106 STAT. 4132 PUBLIC LAW 102-552—OCT. 28, 1992 SEC. 508. REPEAL OF PROHIBinON AGAINST GUARANTEE OF CER* TAIN INSTRUMENTS OF INDEBTEDNESS. Section 4.16 (12 U.S.C. 2204) is repealed. SEC. 509. COMPENSATION OF BANK DIRECTORa Section 4.21 (12 U.S.C. 2209) is amended to read as follows: •SEC. 4.21. COMPENSATION OF BANK DIRECTORS. "(a) IN GENERAL.— The Farm Credit Administration shall monitor 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 a4justed to reflect changes in the Consumer Price Index for all urban consumers published by the Bureau of Labor Statistics, unless the Farm Credit Administration determines that such level adversely affects the safety and soundness of the bank. "(b) WAIVER.— The Farm Credit Administration may waive the Hmitation prescribed in subsection (a) under exceptional circumstances, as determined in accordance with regulations promulgated by the Farm Credit Administration. ". SEC. 510. CLARIFICATION OF TREATMENT OF FARM CREDIT ADMINIS- TRATION OPERATING EXPENSES. Section 5.15(b)(l) (12 U.S.C. 2250(b)(l)) is amended— (1) by inserting ", for purposes of sequestration," after "regard"; and (2) by striking "or any other law". SEC. 51L 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 1 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 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) in which the charter of an institution that is not seeking the charter amendment authorizes the institution to exercise the type of lending authority that is the subject of the charter request. "(B) The Farm Credit Administration may approve a charter 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
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