INSURANCE CORPORATION PREMIUMS.

SEC. 5403. INSURANCE CORPORATION PREMIUMS. (a) Reduction in Premiums for GSE-Guaranteed Loans.— (1) In general.—Section 5.55 of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4) is amended— (A) in subsection (a)— (i)in paragraph (1)— (I) in subparagraph (A), by striking “government-guaranteed loans provided for in subparagraph (C)” and inserting “loans provided for in subparagraphs (C) and (D)”; (II) in subparagraph (B), by striking “and” at the end; (III) in subparagraph (C), by striking the period at the end and inserting “; and”; and (IV) by adding at the end the following: “(D) the annual average principal outstanding for such year on the guaranteed portions of Government Sponsored Enterprise-guaranteed loans made by the bank that are in accrual status, multiplied by a factor, not to exceed 0.0015, determined by the Corporation at the sole discretion of the Corporation.”; and (ii)by adding at the end the following: “(4) Definition of government sponsored enterprise-guaranteed loan.—In this section and sections 1.12(b) and 5.56(a), the term ‘Government Sponsored Enterprise-guaranteed loan’ means a loan or credit, or portion of a loan or credit, that is guaranteed by an entity that is chartered by Congress to serve a public purpose and the debt obligations of which are not explicitly guaranteed by the United States, including the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Home Loan Bank System, and the Federal Agricultural Mortgage Corporation, but not including any other institution of the Farm Credit System.”; and (B) in subsection (e)(4)(B), by striking “government-guaranteed loans described in subsection (a)(1)(C)” and inserting “loans described in subparagraph (C) or (D) of subsection (a)(1)”. (2) Conforming amendments.— (A) Section 1.12(b) of the Farm Credit Act of 1971 (12 U.S.C. 2020(b)) is amended—116 STAT. 351 (i)in paragraph (1), by inserting “and Government Sponsored Enterprise-guaranteed loans (as defined in section 5.55(a)(4)) provided for in paragraph (4)” after “government-guaranteed loans (as defined in section 5.55(a)(3)) provided for in paragraph (3)”; (ii)in paragraph (2), by striking “and” at the end; (iii)in paragraph (3), by striking the period at the end and inserting “; and”; and (iv)by adding at the end the following: “(4) the annual average principal outstanding for such year on the guaranteed portions of Government Sponsored Enterprise-guaranteed loans (as so defined) made by the association, or by the other financing institution and funded by or discounted with the Farm Credit Bank, that are in accrual status, multiplied by a factor, not to exceed 0.0015, determined by the Corporation for the purpose of setting the premium for such guaranteed portions of loans under section 5.55(a)(1)(D).”. (B) Section 5.56(a) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-5(a)) is amended— (i)in paragraph (1), by inserting “and Government Sponsored Enterprise-guaranteed loans (as defined in section 5.55(a)(4))” after “government-guaranteed loans”; (ii)by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively; and (iii)by inserting after paragraph (3) the following: “(4) the annual average principal outstanding on the guaranteed portions of Government Sponsored Enterprise-guaranteed loans (as defined in section 5.55(a)(4)) that are in accrual status;”. (b) Applicability.—The amendments made by this section shall apply with respect to determinations of premiums for calendar note year 2002 and for any succeeding calendar year, and to certified statements with respect to such premiums.