GUARANTEE OF QUALIFIED LOANS.

SEC. 107. GUARANTEE OF QUALIFIED LOANS. Section 8.6 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–6) is amended— (1) in subsection (a)(1)— (A) by striking “Corporation shall guarantee” and inserting the following: “Corporation— “(A) shall guarantee”; (B) by striking the period at the end and inserting “; and”; and (C) by adding at the end the following: “(B) may issue a security, guaranteed as to the timely payment of principal and interest, that represents an interest solely in, or an obligation fully backed by, a pool consisting of qualified loans that— “(i) meet the standards established under section 8.8; and “(ii) have been purchased and held by the Corporation”; (2) in subsection (d)— (A) by striking paragraph (4); and (B) by redesignating paragraphs (5), (6), and (7) as paragraphs (4), (5), and (6), respectively; and (3) in subsection (g)(2), by striking “section 8.0(9)(B))” and inserting “section 8.0(9))”.