Page:United States Statutes at Large Volume 101 Part 3.djvu/322

 101 STAT. 1620

PUBLIC LAW 100-233—JAN. 6, 1988 such bank deposits security satisfactory to the Corporation for payment on final determination of the issue. "(c) FAILURE TO FILE STATEMENT OR PAY PREMIUM.—

"(1) IN GENERAL.—Any insured System bank that willfully fails or refuses to file any certified statement or pay any premium required under this part shall be subject to a penalty of not more than $100 for each day that such violations continue, which penalty the Corporation may recover for its use. s' "(2) APPLICABILITY.—This subsection shall not apply to conduct with respect to any default that is due to a dispute between »-? the insured System bank and the Corporation over the amount of such premium if such bank deposits security satisfactory to k 5 the Corporation for payment on final determination of the issue. "(d) EMPLOYMENT OF PERSONS CONVICTED OF CRIMINAL OFFENSES.—

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"(1) IN GENERAL.—Except with the prior written consent of the Farm Credit Administration, it shall be unlawful for any person convicted of any criminal offense involving dishonesty or a breach of trust to serve as a director, officer, or employee of any insured System bank. "(2) PENALTY.—For each willful violation of paragraph (1), the bank involved shall be subject to a penalty of not more than $100 for each day during which the violation continues, which the Corporation may recover for its use.".

SEC. 303. JOINT AND SEVERAL LIABILITY OF BANKS. (a) CLARIFICATION OF JOINT AND SEVERAL LIABILITY.—Subsection

(a) of section 4.4 (12 U.S.C. 2155(a)) is amended to read as follows: "(a)(1) Each bank of the System shall be fully liable on notes, bonds, debentures, or other obligations issued by it individually, and shall iDe liable for the interest payments on long-term notes, bonds, debentures, or other obligations issued by other banks operating under the same title of this Act. "(2)(A) Each bank shall also be primarily liable for the portion of any issue of consolidated or System-wide obligations made on its behalf and be jointly and severally liable for the payment of any additional sums as called upon by the Farm Credit Administration in order to make payments of interest or principal which any bank primarily liable therefor shall be unable to make. "(B) Such calls first shall be made on all nondefaulting banks in proportion to each such bank's proportionate share of the aggregate available collateral held by all such banks. "(C) For purposes of this paragraph, the term 'available collateral' means the amount (determined at the close of the last calendar quarter ending before such call) by which a bank's collateral as described in section 4.3 exceeds the collateral required to support the bank's outstanding notes, bonds, debentures, and other similar obligations. "(D) If the Farm Credit Administration makes any such call and the available collateral of all such banks does not fully satisfy the liability necessitating such calls, such calls shall be made on all nondefaulting banks in proportion to each such bank's remaining assets. "(E) Any System bank that, pursuant to a call by the Farm Credit Administration, makes a payment of principal or interest to the holder of any consolidated or System-wide obligation issued on

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