Page:United States Statutes at Large Volume 101 Part 1.djvu/630

 101 STAT. 600 12 USC 1727.

PUBLIC LAW 100-86—AUG. 10, 1987 \^^'' '^'

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established pursuant to section 404(aj as such earnings are realized by the Corporation and shall not be treated as amounts in the account. «^g^ RETIREMENT OF CAPITAL STOCK USING BALANCE IN

ACCOUNT.—Upon maturity of all obligations of the Financing Corporation under section 21 of the Federal Home Loan Bank Act, the Corporation shall pay off and retire any capital stock issued under paragraph (IXAXii) using only amounts accumulated in the equity return account. "(F) RESERVES-TO-ACCOUNTS RATIO DEFINED.—For purposes

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of this paragraph, the term 'reserves-to-accounts ratio' means, with respect to any year, the amount determined by dividing— "(i) the amount of reserves of the Corporation (deter-•i;/ *' mined as of December 31 of the preceding year); by "(ii) the aggregate amount of all accounts of all of its insured members (determined as of such date). "(3) FINANCING CORPORATION DEFINED.—For purposes of this subsection, the term 'Financing Corporation' means the Financing Corporation established under section 21 of the FedereJ Home Loan Bank Act. "(4) No REDUCTION OR SUSPENSION OF INSURANCE PREMIUMS

WHILE STOCK IS OUTSTANDING.—Notwithstanding any other provision of law, the provisions of subsections (b)(2) and (g) of section 404 shall not apply as long as any share of capital stock issued under paragraph (IXAXii) is outstanding.". 12 USC 1727.

SEC. 305. FSLIC AUTHORITY TO CHARGE PREMIUMS REDUCED BY AMOUNT OF FINANCING CORPORATION ASSESSMENTS. Section 404 of the National Housing Act is amended by adding at the end thereof the following new subsection: "(j) AUTHORITY TO CHARGE PREMIUMS REDUCED BY AMOUNT OF FINANCING CORPORATION ASSESSMENTS.—Notwithstanding any other

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provision of this section, the sum of— "(1) the amount of any premium required to be paid by any insured institution under subsection (b)(D; and "(2) the amount of any premium authorized to be assessed by the Corporation under subsection (c) with respect to such institution, for any period shall be reduced by the amount of any assessment paid for such period by such insured institution to the Financing Corporation pursuant to section 21(f) of the Federal Home Loan Bank Act.". SEC. 306. MISCELLANEOUS PROVISIONS. (a) FEDERAL HOME LOAN BANK DIVIDENDS.—Section 16 of

the

Federal Home Loan Bank Act (12 U.S.C. 1436) is amended by adding at the end thereof the following new subsection: "(c) EXCEPTION IN CASE OF LOSSES IN CONNECTION WITH FINANCING CORPORATION STOCK.—

"(1) IN GENERAL.—Notwithstanding subsection (a) of this section, if— "(A) a Federal Home Loan Bank incurs a chargeoff or an • ^ expense in connection with such bank's investment in the JW L stockof the Financing Corporation under section 21;

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