration to exercise any other approval authority either on a case-by-case basis or through regulation, as provided in section 5.17(a)(5).”.