§ 2011. — Establishment, charters, titles, branches.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC2011]
TITLE 12--BANKS AND BANKING
CHAPTER 23--FARM CREDIT SYSTEM
SUBCHAPTER I--FARM CREDIT BANKS
Sec. 2011. Establishment, charters, titles, branches
(a) Establishment
The banks established pursuant to the merger of each District
Federal Intermediate Credit Bank and Federal Land Bank (hereinafter
referred to in this subchapter as ``Farm Credit Banks''), as provided in
section 410 of the Agricultural Credit Act of 1987, shall be Federally
chartered instrumentalities of the United States.
(b) Charters
The Farm Credit Administration shall, consistent with this chapter,
issue charters for, and approve amendments to charters of, the Farm
Credit Banks.
(c) Title
Each Farm Credit Bank may include in its title the name of the city
in which it is located or other geographical designation.
(d) Branches
Each Farm Credit Bank may establish such branches or other offices
as may be appropriate for the effective operation of its business.
(Pub. L. 92-181, title I, Sec. 1.3, as added Pub. L. 100-233, title IV,
Sec. 401, Jan. 6, 1988, 101 Stat. 1622; amended Pub. L. 100-399, title
IV, Sec. 401(a), (b), Aug. 17, 1988, 102 Stat. 995.)
References in Text
Section 410 of the Agricultural Credit Act of 1987, referred to in
subsec. (a), is section 410 of Pub. L. 100-233, which is set out as a
note below.
Prior Provisions
A prior section 2011, Pub. L. 92-181, title I, Sec. 1.3, Dec. 10,
1971, 85 Stat. 583; Pub. L. 100-233, title VIII, Sec. 802(a), Jan. 6,
1988, 101 Stat. 1710, related to establishment, title, and branches of
Federal land banks prior to the general amendment of this subchapter by
Pub. L. 100-233, Sec. 401.
Amendments
1988--Subsec. (a). Pub. L. 100-399, Sec. 401(a), inserted ``, as
provided in section 410 of the Agricultural Credit Act of 1987,'' before
``shall''.
Subsec. (b). Pub. L. 100-399, Sec. 401(b), amended subsec. (b)
generally. Prior to amendment, subsec. (b) read as follows: ``The
charters or organization certificates of Farm Credit Banks may be
modified from time to time by the Farm Credit Administration Board, not
inconsistent with the provisions of this subchapter, as may be necessary
or expedient to implement this chapter.''
Effective Date of 1988 Amendment
Amendment by Pub. L. 100-399 effective immediately after amendment
made by section 401 of Pub. L. 100-233, which was effective 6 months
after Jan. 6, 1988, see section 1001(b) of Pub. L. 100-399, set out as a
note under section 2002 of this title.
Effective Date
Section 401 of Pub. L. 100-233 provided that this subchapter is
effective 6 months after Jan. 6, 1988.
Long-Term Lending Authority of Farm Credit Bank of Texas With Respect to
States of Alabama, Louisiana, and Mississippi
Pub. L. 102-552, title IV, Sec. 401(b), Oct. 28, 1992, 106 Stat.
4128, provided that:
``(1) In general.--Notwithstanding any other provision of law, the
Farm Credit Bank of Texas may act in accordance with the exclusive
charter of the bank, as amended by the Farm Credit Administration on
February 7, 1989, and effective February 9, 1989 (except to the extent
that the charter may be further amended by the Farm Credit
Administration in accordance with its general authorities under the Farm
Credit Act of 1971 (12 U.S.C. 2001 et seq.), subject to such limitations
on the issuance of competitive charters as may be provided in section
5.17 of such Act (12 U.S.C. 2252)).
``(2) Effective date.--Paragraph (1) shall take effect as if such
paragraph had become law on February 7, 1989.''
Mandatory Merger of System Institutions
Section 410 of Pub. L. 100-233, as amended by Pub. L. 100-399, title
IV, Sec. 402, Aug. 17, 1988, 102 Stat. 999; Pub. L. 102-552, title IV,
Sec. 401(a), Oct. 28, 1992, 106 Stat. 4116, provided that:
``(a) In General.--Not later than 6 months after the date of the
enactment of this section [Jan. 6, 1988], the Federal land bank and the
Federal intermediate credit bank of each Farm Credit System district
shall merge into a Farm Credit Bank in such district pursuant to a plan
of merger agreed on by the Boards of Directors of such banks and
approved by the Farm Credit Administration, or if such banks fail to
agree, a plan of merger prescribed by the Farm Credit Administration.
