DEFINITION OF PERMANENT CAPITAL.

SEC. 101. DEFINITION OF PERMANENT CAPITAL. Paragraph (1) of section 4.3A(a) (12 U.S.C. 2154a(a)(1)) is amended to read as follows: “(1) Permanent capital.— The term ‘permanent capital’ means— “(A) current year retained earnings; “(B) allocated and unallocated earnings (which, in the case of earnings allocated in any form by a System bank to any association or other recipient and retained by the bank, shall be considered, in whole or in part, permanent capital of the bank or of any such association or other recipient as provided under an agreement between the bank and each such association or other recipient); “(C) all surplus (less allowances for losses); “(D) stock issued by a System institution, except— “(i) stock that may be retired by the holder of the stock on repayment of the holder’s loan, or other-wise at the option or request of the holder, or “(ii) stock that is protected under section 4.9A or is otherwise not at risk; and “(E) any other debt or equity instruments or other accounts that the Farm Credit Administration determines appropriate to be considered permanent capital.”.