§2279aa–11 Supervision, examination, and report of condition

Summary

The Farm Credit Administration must watch over and examine the Corporation and any companies it controls through a new Office of Secondary Market Oversight. The Board must set up that office not later than 180 days after December 13, 1991. The Administration can use certain existing supervisory powers, including those in part C of subchapter V and the authority that starts beginning 6 months after December 13, 1991. When it acts, the Administration must keep in mind why the Corporation was created, proper practices for secondary markets in farm loans, and the lower risk of well-structured secondary market deals. The Administration’s examiners must review the Corporation’s financial transactions under commercial rules, inspect all books and records, and verify transactions with the facilities and others the Corporation works with. Exams must happen as the Board decides but at least once each year. The Corporation must publish an annual report with financial statements prepared under generally accepted accounting principles and audited by an independent public accountant. The Administration may bill the Corporation for the cost of these regulatory activities. An “affiliate” means an entity the Corporation effectively controls, but not an originator. The Board must staff the office with enough trained people and, when practical, use staff who do not supervise the Farm Credit banks and associations.