108 STAT. 3498 PUBLIC LAW 103-376 —OCT. 19, 1994 amount of the balances outstanding on loans made by a bank under this clause that— "(I) are made to finance the escport of commodities, products, or supplies that are not originally sourced fix>m a cooperative, and (II) are not guaranteed or insured, in an amount equal to at least 95 percent of the amount loaned, by a department, agency, bureau, board, commission, or establishment of the United States or a corporation wholly- owned directly or indirectly by the United States, exceeds an amount that is equal to 50 percent of the bank's capital, then a sufficient interest in the loans shall be sold by the bank for cooperatives to commercial banks and other non-System lenders to reduce the total amount of such outstanding balances to an amount not greater than an amount equal to 50 percent of the bank's capital; and "(ii) except as provided in subparagraph (B), any domestic or foreign party in which an eligible cooperative association described in section 3.8(a) (including, for the purpose of facilitating its domestic business operations only, a cooperative or other entity described in section 3.8(b)(1)(A)) has an ownership interest, for the purpose of facilitating the domestic or foreign business operations of the association, except that if the ownership interest by an eligible cooperative association, or associations, is less tnan 50 percent, the financing shall be limited to the percentage held in the party by the association or associations. "(B) A bank for cooperatives shall not use the authority provided in subparagraph (A)(ii) to provide financial assistance to a party for the purpose of financing the relocation of a plant or facihty troTR the Umted States to smother country.". SEC. 4. CONFORMING AMENDMENT. Section 3.8(b)(1) of the Farm Credit Act of 1971 (12 U.S.C. 2129(b)(1)) is amended— (A) by striking subparagraph (B); (B) by redesignating subparagraphs (C), (D), and (E) as subparagraphs (B), (C), and (D), respectively; and (C) Dy aUgning the mar^ of subparagraph (D) (as so redesignated) so as to align with the margin of subparagraph (C) (as so redesignated). SEC. 5. LOAN PARTICIPATION AUTHORITY FOR FARM CREDIT BANES AND DIRECT LENDER ASSOCIATIONS. IN GENERAL.— Title IV of the Farm Credit Act of 1971 (12 U.S.C. 2151 et seq.) is amended by inserting after section 4.18 (12 U.S.C. 2206) the following new section: 12 USC 2206a. "SEC. 4.18A. AUTHORITY OF FARM CREDIT BANKS AND DIRECT LENDER ASSOCIATIONS TO PARTICIPATE IN LOANS TO SIMILAR ENTITIES FOR RISK MANAGEMENT PURPOSES. "(a) DEFINITIONS.— As used in this section: "(1) PARTICIPATE AND PARTICIPATION. — The terms 'participate' £m.d 'participation' shall have the meaning provided in section 3. l(ll)(B)(iv). "(2) SIMILAR ENTITY.—The term 'similar entity' means a person that—
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