12 2 STA T . 1 9 2 0PUBLIC LA W 110 – 2 46—J U NE 1 8, 2008 (1)bystrik i ng s u bs ec ti o n( d )
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nd ( 2 ) by redesignating subsection (e) as subsection (d) .SEC.5406 . RU R AL U TI LIT Y L O A N S. (a) DEFIN I T I O NOF QUAL IFIE DL OAN. —S ection 8 . 0 ( 9 )o f t h e F ar mC redit A ctof19 7 1 (12 U .S.C. 2279aa(9)) is amended— (1) in sub p aragraph (A)(iii) , by striking ‘ ‘or ’ ’ at the end; (2) in subparagraph ( B )(ii), by striking the period at the end and inserting ‘‘; or’’; and ( 3 ) by adding at the end the fo l lo w ing
‘‘(C) that is a loan, or an interest in a loan, for an electric or telephone facility by a cooperati v e lender to a borrower that has received, or is eligible to receive, a loan under the R ural E lectrification Act of 193 6 (7 U.S.C. 901 et se q .).’’. (b) G UA R ANTEE OF QUALIFIED LOAN S .—Section 8.6(a)(1) of such Act (12 U.S.C. 2279aa – 6(a)(1)) is amended by inserting ‘‘applicable’’ before ‘‘standards’’ each place it appears in subparagraphs (A) and (B)(i). (c) STANDARDS FOR QUALIFIED LOANS.—Section 8.8 of such Act (12 U.S.C. 2279aa–8) is amended— (1) in subsection (a)— (A) by striking the first sentence and inserting the following: ‘‘(1) I N G ENERAL.— T he Corporation shall establish under - writing, security appraisal, and repayment standards for quali- fied loans taking into account the nature, risk profile, and other differences between different categories of qualified loans. ‘‘(2) SU P ER V ISION, E X A M INATION, AND REPORT OF C ONDI- TION.—The standards shall be sub j ect to the authorities of the Farm Credit Administration under section 8.11.’’; and (B) in the last sentence, by striking ‘‘In establishing’’ and inserting the following: ‘‘(3) M ORTGAGE LOANS.—In establishing’’; (2) in subsection (b)— (A) in the matter preceding paragraph (1), by inserting ‘‘with respect to loans secured by agricultural real estate’’ after ‘‘subsection (a)’’; and (B) in paragraph ( 5 )— (i) by striking ‘‘borrower’’ the first place it appears and inserting ‘‘farmer or rancher’’; and (ii) by striking ‘‘site’’ and inserting ‘‘farm or ranch’’; (3) in subsection (c)(1), by inserting ‘‘secured by agricultural real estate’’ after ‘‘A loan’’; ( 4 ) by striking subsection (d); and (5) by redesignating subsection (e) as subsection (d). (d) RIS K -BASED CAPITAL LEVELS.—Section 8.32(a)(1) of such Act (12 U.S.C. 2279bb–1(a)(1)) is amended— (1) by striking ‘‘ W ith respect’’ and inserting the following: ‘‘(A) IN GENERAL.—With respect’’; and (2) by adding at the end the following: ‘‘(B) RURAL UTILIT Y LOANS.—With respect to securities representing an interest in, or obligation backed by, a pool of qualified loans described in section 8.0(9)(C) owned or guaranteed by the Corporation, losses occur at a rate of default and severity reasonably related to risks in electric
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