Farm Credit Amendments Act of 1985

(Senate agreed to House amendment with an amendment) Farm Credit Amendments Act of 1985 - Title I: Provisions to Strengthen the Operation of Farm Credit System Lending Institutions - Amends Part A of title IV of the Farm Credit Act of 1971 to merge specified revolving funds and make such funds available to the Farm Credit Administration (FCA) for the purchase on behalf of the United States of stock in the Farm Credit System Capital Corporation (established by this Act). Replaces existing debt-to-capital provisions with authority to maintain adequate capital in Farm Credit System (FCS) institutions. Empowers the FCA to appoint a receiver or conservator for an FCS institution in situations of: (1) insolvency; (2) substantial asset dissipation; (3) unsound conditions; (4) willful violation of a final cease and desist order; or (5) concealment of records. Provides for the charter of a new Farm Credit System Capital Corporation (Corporation) within 60 days. Makes such Corporation a federally chartered instrumentality of the United States and an FCS institution. States that such Corporation shall be reviewed on December 31, 1987, at which time the FCA shall submit a report to the Congress together with any recommendations to extend such Corporation's charter. Directs the Corporation to provide financial and technical assistance to financially-troubled FCS institutions. Sets forth related operating and administrative provisions. States that the Corporation shall assume all assets and debts of the predecessor Corporation. Authorizes the Secretary of the Treasury, upon FCA certification of need, to purchase Corporation obligations in order to assist FCS institutions. Provides initial capitalization through institution contributions. Authorizes the FCA, effective January 1, 1991, to establish a central FCS reserve to be held in the form of Treasury securities and demand deposits. Authorizes the use of such reserve to make temporary deposits and investments in financially-troubled FCS institutions. Capitalizes such reserve through FCS institution contributions based on the proceeds of notes, bonds, or debentures. Provides that the tax status of consolidated obligations will not change because the issuance of such is joined in by the Corporation. Title II: Regulation of Farm Credit System - Amends Part B of title V of the Farm Credit Act to state that the FCA shall be an independent executive agency. Vests management in a Farm Credit Administration Board. Sets forth related operating and administrative provisions, including authority to establish advisory committees. Requires: (1) at least annual examinations of FCS institutions; and (2) each institution to make an annual audit report. Authorizes the FCA to publish reports of such examinations under specified circumstances. Authorizes the FCA to: (1) initiate cease-and-desist and temporary cease-and-desist proceedings against FCS institutions or persons; and (2) initiate proceedings to remove an individual from office or suspend an officer or director in an FCS institution. Sets forth hearing, judicial review, and penalty provisions. Title III: Protection for Farmers and Other Farm Credit System Borrowers - Amends the Farm Credit Act of 1971 to set forth loan disclosure (interest rates, variable loan rates, stock purchases) and access to information provisions (borrower document copies). Provides for a credit review committee. Requires, in cases of voluntary or involuntary association liquidation, that the supervising bank minimize the adverse effects on borrowers whose loans are purchased by other FCS institutions. Prohibits an FCS institution from: (1) separately selling surface (mineral) rights on land acquired by foreclosure; or (2) selling certain land previously securing a loan for less than can be received from the Corporation. Title IV: Implementation Procedures - Makes titles I through III of this Act effective 30 days after their enactment. States that the Governor of the FCA shall perform the functions of the Chairman of the Farm Credit Administration Board until his appointment. Expresses the sense of the Congress that the needs of the U.S. agriculture industry require implementation of this Act as soon as possible. Title V: National Commission on Agricultural Finance - Directs the President to appoint a National Commission on Agricultural Finance to: (1) conduct a study of methods to ensure adequate agricultural credit; and (2) report to the Congress within one year. Title VI: Miscellaneous Amendments - Amends the Farm Credit Act of 1971 to require Federal land banks and associations to carry a reserve account. Subjects Federal intermediate credit banks to the FCA provision regarding dividend payments.

Farm Credit System Restructuring and Regulatory Reform Act of 1985 - Title I: Purposes, Organization, and Powers - Amends the Farm Credit Act of 1971 to vest management of the Farm Credit Administration (FCA) in a Farm Credit Administration Board (replacing the Federal Farm Credit Board), to be headed by a Chairman. Sets forth related operating and administrative provisions. Establishes a Farm Credit Advisory Committee. Requires: (1) FCA examinations of Farm Credit System (FCS) institutions; and (2) each institution to make an annual report. Authorizes the FCA to publish reports of such examinations under specified circumstances. Title II: Regulatory Role of the Farm Credit Administration - Amends the Farm Credit Act to remove certain regulatory powers of the FCA regarding the establishment and regulation of Federal banks. Grants the FCA authority to establish minimum levels of capital for FCS institutions and see that such levels are maintained. Sets forth requirements for voluntary single district-wide association mergers. Allows the Chairman of the FCA to require bank mergers where such banks have failed to meet their outstanding obligations. Grants the Chairman the power to appoint a conservator or receiver for any institution of the FCS. Lists the grounds for such an appointment. Title III: Enforcement Powers and Procedures of the Farm Credit Administration - Amends the Farm Credit Act of 1971 to authorize the Farm Credit Administration (FCA) to issue cease and desist orders against any Farm Credit System institution or director, officer, employee, or agent engaged in an unsafe or unsound practice or in violation of any FCA rule or regulation. Provides for written notice and hearing opportunity. Authorizes the FCA to issue temporary cease and desist orders. Permits U.S. district court appeal. Permits FCA appeal to such court for injunctive enforcement. Authorizes the FCA to remove or suspend any Farm Credit System director or officer who has engaged in unsafe or prohibited practices, is in breach of fiduciary duty, or has been indicted for a felony involving dishonesty or breach of trust. Provides for written notice and hearing opportunity. Establishes procedures for administrative hearings and judicial review. Authorizes the FCA to apply to any U.S. district court with jurisdiction for the enforcement of any outstanding notice or order. Provides for civil penalties of up to $1,000 for violations of final orders or of the provisions of the Farm Credit Act of 1971 or regulations. Makes directors and officers who knowingly violate, or permit others to violate, such Act or regulations personally liable for damages. Title IV: Farm Credit System Capital Corporation - Establishes the Federal Farm Credit System Capital Corporation to ensure the continued viability of the FCS. Describes the powers of the Capital Corporation. States that the Capital Corporation shall have the power to acquire property, debts, and assets of institutions of the FCS. Provides initial capitalization through institution contributions. States that the capital, reserves, surplus, and income derived therefrom shall be tax exempt. Title V: Rights of Applicants and Shareholders - Amends the Farm Credit Act to direct the FCA to promulgate regulations regarding: (1) the disclosure of certain interest rate information to borrowers; (2) access to documents and information for applicants, borrowers, and stockholders; and (3) the establishment of credit review committees. Title VI: Miscellaneous Amendments - Amends the Federal Financial Institutions Examination Council Act of 1978 to provide that the Chairman of the FCA shall serve as a nonvoting member of the Council. Requires Federal land banks and associations to carry a reserve account. Subjects Federal intermediate credit banks to the direction of the FCA with regard to dividend payments. Requires Federal land banks, Federal intermediate credit banks, banks for cooperatives, Federal land bank associations, and production credit associations to purchase stock, pay assessments, and make capital contributions to the Capital Corporation. Title VII: Authorization for Borrowing - Authorizes the Secretary of the Treasury to purchase obligations issued by the Capital Corporation.