Page:United States Statutes at Large Volume 101 Part 1.djvu/643

 PUBLIC LAW 100-86—AUG. 10, 1987 •

connection graph (A).

with

the study

required

under

101 STAT. 613 subpara-

(2) CONGRESSIONAL REVIEW.—The Committee on Banking, Fi-

nance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate shall, upon receipt of the report under paragraph (1)(B), review the regulations and recommend such revisions to the regulations as may be appropriate. SEC. 405. CAPITAL INSTRUMENT PURCHASE PROGRAM.

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Section 406(f) of the National Housing Act (12 U.S.C. 1729(f)) is amended by adding at the end thereof the following new paragraph: "(6) CAPITAL INSTRUMENT PURCHASE PROGRAM.—

"(A) IN GENERAL.—Notwithstanding any other provision of Federal law (other than subparagraph (O) and without limitation on any other authority of the Corporation or the Federal Home Loan Bank Board, the Corporation may exercise its authority to purchase capital instruments in the case of any insured institution for which a plan for increasing capital has been approved by the Corporation pursuant to section 416 or by such Board pursuant to section 10 of the Home Owners' Loan Act of 1933. "(B) TERMS AND CONDITIONS.—Except as provided in subpara-

Ante, p. 6ii. Ante, p. 609.

graph (C), the purchase of capital instruments under subparagraph (A) shall be subject to such terms and conditions as the Corporation may prescribe. "(C) WARRANT REQUIREMENT.—

"(i) IN GENERAL.—In the case of an insured institution with capital stock, the Corporation shall require such institution to negotiate with the Corporation warrants for the purchase of shares of stock as a condition for the purchase of capital instruments by the Corporation, on such terms and conditions as the Corporation may prescribe, "(ii) MUTUAL INSTITUTIONS.—If any insured institution— "(I) which is organized on a mutual basis; and "(II) with respect to which the Corporation has purs uo'^ chased capital instruments, >* converts to a stock charter, such insured institution shall comply with the requirements of clause (i) immediately upon such conversion. "(iii) MAXIMUM AMOUNT.—The amount of shares for which warrants are negotiated under subparagraph (A) with respect to any insured institution shall not exceed the total number of shares outstanding at the time such warrants are issued to the Corporation. "(iv) REDEMPTION BY INSURED INSTITUTION.—Upon the full 1 i3r • redemption of the capital instruments by an insured institution, including all accumulated unpaid dividends, the i >•:. Corporation may, at the discretion of the Corporation, tender the warrants for redemption by the insured institution. "(v) PAYMENT ON REDEMPTION.—Upon any redemption of warrants under clause (iv), the insured institution shall pay the Corporation the difference between the fair market c value of the warrants on the date of redemption and the exercise price of such warrants.

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