Page:United States Statutes at Large Volume 101 Part 3.djvu/302

 101 STAT. 1600

PUBLIC LAW 100-233—JAN. 6, 1988 "(2) REFINANCED OBLIGATIONS.—The refinanced obligations issued under paragraph (1) shall be solely the obligations of the institutions refinancing such, and sections 4.3 and 4.4 shall not apply to such obligations.

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"(3) DEFAULTS.— "(A) INTEREST.— "(i) PAYMENT BY CORPORATION.—If

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a System institution defaults on the payment of interest due under this subsection during the first 15 years after an obligation is issued under subsection (a), the Financial Assistance Corporation shall pay the amount of the interest due by the System institution out of the Trust Fund, and shall recover the amount of the interest due from the defaulting System institution, and such amount shall be paid to the Trust Fund. "(ii) PAYMENT BY INSURANCE FUND.—If the Financial

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Assistance Corporation has not recovered the full amount of interest due from a defaulting institution by ^ the end of the 12-month period beginning on the date of ',, ^^ '\ default, such uncollected interest shall be paid to the Trust Fund from the Insurance Fund established under section 5.60, to the full extent of funds available in the Insurance Fund as of the date the Financial Assistance Corporation notified the Farm Credit System Insurance Corporation of amounts due under this section, "(iii) PAYMENT BY REMAINING INSTITUTIONS.—To the ,,,^. extent that the payment from the Insurance Fund is '" insufficient to reimburse the Trust Fund, the remaining balance shall be added to the amount of interest due from remaining System institutions, under this subsection, and each remaining System institution, subject to the special rule provided in subsection (c)(2)(D), shall pay to the Trust Fund a proportion of the uncollected interest equal to— •"""' ' "(I) the amount of the performing loan volume of the institution (based on the average loan volume c.'^t "Mfor the preceding year); divided by "(II) the total performing loan volume of the System. "(B) PRINCIPAL.—

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"(i) EVALUATION.—Not later than 90 days before the maturity of any obligation issued under subsection (a), the Farm Credit Administration shall complete an evaluation of the general financial condition of each System institution that issued preferred stock under section 6.27(a) with respect to such obligation to determine whether such System institution will be able to redeem such stock at par value on the maturity of the obligation, and remain a viable institution capable of providing credit to eligible borrowers at equitable and competitive interest rates. "(ii) AVAILABILITY OF EVALUATION.—A copy of the evaluation required under clause (i) shall be furnished to the Secretary of the Treasury and the appropriate committees of Congress. "(iii) REDEMPTION BY INSTITUTION; PURCHASE BY SECRETARY OF THE TREASURY.—If the Farm Credit Adminis-

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