The mergers required by this section shall be implemented without regard
to title VII [enacting sections 2279aa to 2279aa-14 of this title,
amending sections 2012, 2033, 2072, and 2093 of this title, section 1988
of Title 7, Agriculture, and section 9105 of Title 31, Money and
Finance, and enacting provisions set out as notes under section 2279aa
of this title and section 1988 of Title 7].
``(b) Capital Stock.--Notwithstanding section 1.6 (as added by
section 401 of this Act) [12 U.S.C. 2014], the number of shares of
capital stock issued by a Farm Credit Bank to stockholders and other
owners of the institution involved in the merger, and the rights and
privileges of such shares (including voting power, redemption rights,
preferences on liquidation, and the right to dividends) shall be
determined by the plan of merger adopted by the merging banks, and shall
be consistent with section 4.3A [12 U.S.C. 2154a] and the regulations
issued by the Farm Credit Administration.
``(c) Assistance.--The Assistance Board established under section
6.0 [12 U.S.C. 2278a] shall direct the Financial Assistance Corporation
established under section 6.20 [12 U.S.C. 2278b] to provide any Farm
Credit Bank with that amount of financial assistance as is necessary to
ensure that the stock of the Farm Credit Bank, upon implementation of
the merger, has a book value equal to 75 percent of par, and such Farm
Credit Bank shall be subject to all of the requirements of title VI of
the Farm Credit Act of 1971 [12 U.S.C. 2278a et seq.].
``(d) Initial Board.--Notwithstanding section 1.4 (as added by
section 401 of this Act) [12 U.S.C. 2012], the initial board of each
Farm Credit Bank shall be composed of the members of the district board
(which is dissolved upon the creation of such bank) elected by the
production credit associations, Federal land bank associations, and
stockholders at large. Such initial board shall operate for such term as
is agreed to by the members of the board, except that such period shall
not exceed two years. Thereafter the board shall be elected and serve in
accordance with the provisions of section 1.4 of the Farm Credit Act of
1971 [12 U.S.C. 2012].
``(e) Clarification of Authority Regarding Remaining Federal
Intermediate Credit Bank.--
``(1) Negotiated merger.--
``(A) Requirement.--
``(i) In general.--Not later than June 30, 1993, except
as provided in subparagraph (C), the Federal Intermediate
Credit Bank of Jackson (as chartered on the date of
enactment of this subsection [Oct. 28, 1992]) shall merge
with a Farm Credit Bank pursuant to the procedures
prescribed by section 7.12 of the Farm Credit Act of 1971
(12 U.S.C. 2279f).
``(ii) Merger of entire bank.--Notwithstanding
subparagraph (B), or any other provision of law, the Farm
Credit Administration shall approve a merger of the Federal
Intermediate Credit Bank of Jackson only if the Bank (as
chartered on the date of enactment of this subsection [Oct.
28, 1992], except as provided in subparagraph
(B)(ii)(II)(bb)) merges in its entirety with a Farm Credit
Bank.
``(iii) Limited lending authority.--Notwithstanding any
provision of the Farm Credit Act of 1971 (12 U.S.C. 2001 et
seq.), the Farm Credit Bank resulting from a merger under
this subsection shall have only the lending authorities in
the States of Alabama, Louisiana, and Mississippi that the
constituent banks exercised in such States immediately prior
to the merger, except as may be provided in section
5.17(a)(2) of such Act (12 U.S.C. 2252(a)(2)).
``(B) Operating and merger authority.--
``(i) In general.--Except as provided in clause (ii),
the Federal Intermediate Credit Bank of Jackson may operate
subject to such provisions of part A of title II of the Farm
Credit Act of 1971 [12 U.S.C. 2071 et seq.] (as in effect
immediately before the amendment made by section 401 took
effect) and such provisions of the Farm Credit Act of 1971
(12 U.S.C. 2001 et seq.) (as in effect after the amendment),
as the Farm Credit Administration deems appropriate to carry
out the purposes of this subsection and such Act. This
subparagraph shall take effect as if it had become law at
the same time as the amendment made by section 401 and shall
remain in effect until the Bank's merger with a Farm Credit
Bank under this subsection, or July 1, 1994, whichever is
sooner.
