Page:United States Statutes at Large Volume 101 Part 1.djvu/631

 PUBLIC LAW 100-86—AUG. 10, 1987

101 STAT. 601

"(B) the Board determines there is an extraordinary need for the member institutions of the bank to receive dividends; and "(C) the bank has reduced all reserves (other than the reserve account required by the first 2 sentences of subsection (a)) to zero, the Board may authorize such bank to declare and pay dividends out of undivided profits (as such term is defined in section 21(d)(7)) or the reserve account required by the first 2 sentences of subsection (a).

Ante, p. 585.

"(2) REQUIREMENTS OF SECTION 21 NOT AFFECTED.—Notwith-

standing any payment of dividends by any Federal Home Loan Bank pursuant to an authorization by the Board under paragraph (1), the applicable provisions of section 21 shall continue to apply with respect to such bank, and to such bank's investment in the Financing Corporation, in the same manner and to the same extent as if such payment had not been made.". (b) CONFORMING AMENDMENT.—Section 402(h) of the National

Housing Act (12 U.S.C. 1725(h)) is amended— (1) by striking out "After the effective date" and inserting in lieu thereof "(1) After the effective date"; and (2) by adding at the end thereof the following new paragraph: "(2) The first three sentences of paragraph (1) shall not apply to stock issued by the Corporation to the Financing Corporation under subsection (b)(l)(A).". (c) LIMITATION ON SPECIAL ASSESSMENT.—Section 404(c) of the National Housing Act (12 U.S.C. 1727(c)) is amended— (1) by striking out "(c) The Corporation" and inserting in lieu thereof "(c)(1) SPECIAL ASSESSMENT.—Subject to paragraph (2),

the Corporation"; and (2) by adding at the end thereof the following new paragraph: "(2) LIMITATIONS ON AMOUNT OP ASSESSMENT.—The amount of any

additional premium assessed by the Corporation against any insured institution under paragraph (1) in any of the following years shall not exceed the amount listed in connection with each such year in the following table (unless the Federal Home Loan Board determines that severe pressures on the Corporation exist which necessitate an infusion of additional funds): The amount of the additional premium "For yean may not exceed: 1987 %8 of 1 percent of the total amount of the accounts of the insured members of such institution; 1988 yi2 of 1 percent of the total amount of the accounts of the insured members of such institution; 1989 Vie of 1 percent of the total amount of the accounts of the insured members of such institution; 1990 V 4 of 1 percent of the total amount of 4 the accounts of the insured members of such institution; 1991 Vis of 1 percent of the total amount of the accounts of the insured members of such institution.". (d) PRIORFTY OF SECURED INTERESTS.—Section 10 of the Federal

Home Loan Bank Act (12 U.S.C. 1430) is amended by adding at the end thereof the following new subsection:

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