110 STAT. 176 PUBLIC LAW 104-105—FEB. 10, 1996 (ii) by striking "for the following calendar year"; and (iii) by striking "subsection (a)" and inserting "subsection (a)(1)". (B) Section 5.56(a) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-5(a)) is amended by striking "section 5.55(a)(2)" each place it appears in paragraphs (2) and (3) and inserting "section 5.55(a)(3)". (C) Section 1.12(b) (12 U.S.C. 2020(b)) is amended— (i) in paragraph (1), by inserting "(as defined in section 5.55(a)(3))" after "government-guaranteed loans"; and (ii) in paragraph (3), by inserting "(as so defined)" after "government-guaranteed loans" each place such term appears. (b) ALLOCATION TO INSURED SYSTEM BANKS AND OTHER SYSTEM INSTITUTIONS OF EXCESS AMOUNTS IN THE FARM CREDIT INSURANCE FUND. —Section 5.55 of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4) is amended by adding at the end the following: " (e) ALLOCATION TO SYSTEM INSTITUTIONS OF EXCESS RESERVES.— " (1) ESTABLISHMENT OF ALLOCATED INSURANCE RESERVES ACCOUNTS.— There is hereby established in the Farm Credit Insurance Fund an Allocated Insurance Reserves Account— "(A) for each insured System bank; and "(B) subject to paragraph (6)(C), for all holders, in the aggregate, of Financial Assistance Corporation stock. "(2) TREATMENT. —Amounts in emy Allocated Insurance Reserves Account shall be considered to be part of the Farm Credit Insurance Fund. " (3) ANNUAL ALLOCATIONS. —I f, at the end of any calendar year, the aggregate of the amounts in the Farm Credit Insurance Fund exceeds the average secure base amount for the .... calendar year (as calculated on an average daily balance basis), the Corporation shall allocate to the Allocated Insurance Reserves Accounts the excess amount less the amount that the Corporation, in its sole discretion, determines to be the sum of the estimated operating expenses and estimated insurance obligations of the Corporation for the immediately succeeding calendar year. "(4) ALLOCATION FORMULA.— From the total amount required to be allocated at the end of a calendar year under paragraph (3)— "(A) 10 percent of the total amount shall be credited to the Allocated Insurance Reserves Account established under paragraph (1)(B), subject to paragraph (6)(C); and "(B) there shall be credited to the Allocated Insurance Reserves Account of each insured System bank an amount that bears the same ratio to the total amount (less any amount credited under subparagraph (A)) as the average principal outstanding for the 3-year period ending on the end of the calendar year on loans made by the bank that are in accrual status bears to the average principal outstanding for the 3-year period ending on the end of the calendar year on loans made by all insured System banks that are in accrual status (excluding, in each case,
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