``(ii) Limitation on operating authority.--
``(I) In general.--Notwithstanding clause (i) and subparagraph
(A)(ii), the authority of the Federal Intermediate
Credit Bank of Jackson to operate as provided under
clause (i) shall expire, and the Farm Credit
Administration shall revoke the Bank's charter,
immediately on the Bank's merger with a Farm Credit Bank
under this subsection, or July 1, 1994, whichever is
sooner.
``(II) District boundary modification.--Notwithstanding clause
(i), the authority of the Federal Intermediate Credit
Bank of Jackson shall not include the authority for the
Bank to modify, nor shall the Farm Credit Administration
approve such a modification to, the boundaries of the
Fifth Farm Credit District to reaffiliate any portion of
the District with another Farm Credit Bank, except--
``(aa) in the case of the merger of the entire
Bank as an entity with a Farm Credit Bank such that
the entire chartered territory of the Federal
Intermediate Credit Bank of Jackson (except as
provided in item (bb)) is merged with the Farm
Credit Bank; and
``(bb) in the case of the reaffiliation of the
Northwest Louisiana Production Credit Association
with another farm credit district pursuant to the
Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.) and
any applicable regulations under such Act.
``(iii) Limitation on authority to merge.--
``(I) In general.--Notwithstanding clause (i), the authority
of the Federal Intermediate Credit Bank of Jackson to
merge with a Farm Credit Bank as provided under clause
(i) shall expire, and the Farm Credit Administration
shall revoke the Bank's charter, immediately on the
Bank's merger with a Farm Credit Bank under this
subsection, or July 1, 1994, whichever is sooner.
``(II) Bank integrity.--Notwithstanding clause (i), the
authority of the Federal Intermediate Credit Bank of
Jackson to merge with a Farm Credit Bank shall be
limited to a merger of the Federal Intermediate Credit
Bank of Jackson (as chartered on the date of enactment
of this subsection [Oct. 28, 1992] to include the
territory in the States of Alabama, Louisiana, and
Mississippi, except as provided in clause (ii)(II)(bb))
as a whole entity such that the entire chartered
territory of the Federal Intermediate Credit Bank of
Jackson is merged with the Farm Credit Bank.
``(III) Limitation.--Beginning on the date of an order issued
by the Farm Credit Administration under subparagraph
(D), the authority of the Federal Intermediate Credit
Bank of Jackson to merge with a Farm Credit Bank shall
be limited to the arbitrated merger provided for in
paragraph (2).
``(C) Extension.--
``(i) Letter of intent.--If no later than June 30, 1993,
the Federal Intermediate Credit Bank of Jackson delivers to
the Farm Credit Administration a letter of intent to merge
with a Farm Credit Bank, summarizing the terms and
conditions of the merger (including, but not limited to,
board composition, capital structure, exchange, or transfer
of equities, and termination) signed by the chief executive
officer and the members of the boards of directors of the
Federal Intermediate Credit Bank of Jackson and the Farm
Credit Bank, the Farm Credit Administration shall, on its
determination that the letter of intent represents a bona
fide good faith agreement in principle between the two banks
to merge, and that there is at least a reasonable prospect
that the merger will be completed in an expeditious manner,
grant a one-time extension, until a date certain not later
than October 31, 1993, of the requirement under subparagraph
(A). Any extension provided under this subparagraph may be
conditioned on such terms and conditions as the Farm Credit
Administration determines necessary to ensure that the
merger described in the letter of intent is completed by the
closing date of the extension.
``(ii) Compliance.--If the Farm Credit Administration
grants an extension under clause (i), it shall issue an
order under subparagraph (D) immediately if--
``(I) the Federal Intermediate Credit Bank of Jackson, or the
Farm Credit Bank that is a signatory to the letter of
intent under clause (i), provides written notification
to the Farm Credit Administration that the bank does not
intend to complete the merger described in the letter of
intent;
``(II) the Farm Credit Administration determines that the
Federal Intermediate Credit Bank of Jackson is not
complying with any term or condition on which an
extension under clause (i) was conditioned; or
``(III) the Farm Credit Administration determines that the
Federal Intermediate Credit Bank of Jackson is not
pursuing in good faith the merger provided for in the
letter of intent.
