106 STAT. 4132 PUBLIC LAW 102-552—OCT. 28, 1992

SEC. 608. REPEAL OF PROHIBITION AGAINST GUARANTEE OF CER.
TAIN INSTRUMENTS OF INDEBTEDNESS.

Section 4.16 (12 U.S.C. 2204) is repealed.
SEC. 509. COMPENSATION OF BANK DIRECTORS.

Section 4.21 (12 U.S.C. 2209) is amended to read as follows:

"SEC. 421. COMPENSATION OF BANK DIRECTORS.

"(a) IN GENERAL.—The Farm Credit Administration shall mon-
itor the compensation of members of the board of directors of
a System bank received as compensation for serving as a director
of the bank to ensure that the amount of the compensation does
not exceed a level of $20,000 per year, as adjusted to reflect changes
in the Consumer Price Index for all urban consumers published
by the Bureau of Labor Statistics, unless the Farm Credit Adminis-
tration determines that such level adversely affects the safety and
soundness of the bank.

"(b) WAIVER.—The Farm Credit Administration may waive the
limitation prescribed in subsection (a) under exceptional cir-
cumstances, as determined in accordance with regulations promul-
gated by the Farm Credit Administration.".

SEC. 510. CLARIFICATION OF TREATMENT OF FARM CREDIT ADMINIS-
TRATION OPERATING EXPENSES.

Section 5.15(bXD (12 U.S.C. 2250(bXD) is amended—

(1) by inserting ", for purposes of sequestration," after
"regard"; and

(2) by striking "or any other law".

SEC. 511. APPROVAL OF COMPETITIVE CHARTERS.

Section 5.17(a) (12 U.S.C. 2252(a)) is amended by adding at
the end the following new paragraphs:

"(13XA) Subject to subparagraph (B), the Farm Credit
Administration may approve an amendment to the charter
of any institution of the Farm Credit System operating under
title I or II, which would authorize the institution to exercise
lending authority in any territory—

"(i) in the geographic area served by an association
that was reassigned pursuant to section 433 of the Agricul-
tural Credit Act of 1987 (12 U.S.C. 2071 note) (where
the geographic area was a part of the association's territory
as of the date of the reassignment); and

"(ii) in which the charter of an institution that is
not seeking the charter amendment authorizes the institu-
tion to exercise the type of lending authority that is the
subject of the charter request.

"(B) The Farm Credit Administration may approve a char-
ter amendment under subparagraph (A) only on the approval
of—

"(i) the respective boards of directors of the associations
that, if the charter request is approved, would exercise
like lending authority in any of the territory that is the
subject of the charter request;

"(ii) a majority of the stockholders of each association
described in clause (i) voting, in person or by proxy, at
a duly authorized stockholders' meeting; and

"(iii) the respective boards of directors of the Farm
Credit Banks that, if the charter request is approved, would