Agricultural Credit Technical Corrections Act of 1988

(Measure passed House, amended)

Agricultural Credit Technical Corrections Act of 1988 - Title I: Amendments Related to Title I of the 1987 Act - Makes technical amendments to the Farm Credit Act of 1971, as amended by the Agricultural Credit Act of 1987 (the Act).

Repeals statutory authority for the Farm Credit System (FCS) reserve fund.

Provides that if an FCS institution is unable to retire its stock at par value due to liquidation, the Financial Assistance Corporation shall provide the receiver with the necessary funds to retire such stock at par value for the first five years, after which the Farm Credit Insurance Fund shall continue such assistance. (Current law provides assistance solely through the Financial Assistance Corporation.)

Makes technical amendments to provisions of the Act regarding: (1) distressed loan restructuring; and (2) reconsideration of loan reduction or restructuring denials.

Increases to 30 days (currently, 15 days) the time period in which a previous owner may offer to repurchase FCS-held property. Decreases to 15 days (currently, 30 days) the time period in which an FCS institution must make such sale.

Title II: Amendments Relating to Title II of the 1987 Act - Makes technical amendments to the Act regarding: (1) the Farm Credit System Assistance Board; (2) the Farm Credit System Financial Assistance Corporation; (3) the availability of the revolving fund to provide initial assistance to the Farm Credit Administration and the Assistance Board and then the FCS insurance fund; and (4) regulatory accounting.

Provides for the succession of the assets, liabilities, contracts, and stock of the Federal Farm Credit Banks Funding Corporation to the new Corporation.

Authorizes the board of directors of the predecessor Federal Farm Credit Banks Funding Corporation to temporarily continue as the board of directors of the Financial Assistance Corporation until a majority of such Corporation's board of directors are elected.

Title III: Amendments Related to Title III of the 1987 Act - Makes technical amendments to FCS institution capitalization provisions of the Act.

Revises the definition of insured obligation to cover all FCS bonds until the new insurance provisions (FCS insured banks) become effective on January 5, 1989.

Repeals the provision prohibiting FCS insurance premiums from being deposited into the Insurance Fund for five years.

Revises the provisions of such Act with respect to minimum borrower stock percentages.

Title IV: Amendments Related to Title IV of the 1987 Act - Makes technical amendments to Farm Credit Banks (FCBs) provisions of the Act.

Permits FCBs to make long-term real estate loans and provide other financial assistance and discounts to Federal land bank associations.

Repeals the requirement that boards of directors be elected from among the voting stockholders.

Revises the provisions of such Act with respect to authorizing FCBs to lease equipment to borrowers.

Authorizes FCBs to pass along insurance premium costs to other FCS institutions in the same district.

Changes the date for the required vote on association merger from six months to 12 months after enactment of this Act.

Authorizes a production credit association in a district having only two such associations to extend its lending authority to borrowers denied credit by the other association if the Farm Credit Administration Board determines that such other association is unduly restrictive in its credit standards.

Repeals the provision providing a procedure for liquidating Federal land bank associations.

Makes technical corrections to FCS institution merger provisions, including: (1) the exemption from State or local tax of merger transactions; and (2) the inclusion of FCBs in the merger of FCS districts.

Requires that the third member of the board of directors of a consolidated bank for cooperatives shall be nominated and elected in accordance with the bylaws of such bank.

Requires each consolidated bank for cooperatives to provide for the capitalization of such bank.

Extends the $15,000 salary limit to members of the board of directors of FCBs.

Changes to three years (currently, five years) the time period that each Federal land bank association must be examined by the Farm Credit Administration.

Title V: Amendments Related to Title V of the 1987 Act - Makes technical amendments to State mediation program provisions of the Act.

Title VI: Amendments Related to Title VII of the 1987 Act - States that national banking associations may purchase and hold Federal Agricultural Mortgage Corporation (FAMC) stock.

Repeals FAMC authority to adopt standards regarding secondary market securities requirements.

Authorizes the Secretary of Agriculture to contract under the guaranteed loan secondary market program of the Farmers Home Administration without regard to Titles 5, 40, and 41 of the U.S. Code.

Makes technical amendments to agricultural mortgage secondary market provisions of the Act.

Title VII: Amendments Related to Title VIII of the 1987 Act - Makes technical amendments to provisions of the Act regarding: (1) loan restructuring; and (2) borrowers' rights.

Title VIII: Amendments Related to Title IX of the 1987 Act - Makes technical amendments to provisions of the Act relating to regulations.

Title IX: Other Amendments to the Farm Credit Act of 1971 - Amends the Farm Credit Act of 1971 to revise banks for cooperatives' board of directors provisions.

Makes technical amendments to provisions of the Act regarding: (1) banks for cooperatives; (2) FCS institutions; and (3) the Farm Credit Administration.

Title X: Effective Dates - Makes the provisions of this Act effective as if enacted immediately after the enactment of the Agricultural Credit Act of 1987, with specified exceptions.