Page:United States Statutes at Large Volume 101 Part 1.djvu/629

 PUBLIC LAW 100-86—AUG. 10, 1987

101 STAT. 599

accounts ratio was equal to or greater than 1 percent and the final payoff year (taking into account the first and last year described).

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"(v) AMOUNT OF ADDITIONAL CONTRIBUTION ALLOWED IF RESERVES-TO-ACCOUNTS RATIO DOES NOT EXCEED 1.75

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PERCENT.—In any year in which the reserves-to-accounts ratio is equal to or greater than 1.25 percent but less than 1.75 percent, the Federal Home Loan Bank Board may require the Corporation to make an additional contribution of an amount not to exceed the amount determined by dividing— "(I) the investment return amount computed at an annual compound rate not to exceed 8 percent, minus the sum of any amounts contributed under clause (iv); by "(II) the number of years between the first year beginning after 1996 in which the reserves-toaccounts ratio was equal to or greater than 1.25 percent and the final payoff year (taking into account the first and last year described), "(vi) AMOUNT OF ADDITIONAL CONTRIBUTION ALLOWED IF RESERVES-TO-ACCOUNTS RATIO EXCEEDS 1.75 PERCENT.—

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In any year in which the reserves-to-accounts ratio is equal to or greater than 1.75 percent, the Federal Home Loan Bank Board may require the Corporation to make an additional contribution of an amount not to exceed the amount determined by dividing— "(I) the investment return amount computed at an annual compound rate not to exceed 10 percent, minus the sum of any amounts contributed under clause (iv) or (v); by "(II) the number of years between the first year beginning after 1996 in which the reserves-toaccounts ratio was equal to or greater than 1.75 percent and the final payoff year (taking into account the first and last year described).


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"(vii) FINAL PAYOFF YEAR DEFINED.—For purposes of

this subparagraph, the term 'final payoff year means the year of maturity of the last maturing obligation of the Financing Corporation (which was issued under section 21 of the Federal Home Loan Bank Act and Ante, p. 585. matures before January 1, 2027). "(viii) INVESTMENT RETURN AMOUNT.—For purposes

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of clauses (iv), (v), and (vi), the term 'investment return amount' means the amount which would be realized on the aggregate amount invested by the Financing Corporation in capital stock issued by the Corporation under paragraph (1) over the period of the investment if the return on the investment is computed at the rate described in subclause (I) of the respective clauses. " (C) INVESTMENT OF AMOUNTS IN ACCOUNT.—Amounts

accumulating in the equity return account may be invested in such manner as the Corporation determines. "(D) TRANSFER OF EARNINGS TO PRIMARY RESERVE.—Earn-

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ings accruing on any investment (under subparagraph (O) of amounts in the equity return account shall be transferred to the primary reserve account of the Corporation

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