Page:United States Statutes at Large Volume 101 Part 3.djvu/290

 101 STAT. 1588 12 USC 2278a-4.

PUBLIC LAW 100-233—JAN. 6, 1988

"SEC. 6.4. CERTIFICATION OF ELIGIBILITY TO ISSUE PREFERRED STOCK. "(a) BOOK VALUE LESS THAN PAR VALUE OF STOCK AND EQUITIES.—

If the book value of the stock, participation certificates, and other similar equities of a System institution, based on generally accepted accounting principles, is less than the par value of the stock or the face value of the certificates or equities— "(1) the Farm Credit Administration shall notify the Assistance Board of such impairment; "(2) the Assistance Board shall monitor the financisd condition, business plans, and operations of the institution; and "(3) the institution may request the Assistance Board to grant certification to issue preferred stock under section 6.27(a). "(b) BOOK VALUE LESS THAN 75 PERCENT OF PAR VALUE OF STOCK

AND EQUITIES.—If the book value of the stock, participation certificates, and other similar equities of a System institution, based on generally accepted accounting principles, is less than 75 percent of the par value of the stock or the face value of the certificates or equities, the institution shall request the Assistance Board to grant certification to issue preferred stock under section 6.27(a). "(c) MANDATORY DETERMINATION OF ELIGIBILITY.—

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12 USC 2278a-5.

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"(1) IN GENERAL.—The Assistance Board shall determine whether to certify a System institution as eligible to issue preferred stock under section 6.27, if— b0i "(A) the institution requests such certification; "(B) the book value of the stock, participation certificates, ^-' and other similar equities of the institution, based on gen^^iB erally accepted accounting principles, has declined to 75 percent of the par value of the stock or the face value of the ii»> t^. certificates or equities; and "(C) the institution agrees to meet the terms and conditi-i ra:? tions specified by the Assistance Board pursuant to section 6.6. "(2) EFFECTIVE DATE OF CERTIFICATION.—If the determination of the Assistance Board is to certify the institution under ' * paragraph (1), such certification shall be effective at the time of such determination. "(c) IMPLEMENTATION.—As soon as practicable after the date of the enactment of this title, the Assistance Board shall take such actions as are necessary to carry out this section. "(d) DEFINITION.—Except where otherwise provided in this Act, the term 'other similar equities' includes allocated equities. "SEC. 6.5. ASSISTANCE.

"(a) IN GENERAL.—The Assistance Board shall assist an institution that has been certified under section 6.4 by— "(1) authorizing the institution to issue preferred stock under •• '^^ the appropriate provision of section 6.27, in amounts necessary to maintain the book value of stock, participation certificates, V,-- and other similar equities of the institution, at the level provided for in subsection (c); "(2) in the case of high-cost debt for which the institution is primarily liable, authorizing the institution to issue preferred stock under the appropriate provision of section 6.27, in an amount equal to the premium that would be required by the holder of the debt for the institution to retire the debt at the then current market value; . ,,, - ... ..^j

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