A bill to amend the Federal Deposit Insurance Act to authorize the issuance of net worth certificates by banks which recognize losses on portions of agricultural loans as part of a restructuring of such loans to the extent of the recognition of such losses.
Agricultural Lenders Capital Assistance Act of 1986 - Amends the Federal Deposit Insurance Act to authorize the Federal Deposit Insurance Corporation to purchase net worth certificates of any qualified institution which recognizes a qualified loss on an agricultural loan, provided that the total amounts of net worth certificates shall not exceed: (1) the total qualified losses of the institution; or (2) five percent of the total assets of the institution.
Prohibits a qualified institution from increasing the rate of pay or benefits provided to any officer or director during any period in which the institution has outstanding net worth certificates.
Requires a qualified institution to reduce the amount of outstanding certificates by any portion of the principal amount of an agricultural loan with respect to which the institution recognized a qualified loss that is repaid by the borrower.
Amends the Garn-St Germain Depository Institutions Act of 1982 to extend the Net Worth Certificate Act by three years.
Introduced in House
Introduced in House
Referred to House Committee on Banking, Finance and Urban Affairs.
Referred to Subcommittee on Financial Institutions Supervision, Regulation and Insurance.
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