Standards for qualified loans

Section 8.8 of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–8) is amended— (1) in subsection (a)(3), by striking mortgage investors and inserting investors in those types of loans; and (2) by striking subsection (c) and inserting the following: (c) Qualified loan limitation for single borrowers (1) In general The Corporation shall not treat a loan secured by agricultural real estate as a qualified loan whenever the cumulative principal amount of all loans to any single borrower or to any group of related borrowers exceeds 10 percent of the tier 1 capital of the Corporation (as defined by the Farm Credit Administration). (2) Regulator determination The Farm Credit Administration may promulgate regulations establishing a single-borrower concentration limit lower than the percentage specified in paragraph (1) if the Farm Credit Administration determines that a lower limit is necessary for the safe and sound operation of the Corporation..