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§ 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.''



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