Page:United States Statutes at Large Volume 101 Part 3.djvu/304

 101 STAT. 1602 '.r.

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PUBLIC LAW 100-233—JAN. 6, 1988 "(4) PAYMENT BY UNITED STATES.— "(A) INABILITY TO PAY.—Notwithstanding any other provi-

sion of this Act, if the Financial Assistance Corporation is unable to pay the principal or interest of any obligation issued under subsection (a), the Secretary of the Treasury shall pay to the Financial Assistance Corporation the amount due which shall be used by the Financial Assistance Corporation to pay the obligation. "(B) RECOVERY.— "(i) INTEREST PAYMENTS.—In each instance in which

the Secretary of the Treasury is required to make a payment under subparagraph (A) to the Financial Assistance Corporation as a result of a default made by a System institution on interest due from such System institution under subsection (c), the Secretary of the Treasury shall recover the amount of the payments the Secretary made, with respect to each defaulting institution, from such defaulting institution. If the Secretary has not recovered the full amount due from the defaulting institution by the end of the 12-month period beginning on the date of payment by the Secretary, the uncollected amount shall be paid to the Secretary from the Insurance Fund established under section 5.60. "(ii) PRINCIPAL PAYMENTS.—In each instance in which the Secretary of the Treasury is required under paragraph (BXBXiii) to purchase preferred stock issued by a System institution under section 6.27(a), the Farm Credit System Insurance Corporation shall use funds deposited in the Insurance Fund to repurchase, at par value, from the Secretary of the Treasury such stock required to be purchased under paragraph (3)(B)(iii) as funds become available for such repurchase. "(iii) PRIORITY.—Notwithstanding any other provision of this Act except for section 5.60, during any year in which payments are due to the Secretary of the Treasury from the Insurance Fund under clause (i), or preferred stock held by the Secretary is due to be repurchased by the Insurance Fund under clause (ii), the funds in such Fund, and all funds deposited in such Fund during such year, shall be used first for the purposes specified in clauses (i) and (ii). 12 USC 2278b-7. "SEC. 6.27. PREFERRED STOCK. "(a) ISSUANCE.—

"(1) IN GENERAL.—Each System institution that is certified under section 6.4 (a) or O> may issue a special class of preferred t) stock only in an amount, and subject to such terms and conditions, as authorized by the Assistance Board. "(2) DIVIDENDS.—

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"(A) IN GENERAL.—Except as provided in subparagraph (B), dividends shall not be payable on stock issued under this section. "(B) EXCEPTION.—Stock issued under this section shall be issued under such terms and conditions as to enable the Secretary of the Treasury, with respect to any of such stock the Secretary purchases under section 6.26(d)(3)(B)(iii), and the Reserve Account Board, with respect to any of such

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