AMENDMENTS RELATED TO SECTION 204 OF THE 1987 ACT.

SEC. 203. AMENDMENTS RELATED TO SECTION 204 OF THE 1987 ACT. (a) Section 4.9 is amended by adding at the end the following: “(f) Succession.— “(1) Assets and liabilities.—The Corporation shall, by operation of law and without any further action by the Farm Credit Administration, the predecessor Federal Farm Credit Banks Funding Corporation (hereinafter referred to in this subsection as ‘the predecessor corporation’) chartered under this Act, or any court, succeed to the assets of and assume all debts, obligations, contracts, and other liabilities of the predecessor corporation, matured or unmatured, accrued, absolute, contingent or otherwise, and whether or not reflected or reserved against on balance sheets, books of account, or records of the predecessor corporation. “(2) Contracts.—The existing contractual obligations, security instruments, and title instruments of the predecessor corporation shall, by operation of law and without any further 102 STAT. 993action by the Farm Credit Administration, the predecessor corporation, or any court, become and be converted into obligations, entitlements, and instruments of the Corporation. “(3) Stock.—The stock of the predecessor corporation issued before the date of the enactment of this section shall, by operation of law and without any further action by the Farm Credit Administration, the predecessor corporation, or any court, become and be converted into stock of the Corporation established by this section. “(4) Taxation.—The succession to assets, assumption of liabilities, conversion of obligations, instruments, and stock, and effectuation of any other transaction by the Corporation to carry out this subsection shall not be treated as a taxable event under the laws of any State or political subdivision thereof.”. (b) Section 4.9(b)(3) is amended by inserting “predecessor Federal Farm Credit Banks” before “Funding Corporation”. (c) Subparagraphs (B) and (C) of section 4.9(d)(2) are each amended by striking out “Federal Farm Credit Banks Funding”. (d) Section 4.9(e) is amended to read as follows: “(e) Transitional Authority.—Until a majority of the voting members of the board of directors of the Corporation is elected, which shall occur as soon as is practicable after the enactment of this section— “(1) the finance committee established under section 4.5 in effect before the date of the enactment of this section, and the fiscal agency established under section 4.9 in effect before such date of enactment, shall continue to operate as if this section had not been enacted; and “(2) the board of directors of the predecessor Federal Farm Credit Banks Funding Corporation shall be the board of directors of the Financial Assistance Corporation.”. (e) Section 4.2(e) is amended— (1) by striking out “their” and inserting in lieu thereof “the”; and (2) by striking out “fiscal agent” each place it appears and inserting in lieu thereof “Federal Farm Credit Banks Funding Corporation”.