Page:United States Statutes at Large Volume 101 Part 3.djvu/292

 101 STAT. 1590


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PUBLIC LAW 100-233—JAN. 6, 1988

the marginal cost to the institution of borrowing an additional amount of money at the time a new loan is made; and V < "(B) loans primarily secured by real estate mortgages not exceed 85 percent of the appraised agricultural value of the ^sis real estate security, or 75 percent of the then current market value of the real estate security, whichever is greater; "(6) require the institution to obtain approval from the Assistance Board for the design of management information and accounting systems at the institution, and of the continued use by the institution of regulatory accounting practices in accordance with sections 4.8(b) and 5.19(b); "(7) require that the plans and policies of the institution resulting from the merger of System banks reduce the overhead costs of such institution, to the maximum extent practicable, with respect to the delivery of services to, and performance of duties for. System associations in the district; "(8) require the institution to obtain approval from the Assistance Board of— "(A) the hiring policies of the institution; "(B) the compensation and retirement benefits of the (" chief executive officer, other managers, and directors of the institution notwithstanding the authority of the Farm Credit Administration to approve such matters under sections 5.5 and 5.17(a)(15); "(C) any change in the management of the institution; and "(D) policy decisions regarding continued employment and promotion of the officials referred to in subparagraph (B); "(9) may suspend for any period of time, or terminate, any certification granted to an institution under section 6.4 if the Farm Credit Administration notifies the Assistance Board that the institution has substantially deviated from the institution's business plan or has failed to comply with a term or condition governing the use of any financial assistance provided to the institution under this title; and "(10) take such other action as the Assistance Board determines may be necessary to establish prudent operating practices at the institution and to return the institution to a sound financial condition, t "(b) SUSPENSION OF ASSISTANCE.—

"(1) NOTIFICATION.—The Assistance Board shall promptly i notify the Farm Credit Administration of any action taken by the Assistance Board under subsection (a)(8). "(2) ENFORCEMENT.—The Farm Credit Administration may use any of its enforcement powers, with respect to any institution to which the Assistance Board has provided assistance or has certified the institution to issue preferred stock under the appropriate provision of section 6.27, to obtain the complismce of the institution with the terms or conditions governing the use of financial assistance provided under this title. "(c) UNDATED LETTERS OF RESIGNATION.—The Assistance Board shall not, for any reason, request or require any member of the board of directors of any System institution to submit to the Assistance Board an undated letter of resignation. Immediately after the

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