Page:United States Statutes at Large Volume 101 Part 3.djvu/291

 PUBLIC LAW 100-233—JAN. 6, 1988

101 STAT. 1589

"(3) on a request by the institution, authorizing the issuance of preferred stock under the appropriate provision of section 6.27 to facilitate the merger of the requesting institution with one or more other System institutions; or "(4) providing assistance by such other methods as the Assistance Board determines appropriate. "(b) DEFINITION OF HIGH-COST DEBT.—For purposes of subsection (a)(2), the term 'high-cost debt' means securities or similar obligations issued before January 1, 1986, that mature on or after December 31, 1987, and bear a rate of interest in excess of the then current market rate for similar securities or obligations. "(c) MINIMUM EQUITY VALUE.—The Assistance Board shall authorize a certified institution to issue amounts of preferred stock under the appropriate provision of section 6.27 sufficient to— "(1) maintain the value of stock, participation certificates and other similar equities at no less than 75 percent of the par value of the stock or the face value of the certificates or equities, as determined under generally accepted accounting principles; and "(2) strengthen the institution to a point where it is economically viable, and capable of delivering credit at reasonable and competitive rates. "(d) LIMITATION.—No assistance shall be provided in connection with a merger until the stockholders and the institutions involved have approved the merger and the Farm Credit Administration has given final approval to the merger plan. "SEC. 6.6. SPECIAL POWERS.

"(a) IN GENERAL.—In the case of a System institution that requests certification under section 6.4, the Assistance Board may— "(1) require the institution to obtain approval from the Assistance Board before implementing business, operating, and investment plans and policies; "(2) if one or more of the conditions described in section 4.12(b) are met, as determined by the Farm Credit Administration, direct the Farm Credit Administration Board to appoint a conservator for the institution, in accordance with such section, and to instruct the conservator to evaluate the operations of the institution and report to the Farm Credit Administration Board and the Assistance Board on the possibility of restoring the institution to sound financial condition; "(3) request that the Farm Credit Administration Board or the Farm Credit Administration, as appropriate— "(A) approve or require a merger or consolidation of the •i institution to the extent authorized under this Act; "(B) initiate action to appoint a receiver under section 4.12(b); or "(C) exercise any enforcement power authorized under this Act; "(4) require the institution to obtain approval from the Assistance Board before setting the terms and conditions of any debt issuances of the institution; "(5) require the institution to obtain approval from the Assistance Board before setting the policy on credit standards to be used, and the policy on rates of interest to be charged on loans, by the institution, including requiring that— "(A) the institution set interest rates at levels necessary to ensure that the cost of money to the institution reflects

12 USC 2278a-6.

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