PUBLIC LAW 102-552—OCT. 28, 1992 106 STAT. 4133

exercise, either directly or through associations, like lend-
ing authority in any of the territory described in subpara-
graph (A)(i).

"(14)(A) Subject to subparagraph (B), the Farm Credit
Administration may approve a request to charter an association
of the Farm Credit System to operate under title II where
the proposed charter—

"(i) will include any of the geographic area included
in the territory served by an association that was
reassigned pursuant to section 433 of the Agricultural
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) will authorize the association to exercise lending
authority in any territory in the geographic area in which
the charter of an association that is not requesting the
charter authorizes the association 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 request 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 vote of the stockholders (if any) 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
exercise, either directly or through associations, like lend-
ing authority in any of the territory described in subpara-
graph (A)(i).".

SEC. 512. EXAMINATIONS.

The third sentence of section 5.19(a) (12 U.S.C. 2254(a)) is
amended by striking "shall include" and inserting "may include,
if appropriate".

SEC. 513. AUTHORITY TO EXAMINE SYSTEM INSTITUTIONS.

(a) AUTHORITY OF FARM CREDIT SYSTEM INSURANCE CORPORA-
TION.—Section 5.59 (12 U.S.C. 2277a-8) is amended—

(1) in the section heading, by striking "INSURED SYSTEM
BANKS" and inserting "SYSTEM INSTITUTIONS"; and

(2) by striking subsection (b) and inserting the following
new subsection:

"(b) EXAMINATION OF SYSTEM INSTITUTIONS.—
"(1) EXAMINATION AUTHORITY.—

"(A) IN GENERAL.—If the Board of Directors considers
it necessary to examine an insured System bank, a produc-
tion credit association, an association making direct loans
under the authority provided under section 7.6, or any
System institution in receivership, the Board may, using
Farm Credit Administration examiners, conduct the
examination using reports and other information on the
System institution prepared or held by the Farm Credit
Administration.