Page:United States Statutes at Large Volume 101 Part 3.djvu/275

 PUBLIC LAW 100-233—JAN. 6, 1988

101 STAT. 1573

"(2) to cancel borrower stock at par value under section 4.14B; or "(3) to apply, against any outstanding indebtedness to a System association arising out of or in connection with a liquidation referred to in subsection (d)(2), the par value of borrower stock frozen in such liquidation. "(c) INABILITY TO RETIRE AT PAR VALUE.—If an institution is unable to retire eligible borrower stock at par value due to the freezing of such stock during a liquidation of the institution, the receiver of the institution shall retire such stock at par value as would have been retired in the ordinary course of business of the institution and the Financial Assistance Corporation, on request of the Assistance Board, shall provide the receiver with sufficient funds to enable the receiver to carry out this subsection. "(d) DEFINITIONS.—For purposes of this section: "(1) BORROWER STOCK.—The term 'borrower stock' means voting and nonvoting stock, equivalent contributions to a guaranty fund, participation certificates, allocated equities, and other similar equities that are subject to retirement under a revolving cycle issued by any System institution and held by any person other than any System institution. "(2) ELIGIBLE BORROWER STOCK.—The term 'eligible borrower stock' means borrower stock that— "(A) is outstanding on the date of the enactment of this section; "(B) is required to be purchased, and is purchased, as a condition of obtaining a loan made after the date of the enactment of this section, but prior to the earlier of— "(i) in the case of each bank and association, the date of approval, by the stockholders of such bank or association, of the capitalization requirements of the institution in accordance with section 4.9B; or "(ii) the date that is 9 months after the date of the enactment of this section; if ~ "(C) was, after January 1, 1983, but before the date of the enactment of this section, frozen by an institution that was placed in liquidation; or "(D) Was retired at less than par value by an institution that was placed in liquidation after January 1, 1983, but before the date of the enactment of this section. "(3) INSTITUTION.—The term 'institution' means a bank or association chartered under this Act. "(4) PAR VALUE.—The term 'par value' means— "(A) in the case of stock, par value; "(B) in the case of participation certificates and other equities and interests not described in subparagraph (C), face or equivalent value; or "(C) in the case of participation certificates and allocated equities subject to retirement under a revolving cycle but that a System institution elects to retire out of order for application against a loan in default or otherwise as provided in this Act, par or face value discounted, at a rate determined by the institution, to reflect the present value of the equity or interest as of the date of such retirement.".

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