If the Farm Credit Administration issues an order under
subparagraph (D) pursuant to this clause, the Federal
Intermediate Credit Bank of Jackson shall be deemed to have
failed to comply with the requirements of subparagraph (A).
``(D) Failure to merge; issuance of order.--If the Federal
Intermediate Credit Bank of Jackson fails to comply, or notifies
the Farm Credit Administration in writing that it does not
intend to comply, with the requirements of subparagraph (A), the
Farm Credit Administration shall, within 5 days after the date
specified in subparagraph (A), or such other date specified by
the Farm Credit Administration under subparagraph (C), issue,
notwithstanding any other provision of law, an order requiring
the Federal Intermediate Credit Bank of Jackson to merge with
the Farm Credit Bank of Texas in accordance with paragraph (2).
``(2) Arbitrated merger.--
``(A) In general.--Not later than 30 days after the issuance
of an order by the Farm Credit Administration under paragraph
(1)(D), an arbitrator (or panel of arbitrators) shall be named
by the American Arbitration Association in accordance with the
Commercial Arbitration Rules of the American Arbitration
Association to serve as the arbitrator referred to in this
paragraph.
``(B) Duties.--The arbitrator shall determine the terms and
conditions of the merger required under an order issued under
paragraph (1)(D), such that the terms and conditions are fair
and equitable to the two banks, their affiliated associations,
the stockholders and borrowers of the associations, and the
other institutions of the Farm Credit System, and are designed
to protect or enhance the safety and soundness of the Farm
Credit System. The arbitrator shall have the authority to hire
staff and secure the services of consultants as necessary to
discharge the duties of the arbitrator under this paragraph.
``(C) Expenses.--Notwithstanding any other provision of law,
the compensation and expenses of the arbitrator, the fees and
expenses of the American Arbitration Association, and any
expenses associated with the referendum required under
subparagraph (F) shall be paid from the Farm Credit Assistance
Fund established under section 6.25 of the Farm Credit Act of
1971 (12 U.S.C. 2278b-5).
``(D) Development of merger plans.--
``(i) In general.--Not later than 100 days after the
issuance of an order by the Farm Credit Administration under
paragraph (1)(D), the arbitrator shall develop and submit
for certification to the Farm Credit Administration a plan
specifying the terms and conditions of the merger of the two
banks required under this paragraph, such that the terms and
conditions are fair and equitable to the two banks, their
affiliated associations, the stockholders or farmer-
borrowers of the associations, and the other institutions of
the Farm Credit System, and are designed to protect or
enhance the safety and soundness of the Farm Credit System.
In devising the plan, the arbitrator shall, to the extent
practicable, achieve the following objectives:
``(I) Implementation of the preferences expressed by the
affected and interested parties in submissions under
clause (ii).
``(II) Valuation of assets fairly, equitably, and consistently
for all parties involved.
``(III) Establishment of capitalization and funding terms in a
manner that treats farmer-borrowers and stockholders in
the two involved farm credit districts equitably and
takes account of risk.
``(IV) Ensure the viability of the resulting Farm Credit Bank
and associations of the bank and the ability of the
resulting bank and associations of the bank to lend to
eligible borrowers at reasonable and competitive rates
of interest.
``(ii) Submission of views and information.--The
arbitrator shall receive from affected and interested
parties written submissions, in accordance with fair and
reasonable procedures established by the arbitrator,
regarding the terms and conditions of an appropriate plan
for the merger of the two banks required under this
paragraph. The Federal Intermediate Credit Bank of Jackson,
the Farm Credit Bank of Texas, and their affiliated
associations shall make available all books, records,
financial information, and other material that the
arbitrator determines is necessary to the development of the
plan or the fulfillment of any other requirement under this
paragraph. A copy of any submission or information provided
to the arbitrator by any party under this paragraph shall be
furnished to the Federal Intermediate Credit Bank of Jackson
or the Farm Credit Bank of Texas on the written request of
the bank and at the bank's expense. The arbitrator shall
provide both banks with a reasonable opportunity to review
and respond to any submission or information provided by any
party.
``(iii) Content of plan; farm credit bank.--The plan
developed and submitted under clause (i) shall include
provisions regarding the following matters:
``(I) The initial composition, following the merger, of the
board of directors of the resulting Farm Credit Bank
(which shall be subject to change thereafter in
accordance with the Farm Credit Act of 1971 (12 U.S.C.
