POWERS WITH RESPECT TO TROUBLED INSURED SYSTEM BANKS.

SEC. 217. POWERS WITH RESPECT TO TROUBLED INSURED SYSTEM BANKS. (a) Least-Cost Resolution.— Section 5.61(a)(3) of the Farm Credit Act of 1971 (12 U.S.C. 2277a–10(a)) is amended— (1) by redesignating subparagraph (B) as subparagraph (F); and (2) by striking subparagraph (A) and inserting the following: “(A) Least-cost resolution.— Assistance may not be provided to an insured System bank under this subsection unless the means of providing the assistance is the least costly means of providing the assistance by the Farm Credit Insurance Fund of all possible alternatives available to the Corporation, including liquidation of the bank (including paying the insured obligations issued on behalf of the bank). Before making a least-cost determination under this subparagraph, the Corporation shall accord such other insured System banks as the Corporation determines to be appropriate the opportunity to submit information relating to the determination. “(B) Determining least costly approach.— In determining the least costly alternative under subparagraph (A), the Corporation shall— “(i) evaluate alternatives on a present-value basis, using a reasonable discount rate; “(ii) document the evaluation and the assumptions on which the evaluation is based; and “(iii) retain the documentation for not less than 5 years. “(C) Time of determination.— 110 STAT. 180 “(i) General rule.— For purposes of this subsection, the determination of the costs of providing any assistance under any provision of this section with respect to any insured System bank shall be made as of the date on which the Corporation makes the determination to provide the assistance to the institution under this section. “(ii) Rule for liquidations.— For purposes of this subsection, the determination of the costs of liquidation of any insured System bank shall be made as of the earliest of— “(I) the date on which a conservator is appointed for the insured System bank; “(II) the date on which a receiver is appointed for the insured System bank; or “(III) the date on which the Corporation makes any determination to provide any assistance under this section with respect to the insured System bank. “(D) Rule for standalone assistance.— Before providing any assistance under paragraph (1), the Corpora–tion shall evaluate the adequacy of managerial resources of the insured System bank. The continued service of any director or senior ranking officer who serves in a policy-making role for the assisted insured System bank, as determined by the Corporation, shall be subject to approval by the Corporation as a condition of assistance. “(E) Discretionary determinations.— Any determination that the Corporation makes under this paragraph shall be in the sole discretion of the Corporation.”. (b) Conforming Amendments.— Section 5.61(a) of the Farm Credit Act of 1971 (12 U.S.C. 2277a–10(a)) is amended— (1) in paragraph (1) by striking “In general.—” and inserting “Stand-alone assistance.—”; and (2) in paragraph (2)— (A) by striking “Enumerated powers.—” and inserting “Facilitation of mergers or consolidation.—”; and (B) in subparagraph (A) by striking “Facilitation of mergers of consolidation.—” and inserting “In general.—