PREMIUMS.

SEC. 5404. PREMIUMS.(a) Amount in Fund Not Exceeding Secure Base Amount.—Section 5.55(a) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4(a)) is amended—(1) in paragraph (1)—(A) in the matter preceding subparagraph (A)—(i) by striking “paragraph (2)” and inserting “paragraph (3)”; and(ii) by striking “annual” ; and(B) by striking subparagraphs (A) through (D) and inserting the following:122 STAT. 1155 “(A) the average outstanding insured obligations issued by the bank for the calendar year, after deducting from the obligations the percentages of the guaranteed portions of loans and investments described in paragraph (2), multiplied by 0.0020; and“(B) the product obtained by multiplying—“(i) the sum of—“(I) the average principal outstanding for the calendar year on loans made by the bank that are in nonaccrual status; and“(II) the average amount outstanding for the calendar year of other-than-temporarily impaired investments made by the bank; by“(ii) 0.0010.”;(2) by striking paragraph (4);(3) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively;(4) by inserting after paragraph (1) the following:“(2) Deductions from average outstanding insured obligations.—The average outstanding insured obligations issued by the bank for the calendar year referred to in paragraph (1)(A) shall be reduced by deducting from the obligations the sum of (as determined by the Corporation)—“(A) 90 percent of each of—“(i) the average principal outstanding for the calendar year on the guaranteed portions of Federal government-guaranteed loans made by the bank that are in accrual status; and“(ii) the average amount outstanding for the calendar year of the guaranteed portions of Federal government-guaranteed investments made by the bank that are not permanently impaired; and“(B) 80 percent of each of—“(i) the average principal outstanding for the calendar year on the guaranteed portions of State government-guaranteed loans made by the bank that are in accrual status; and“(ii) the average amount outstanding for the calendar year of the guaranteed portions of State government-guaranteed investments made by the bank that are not permanently impaired.”;(5) in paragraph (3) (as so redesignated by paragraph (3) of this subsection), by striking “annual”; and(6) in paragraph (4) (as so redesignated by paragraph (3) of this subsection)—(A) in the paragraph heading, by inserting “or investments” after “loans” ; and(B) in the matter preceding subparagraph (A), by striking “As used” and all that follows through “guaranteed—” and inserting “In this section, the term ‘government-guaranteed’, when applied to a loan or an investment, means a loan, credit, or investment, or portion of a loan, credit, or investment, that is guaranteed—”.(b) Amount in Fund Exceeding Secure Base Amount.—Section 5.55(b) of such Act (12 U.S.C. 2277a-4(b)) is amended by striking “annual”.122 STAT. 1156(c) Secure Base Amount.—Section 5.55(c) of such Act (12 U.S.C. 2277a-4(c)) is amended—(1) by striking “For purposes” and inserting the following:“(1) In general.—For purposes”;(2) by striking “(adjusted downward” and all that follows through “by the Corporation)” and inserting “(as adjusted under paragraph (2))”; and(3) by adding at the end the following:“(2) Adjustment.—The aggregate outstanding insured obligations of all insured System banks under paragraph (1) shall be adjusted downward to exclude an amount equal to the sum of (as determined by the corporation)—“(A) 90 percent of each of—“(i) the guaranteed portions of principal outstanding on Federal government-guaranteed loans in accrual status made by the banks; and“(ii) the guaranteed portions of the amount of Federal government-guaranteed investments made by the banks that are not permanently impaired; and“(B) 80 percent of each of—“(i) the guaranteed portions of principal outstanding on State government-guaranteed loans in accrual status made by the banks; and“(ii) the guaranteed portions of the amount of State government-guaranteed investments made by the banks that are not permanently impaired.”.(d) Determination of Loan and Investment Amounts.—Section 5.55(d) of such Act (12 U.S.C. 2277a-4(d)) is amended—(1) in the subsection heading, by striking “Principal Outstanding” and inserting “Loan and Investment Amounts”;(2) in the matter preceding paragraph (1), by striking “For the purpose” and all that follows through “made—” and inserting “For the purpose of subsections (a) and (c), the principal outstanding on all loans made by an insured System bank, and the amount outstanding on all investments made by an insured System bank, shall be determined based on—”;(3) in each of paragraphs (1), (2), and (3), by inserting “all loans or investments made” before “by” the first place it appears; and(4) in each of paragraphs (1) and (2), by inserting “or investments” after “that is able to make such loans” each place it appears.(e) Allocation to System Institutions of Excess Reserves.—Section 5.55(e) of such Act (12 U.S.C. 2277a-4(e)) is amended—(1) in paragraph (3), by striking “the average secure base amount for the calendar year (as calculated on an average daily balance basis)” and inserting “the secure base amount”;(2) in paragraph (4), by striking subparagraph (B) and inserting the following:“(B) there shall be credited to the allocated insurance reserves account of each insured system bank an amount that bears the same ratio to the total amount (less any amount credited under subparagraph (A)) as—“(i) the average principal outstanding for the calendar year on insured obligations issued by the bank 122 STAT. 1157 (after deducting from the principal the percentages of the guaranteed portions of loans and investments described in subsection (a)(2)); bears to“(ii) the average principal outstanding for the calendar year on insured obligations issued by all insured System banks (after deducting from the principal the percentages of the guaranteed portions of loans and investments described in subsection (a)(2)).”; and(3) in paragraph (6)—(A) in subparagraph (A)—(i) in the matter preceding clause (i), by striking “beginning more” and all that follows through “January 1, 2005”;(ii) by striking clause (i) and inserting the following:“(i) subject to subparagraph (D), pay to each insured System bank, in a manner determined by the Corporation, an amount equal to the balance in the Allocated Insurance Reserves Account of the System bank; and”; and(iii) in clause (ii)—(I) by striking “subparagraphs (C), (E), and (F)” and inserting “subparagraphs (C) and (E)”; and(II) by striking “, of the lesser of—” and all that follows through the end of subclause (II) and inserting “at the time of the termination of the Financial Assistance Corporation, of the balance in the Allocated Insurance Reserves Account established under paragraph (1)(B).”;(B) in subparagraph (C)—(i) in clause (i), by striking “(in addition to the amounts described in subparagraph (F)(ii))”; and(ii) by striking clause (ii) and inserting the following:“(ii) Termination of account.—On disbursement of an amount equal to $56,000,000, the Corporation shall—“(I) close the account established under paragraph (1)(B); and“(II) transfer any remaining funds in the Account to the remaining Allocated Insurance Reserves Accounts in accordance with paragraph (4)(B) for the calendar year in which the transfer occurs.”; and(C) by striking subparagraph (F).