2001 et seq.) and any applicable regulations).
``(II) The valuation, for purposes of the merger, of the
assets and liabilities of the merging banks.
``(III) The terms and conditions on which the shares of
capital stock of the Federal Intermediate Credit Bank of
Jackson and, if necessary, the Farm Credit Bank of
Texas, will be converted into shares of the resulting
Farm Credit Bank.
``(IV) The capital structure and capitalization levels of the
resulting Farm Credit Bank and the affiliated
associations of the Farm Credit Bank in the States of
Alabama, Louisiana, and Mississippi as the arbitrator
determines necessary to carry out the purposes of this
paragraph (which shall be subject to change thereafter
in accordance with the Farm Credit Act of 1971 (12
U.S.C. 2001 et seq.) and any applicable regulations).
``(V) The terms of financing agreements between any production
credit associations or agricultural credit associations
described in clause (iv), and the resulting Farm Credit
Bank (which shall be subject to change thereafter in
accordance with the Farm Credit Act of 1971 (12 U.S.C.
2001 et seq.) and any applicable regulations).
``(VI) Any other terms and conditions or other matters that
the arbitrator considers necessary.
``(iv) Content of plan; agricultural credit
associations.--If the arbitrator determines that the
chartering of agricultural credit associations in the States
of Alabama, Louisiana, and Mississippi will be in the best
interests of the farmers, ranchers, and aquatic producers
eligible to borrow from Farm Credit System associations, the
plan required under this subparagraph shall also include,
based on submissions from the Federal Intermediate Credit
Bank of Jackson and the Farm Credit Bank of Texas,
provisions for the establishment of agricultural credit
associations to operate in the States, subject to approval
in the referendum under subparagraph (F). Such provisions
shall include provisions regarding the following matters:
``(I) A proposal for the establishment of an agricultural
credit association in each of the geographic areas
specified in subparagraph (F)(iii) (the charters of
which, if validly issued under subparagraph (G)(i)
pursuant to approval in the referendum under
subparagraph (F), shall be subject to change thereafter
in accordance with the Farm Credit Act of 1971 (12
U.S.C. 2001 et seq.) and any applicable regulations).
``(II) The initial composition, if the proposal for the
establishment of agricultural credit associations is
approved, of the board of directors of each such
agricultural credit association (which shall be subject
to change thereafter in accordance with the Farm Credit
Act of 1971 (12 U.S.C. 2001 et seq.) and any applicable
regulations).
``(III) The valuation, for purposes of the proposed merger of
the production credit association and the Federal land
bank association in each of the geographic areas
specified in subparagraph (F)(iii), of the assets and
liabilities of the associations.
``(IV) The terms and conditions on which the shares of capital
stock of any associations that may merge under the plan
to form agricultural credit associations will be
converted into shares of the resulting agricultural
credit associations.
``(V) The capital structure and capitalization levels of the
resulting Farm Credit Bank and such affiliated
associations of the Farm Credit Bank in the States of
Alabama, Louisiana, and Mississippi as the arbitrator
determines necessary to carry out the purposes of this
paragraph (which capital structure and capitalization
levels shall be subject to change thereafter in
accordance with the Farm Credit Act of 1971 (12 U.S.C.
2001 et seq.) and any applicable regulations).
``(VI) The terms of financing agreements between any
agricultural credit associations and the resulting Farm
Credit Bank (which shall be subject to change thereafter
in accordance with the Farm Credit Act of 1971 (12
U.S.C. 2001 et seq.) and any applicable regulations).
``(VII) Any other terms and conditions or other matters that
the arbitrator considers necessary.
``(v) Consultation with insurance corporation.--The
arbitrator shall consult with the Farm Credit System
Insurance Corporation regarding the valuation of the assets
and liabilities under the plan of merger, the capitalization
of the Farm Credit System institutions resulting under the
plan, and any other matters relevant to the assistance to be
provided by the Insurance Corporation to facilitate the
merger under subparagraph (H).
