Statement of Administration Policy: H.R. 3298 - Farm Credit Banks and Associations Safety and Soundness Act of 1991

(House)
(de la Garza (D) Texas)

Since H.R. 3298 no longer contains directed scorekeeping provisions, the Administration has no objection to House passage of the bill. This bill improves current law by accelerating Farm Credit System (FCS) assessments to repay taxpayer contributions for the rescue of the system in 1987. While not objecting to House passage of the bill, the Administration will continue to seek amendments to:

• Clarify the Funding Corporation's authority to set conditions for establishing financial standards and economic incentives for participation of Farm Credit Banks in FCS debt issuances. Such conditions could include financial standards and risk-based pricing of system-wide obligations. (The Funding Corporation is the FCS-wide entity responsible for coordinating systemwide debt issuance.)
  
  
• Add the Administration's proposals to establish risk-based insurance premiums, eliminate potential conflicts of interest between the boards of the Insurance Corporation and the Farm Credit Administration, and give the Insurance Corporation authority to access FCS association capital. (The Insurance Corporation insures against default on systemwide obligations; the Farm Credit Administration is the FCS regulator.)