AUTHORITY TO EXAMINE SYSTEM INSTITUTIONS.

SEC. 513. AUTHORITY TO EXAMINE SYSTEM INSTITUTIONS. (a) Authority of Farm Credit System Insurance Corporation.—Section 5.59 (12 U.S.C. 2277a–8) is amended— (1) “insured system banks”and inserting “system institutions”; and (2) by striking subsection (b) and inserting the following new subsection: “(b) Examination of System Institutions.— “(1) Examination authority.— “(A) In general.—If the Board of Directors considers it necessary to examine an insured System bank, a production credit association, an association making direct loans under the authority provided under section 7.6, or any System institution in receivership, the Board may, using Farm Credit Administration examiners, conduct the examination using reports and other information on the System institution prepared or held by the Farm Credit Administration. 106 STAT. 4134 “(B) Request for additional examination or other information.—If the Board determines that such reports or information are not adequate to enable the Corporation to carry out the duties of the Corporation under this subsection, the Board shall request the Farm Credit Administration to examine or to obtain other information from or about the System institution and provide to the Corporation the resulting examination report or such other information. “(2) Appointment of examiners.—If the Farm Credit Administration informs the Corporation that the Farm Credit Administration is unable to comply with a request made under paragraph (1)(B) with respect to a System institution, the Board may appoint examiners to examine the institution. “(3) Powers and report.—Each examiner appointed under paragraph (2) shall make such examination of the affairs of the System institution as the Board may direct, and shall make a full and detailed report of the examination to the Corporation. “(4) Appointment of claim agents.—The Board of Directors of the Corporation shall appoint claim agents who may investigate and examine all claims for insured obligations.”. (b) Duties of the Farm Credit Administration.—Section 5.19 (12 U.S.C. 2254) is amended by adding at the end the following new subsection: “(d) On receipt of a request made under section 5.59(b)(1)(B) with respect to a System institution, the Farm Credit Administration shall— “(1) furnish for the confidential use of the Farm Credit System Insurance Corporation reports of examination of the institution and other reports or information on the institution; and “(2) (A) examine, or obtain other information on, the institution and furnish for the confidential use of the Farm Credit System Insurance Corporation the report of the examination and such other information; or “(B) if the Farm Credit Administration Board determines that compliance with the request would substantially impair the ability of the Farm Credit Administration to carry out the other duties and responsibilities of the Farm Credit Administration under this Act, notify the Board of Directors of the Farm Credit System Insurance Corporation that the Farm Credit Administration will be unable to comply with the request.”.