``(E) Certification of plan.--Not later than 30 days after
the receipt of the plan developed by the arbitrator, the Farm
Credit Administration shall--
``(i) certify; or
``(ii) recommend to the arbitrator revisions to the plan
that, if incorporated into the plan, will allow the Farm
Credit Administration to certify,
that the resulting bank and any resulting associations are proposed
to be organized in such a fashion that they will, on
implementation of the plan, operate in compliance with
applicable laws and regulations. The arbitrator and the Farm
Credit Administration shall work cooperatively to ensure the
expeditious issuance of the certification. If the Farm Credit
Administration recommends to the arbitrator revisions to the
plan that, if incorporated into the plan, will allow the Farm
Credit Administration to certify the plan, the arbitrator shall,
not later than 15 days after receipt of the recommended
revisions, incorporate the revisions into the plan as the
arbitrator deems appropriate to secure the certification.
``(F) Referendum on association structure.--
``(i) In general.--Not later than 170 days after the
issuance of an order by the Farm Credit Administration under
paragraph (1)(D), the American Arbitration Association shall
conduct, and compile and forward to the Farm Credit
Administration the results of, a vote of current farmer-
borrowers of the production credit associations and the
Federal land bank associations in the States of Alabama,
Louisiana, and Mississippi, in accordance with the Election
Rules of the American Arbitration Association, to determine
whether the farmer-borrowers of each association in the
geographic areas described in clause (iii) prefer to have
credit delivered--
``(I) in the case of production credit association farmer-
borrowers, through a production credit association or
through an agricultural credit association as proposed
in the plan; and
``(II) in the case of Federal land bank association farmer-
borrowers, through a Federal land bank association or
through an agricultural credit association as proposed
in the plan.
Each farmer-borrower shall be entitled to one vote. The
arbitrator shall establish record dates and other procedures
for conducting the referendum. The Federal Intermediate
Credit Bank of Jackson, the Farm Credit Bank of Texas, and
their affiliated associations shall cooperate in the conduct
of the referendum, as determined necessary by the
Arbitrator.
``(ii) Disclosure.--The arbitrator shall send to farmer-
borrowers eligible to vote under this subparagraph, with
their ballot, a statement describing the potential
consequences to the farmer-borrowers, and to the
associations from which they borrow, of voting to charter an
agricultural credit association and setting forth factors
that farmer-borrowers should consider relevant to the choice
between credit delivery through the current association
structure and the chartering of an agricultural credit
association. The arbitrator shall develop the disclosure
materials in cooperation with the Farm Credit Administration
and ensure that the materials are not inconsistent with
applicable laws and regulations.
``(iii) Tabulation of results.--The results of the vote
under this subparagraph shall be compiled separately for
production credit association farmer-borrowers and Federal
land bank association farmer-borrowers in each of the
following seven geographic areas:
``(I) The area served by the Federal Land Bank Association of
South Mississippi.
``(II) The area served by the Federal Land Bank Association of
North Mississippi.
``(III) The area served by the Federal Land Bank Association
of South Alabama.
``(IV) The area served by the Federal Land Bank Association of
North Alabama.
``(V) The area served by the Federal Land Bank Association of
South Louisiana.
``(VI) The area served by both the Federal Land Bank
Association of North Louisiana and the First South
Production Credit Association.
``(VII) The area served by both the Federal Land Bank
Association of North Louisiana and the Northwest
Louisiana Production Credit Association.
``(iv) Publication of results.--The results of the vote
under this subparagraph, as tabulated by the American
Arbitration Association, shall be made promptly available to
the public in a manner determined appropriate by the Farm
Credit Administration.
``(G) Implementation.--Not later than 10 days after the date
of the receipt of the results of the referendum conducted under
subparagraph (F), the Farm Credit Administration shall issue
such charters or charter amendments and take such other
regulatory actions as may be necessary to implement the merger
or mergers as provided for under the certified plan. In this
regard, the Farm Credit Administration shall--
``(i) issue a charter or charter amendment and take any
such other regulatory actions as may be necessary to provide
for the establishment of an agricultural credit association
in each of the geographic areas described in subparagraph
(F)(iii) where a majority of the farmer-borrowers of both
the production credit association and the Federal land bank
association voted under subparagraph (F)(i) that they
preferred to have credit delivered through an agricultural
credit association (which charter shall be subject to change
thereafter in accordance with the Farm Credit Act of 1971
(12 U.S.C. 2001 et seq.) and any applicable regulations);
and
``(ii) not issue a charter or charter amendment or take
any such other regulatory action to provide for the
establishment of an agricultural credit association in any
of the geographic areas described in subparagraph (F)(iii)
where less than a majority of the farmer-borrowers of the
production credit association or the Federal land bank
association voted in the referendum under subparagraph
(F)(i) that they preferred to have credit delivered through
an agricultural credit association (provided that the
charter of any remaining association in such geographic area
shall be subject to change thereafter in accordance with the
Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.) and any
applicable regulations).
