Page:United States Statutes at Large Volume 101 Part 3.djvu/319

 PUBLIC LAW 100-233—JAN. 6, 1988

101 STAT. 1617

"(A) to prevent the placing of the bank in receivership; "(B) to restore the bank to normal operation; or "(C) to reduce the risk to the Corporation posed by the bank when severe financial conditions threaten the stability of a significant number of insured System banks or of insured System banks possessing significant financial resources. "(2) ENUMERATED POWERS.— "(A) FACILITATION OF MERGERS OR CONSOUDATION.—To

facilitate a merger or consolidation of a qualifying insured System bank, the sale of assets of such insured System bank to another insured System bank, the assumption of such insured System bank's liabilities by such other insured System bank, or the acquisition of the stock of such insured System bank by such other insured System bank, the Corporation, in its sole discretion and on such terms and conditions as the Board of Directors may prescribe, may— "(i) purchase any such assets or assume any such liabilities; "(ii) make loans or contributions to, or purchase debt securities of, such other insured System bank; "(iii) guarantee such other insured System bank against loss by reason of such other insured System bank's merging or consolidating with, or assuming the liabilities and purchasing the assets of, such insured System bank; or "(iv) take any combination of the actions referred to in the preceding clauses.

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"(B) QUALIFYING INSURED SYSTEM BANK.—For purpOSeS of

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subparagraph (A), the term 'qualifying insured System bank' means any insured System bank that— "(i) is in receivership; "(ii) is, in the judgment of the Board of Directors, in danger of being placed in receivership; or "(iii) is, in the sole discretion of the Corporation, an insured System bank that, when severe financial conditions exist that threaten the stability of a significant number of insured System banks or of insured System banks possessing significant financial resources, re' quires assistance under subparagraph (A) to lessen the risk to the Corporation posed by such insured System bank under such threat of instability. "(3) LIMITATION.—

"(A) COST OF LIQUIDATION.—Assistance shall not be pro-

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vided to an insured System bank under this subsection if the amount of such assistance exceeds an amount determined by the Corporation to be the cost of liquidating the bank (including paying the insured obligations issued on behalf of the bank). This subparagraph shall not apply to the provision of assistance to a bank if the Corporation determines that the continued operation of the bank is essential to provide adequate agricultural credit services in the area of operations of the bank. "(B) PURCHASE OF STOCK.—The Corporation may not use its authority under this subsection to purchase any stock of an insured System bank. The preceding sentence shall not be construed to limit the ability of the Corporation to enter

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