§2279aa–11 Supervision, Examination, and Report of Condition

Summary

Gives the Farm Credit Administration the power to examine and supervise the Corporation and its affiliates through a new Office of Secondary Market Oversight. The Administration can use the powers in part C of subchapter V and, starting 6 months after December 13, 1991, the power in section 2252(a)(9) of this title. When acting, the Administration must keep in mind why the Corporation was created, what good secondary market practices look like, and that properly structured secondary market deals usually carry less risk. The Farm Credit Administration Board must create the Office within 180 days after December 13, 1991. The Office must have a full-time Director chosen by and reporting to the Board. Examiners will check the Corporation’s financial transactions under commercial rules. Exams must happen as often as the Board decides, but at least once a year. Examiners get full access to all books, records, reports, files, and anything needed to check dealings, and they can verify transactions with other firms the Corporation works with. The Corporation must publish an annual report with GAAP financial statements and an audit by an independent public accountant, plus any extra information the Administration requires. The Administration may bill the Corporation for the cost of these oversight activities. “Affiliate” means an entity the Corporation owns or controls, but not an originator. The Board must make sure the Office has enough trained staff and, when possible, that different people supervise the Corporation than those who supervise Farm Credit banks and associations.