``(H) Facilitation.--
``(i) In general.--Beginning on the date of the issuance
of an order by the Farm Credit Administration under
paragraph (1)(D), the Farm Credit System Insurance
Corporation shall expend amounts from the Farm Credit
Insurance Fund to the extent necessary to facilitate the
merger prescribed in the plan.
``(ii) Maintenance of book value.--Assistance provided
by the Corporation under this subparagraph shall be in
amounts not to exceed that required to maintain book value
per share of stockholders' equity at the same value
reflected on the most recent audited financial statements of
the Federal Intermediate Credit Bank of Jackson and the Farm
Credit Bank of Texas prior to or effective with the date of
the merger.
``(iii) Other assistance.--Until the expiration of 5
years from the effective date of a merger authorized by this
subsection, or the final resolution of any litigation
against the Federal Intermediate Credit Bank of Jackson or
any of its stockholders pending on the date of the enactment
of this subsection [Oct. 28, 1992], whichever is later, the
Corporation shall guarantee prompt payment of any loss
experienced by the merged bank, which loss is caused by the
failure of any association-stockholder of the merged bank
that was a stockholder of the Federal Intermediate Credit
Bank of Jackson immediately prior to the merger, or any
successor to the association, to pay when due any obligation
of principal or interest owed by the association or its
successor to the resulting bank.
``(iv) Terms and conditions.--Assistance provided by the
Corporation under this subparagraph shall be on such terms
and conditions as the Corporation deems appropriate to
facilitate the merger.
``(I) Safety and soundness.--
``(i) In general.--Except as provided in clause (ii), if
at any time prior to the completion of the merger required
under this subsection the Farm Credit Administration
determines that the Federal Intermediate Credit Bank of
Jackson is being operated in an unsafe or unsound manner (as
determined in accordance with the Farm Credit Act of 1971
(12 U.S.C. 2001 et seq.)), the Farm Credit Administration,
after consultation with the respective boards of directors
of the affected banks and taking into consideration the
purposes of this subsection, may require the Federal
Intermediate Credit Bank of Jackson to merge with a Farm
Credit Bank, subject to such terms and conditions as the
Farm Credit Administration may prescribe. The Farm Credit
System Insurance Corporation shall expend amounts in the
Farm Credit Insurance Fund to the extent necessary to
facilitate the merger prescribed under this subparagraph,
including the provision of assistance as provided in section
5.61(a)(2)(A)(iii) of the Farm Credit Act of 1971 (12 U.S.C.
2277a-10(a)(2)(A)(iii)), on such terms and conditions as the
Corporation deems appropriate.
``(ii) Arbitrated merger.--If at any time after the Farm
Credit Administration issues an order under paragraph
(1)(D), but prior to the completion of the merger required
under this subsection, the Farm Credit Administration
determines that the Federal Intermediate Credit Bank of
Jackson is being operated in an unsafe or unsound manner (as
determined in accordance with the Farm Credit Act of 1971
(12 U.S.C. 2001 et seq.)), the Farm Credit Administration
shall, after consultation with the boards of directors of
the Federal Intermediate Credit Bank of Jackson and the Farm
Credit Bank of Texas, take such action as it deems necessary
pursuant to the authorities provided under the Farm Credit
Act of 1971 (12 U.S.C. 2001 et seq.) to return the operation
of the Federal Intermediate Credit Bank of Jackson to a safe
and sound condition, pending the completion of the merger
under paragraph (2).
``(J) Merger plan for agricultural credit associations.--In
any of the States of Alabama, Louisiana, or Mississippi where
all of the associations are chartered as agricultural credit
associations, the boards of directors of each such association
in each State are encouraged to submit to the farmer-borrowers
of each such association for their approval a plan for merging
the associations into one statewide agricultural credit
association, in accordance with the applicable provisions of the
Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.).
