Agricultural Credit Insurance Fund Amendments.—

Sec. 115. Agricultural Credit Insurance Fund Amendments.— (a) Section 309(f) of the Consolidated Farmers Home Administration Act of 1961 is amended by— (1) changing “$100,000,000” to “$500.000.000” in paragraph (2) changing paragraph (2) by— (A) striking out “the interest” and inserting in lieu thereof “amounts”; (B) changing “prepayments” to “payments” in all three places; and (C) inserting after “until due” the following: “or until the next agreed annual or semiannual remittance date”. (3) striking out “section 335(a) in connection with insured loans.” in paragraph (5) and inserting in lieu thereof “connection with insured loans, including the difference between interest payable by borrowers and interest to which insured lenders or insured holders are entitled under agreements with the Secretary included in contracts of insurance.”. (4) inserting in paragraph (5) after “to pay” the following: “for contract services,”. 86 Stat. 661 (b) Section 309 of such Act is amended by adding at the end thereof the following new subsections: “(g) (1) The assets and liabilities of, and authorizations applicable to, the Farmers Home Administration direct loan account created by section 338(c) and the Emergency Credit Revolving Fund referred to in section 326 are hereby transferred to the fund, and such account and such revolving fund are hereby abolished. Such assets and their proceeds, including loans made out of the fund pursuant to this section, shall be subject to the provisions of this section, section 308, the last sentence of section 306 (a)(1), and the last sentence of section 307. “(2) From time to time, and at least at the close of each fiscal year, the Secretary shall pay from the fund into the Treasury as miscellaneous receipts interest on the value as determined by the Secretary, with the approval of the Comptroller General, of the Government’s equity transferred to the fund pursuant to the first sentence of this subsection plus the cumulative amount of appropriations made available after enactment of this provision as capital and for administration of the programs financed from the fund, less the average undisbursed cash balance in the fund during the year. The rate of such interest shall be determined by the Secretary of the Treasury, taking into consideration the current average yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of loans made or insured from the fund, adjusted to the nearest one-eighth of 1 per centum. Interest payments may be deferred with the approval of the Secretary of the Treasury, but any interest payments so deferred shall themselves bear interest. If at any time the Secretary determines that moneys in the fund exceed present and any reasonably prospective future requirements of the fund, such excess may be transferred to the general fund of the Treasury. “(h) The Secretary may provide financial assistance to borrowers for purposes provided in this title by guaranteeing loans made by any Federal or State chartered bank, savings and loan association, cooperative lending agency, or other legally organized lending agency.”