Page:United States Statutes at Large Volume 101 Part 3.djvu/301

 PUBLIC LAW 100-233—JAN. 6, 1988

101 STAT. 1599

tions possess the financial viability to make such payments, except that such institutions shall not be required to begin making such payments until the obligations issued under subsection (d)(l)(C) have been fully repaid. "(C) TERMS OF PAYMENTS.—

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"(i) IN GENERAL.—The institutions of the Farm Credit System shall make interest payments at such levels, and on such dates, as the Farm Credit Administration determines appropriate, except that the Farm Credit Administration shall not set payment levels or dates that would jeopardize the financial viability of any such institution, "(ii) LIMITATIONS.—The institutions of the Farm Credit System shall not be required to make such repayments in a manner that— "(I) impairs the stock of such institution; or "(II) jeopardizes the minimum capital requirements of the institution, "(iii) UNCOLLATERAUZED OBLIGATION.—Obligations to make repayments under this paragraph shall not be required to be collateralized.

"(d) REFINANCING AND PAYMENT OF PRINCIPAL.— "(1) IN GENERAL.— "(A) TIME OF REPAYMENT.—On maturity of an obligation

issued under subsection (a), the obligation shall be repaid by the Financial Assistance Corporation. "(B) PAYMENTS BY INSTITUTIONS.—Except as provided in

subparagraph (C), in order to enable the Financial Assistance Corporation to repay the obligation referred to in subparagraph (A), each institution that issued preferred stock under section 6.27(a) with respect to such obligation (or the successor thereto) shall pay to the Financial Assistance Corporation, before the maturity date of such obligation, an amount equal to the par value of such stock outstanding for such institution. "(C) SYSTEMWIDE REPAYMENT.—In order to enable the Financial Assistance Corporation to repay the obligations referred to in section 410(c) of the Agricultural Credit Act of 1987, each System institution shall pay to the Financial Assistance Corporation a proportion of such principal equal to— "(i) the average performing loan volume of the bank for the preceding 15 years; divided by "(ii) the average performing loan volume of all of the System banks for the same period. "(D) SPECIAL RULE.—For purposes of determining the average loan volume of Federal intermediate credit banks, loan volume shall consist of loans made by such banks with the exception of loans made to production credit associations. "(E) FUNDS FOR PAYMENTS.—Payments under subpara-

graph (B) shall be made by each such institution from the funds of the institution or from funds raised by the institution through the issuance of debt obligations, which may be issued without a collateral requirement and without any guarantee by the Secretary of the Treasury.

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