``(K) Definitions.--As used in this paragraph:
``(i) Agricultural credit association.--The term
`agricultural credit association' means an association
having the same authorities, attributes, and obligations as,
and for all purposes an agricultural credit association
resulting from the implementation of the plan under this
paragraph shall be deemed to be, an association resulting
from the merger of a production credit association and a
Federal land bank association under section 7.8 of the Farm
Credit Act of 1971 (12 U.S.C. 2279c-1).
``(ii) Farmer-borrower.--The term `farmer-borrower'
means a borrower from a Farm Credit System association in
the State of Alabama, Louisiana, or Mississippi who holds
voting stock, or is eligible to hold voting stock, in the
association or a stockholder in any such association.
``(3) Review.--
``(A) In general.--Actions and determinations of the
arbitrator, the Farm Credit Administration, or the Farm Credit
System Insurance Corporation pursuant to this subsection shall
not be subject to judicial review except as provided in this
paragraph, nor shall they be subject to the requirements of
subchapter II of chapter 5 or chapter 7 of title 5, United
States Code.
``(B) Agency determinations.--
``(i) In general.--Any petition for review of a
determination or other action of the Farm Credit
Administration or the Farm Credit System Insurance
Corporation under this subsection shall be filed in the
United States Court of Appeals for the District of Columbia
Circuit not later than 10 days after the determination, or
the petition shall be barred. The court shall have exclusive
jurisdiction to determine the proceeding in accordance with
standard procedures as supplemented by procedures
hereinafter provided and no other district court or court of
appeals of the United States shall have jurisdiction over
any such challenge in any proceeding instituted prior to,
on, or after the date of enactment of this subsection. The
review of any determination or action of the Farm Credit
Administration or the Farm Credit System Insurance
Corporation under this subsection shall be based on the
examination of all of the information before the Farm Credit
Administration or the Farm Credit System Insurance
Corporation, as the case may be, at the time the
determination was made. The court reviewing the
determination or action shall not enter a stay or order of
mandamus unless the court has determined, after notice and a
hearing before a panel of the court, that the agency action
complained of was arbitrary, capricious, an abuse of
discretion, or otherwise not in accordance with law.
``(ii) Procedures.--Notwithstanding any other provision
of law, the court may set rules governing the procedures of
any such proceeding that set page limits on briefs and time
limits for filing briefs and motions and other actions that
are shorter than the limits specified in the Federal Rules
of Civil or Appellate Procedure.
``(iii) Expedited review.--Any such proceeding before
the court shall be assigned for hearing and completed at the
earliest possible date, and shall be expedited in every way.
The court shall render its final decision relative to any
challenge not later than 50 days from the date the challenge
is brought unless the court determines that a longer period
of time is required to satisfy the requirements of the
Constitution.
``(C) Arbitrator determinations.--
``(i) In general.--Except as otherwise provided in this
paragraph, any petition for review of a determination or
other action of the arbitrator named under paragraph (2)
shall be filed in accordance with the United States
Arbitration Act (9 U.S.C. 1 et seq.). Such Act shall apply
to the arbitration conducted pursuant to paragraph (2) to
the same extent as if the arbitration were established in a
contract evidencing a transaction in commerce between the
Federal Intermediate Credit Bank of Jackson and the Farm
Credit Bank of Texas.
``(ii) Procedures.--Notwithstanding the United States
Arbitration Act (9 U.S.C. 1 et seq.), any petition for
review of a determination or other action of the arbitrator
under this subsection shall be filed not later than 10 days
after the determination, or the petition shall be barred.
The court specified under such Act shall have exclusive
jurisdiction to determine the proceeding in accordance with
the applicable procedures under such Act, as supplemented by
procedures hereinafter provided, and no other district court
shall have jurisdiction over any such challenge in any such
proceeding. Notwithstanding any other provision of law, the
court may set rules governing the procedures of any such
proceeding that set page limits on briefs and time limits
for filing briefs and motions and other actions that are
shorter than the limits specified in the United States
Arbitration Act or the Federal Rules of Civil or Appellate
Procedure [28 App. U.S.C.].
``(iii) Expedited review.--Any such proceeding before
the court shall be assigned for hearing and completed at the
earliest possible date, and shall be expedited in every way.
The court shall render its final decision relative to any
challenge as soon as possible in accordance with the United
States Arbitration Act (9 U.S.C. 1 et seq.), or not later
than 30 days from the date the challenge is brought,
whichever is sooner, unless the court determines that a
longer period of time is required to satisfy the
requirements of the Constitution.''