Page:United States Statutes at Large Volume 101 Part 3.djvu/323

 PUBLIC LAW 100-233—JAN. 6, 1988

. 101 STAT. 1621

behalf of another System bank shall be subrogated to all rights of the holder against such other bank to the extent of such payment. "(F) On making such a call with respect to obligations issued on behalf of a System bank, the Farm Credit Administration shall appoint a receiver for the bank, which shall expeditiously liquidate or otherwise wind up the affairs of the bank.". (b) INSURANCE FUND CALLED ON BEFORE INVOKING JOINT AND SEVERAL LIABILITY.—Section 4.4 (12 U.S.C. 2155) is amended by

adding at the end thereof the following new subsection: "(e) Beginning 5 years after the date of the enactment of this subsection, the Farm Credit Administration shall not call on any System institution to satisfy the liability of the institution on any joint, consolidated, or System-wide obligation participated in by the institution or with respect to which the institution is primarily, or jointly and severally, liable, before the Farm Credit Insurance Fund is exhausted, even if the Fund is only able to make a partial payment because of insufficient amounts in the Fund.". SEC.

304. ENHANCEMENT OF CAPITAL ADEQUACY OF BANKS.

Subsection (c) of section 4.3 (12 U.S.C. 2154(c)) is amended to read as follows: "(c) Each bank shall have on hand at the time of issuance of any note, bond, debenture, or other similar obligation and at all times thereafter maintain, free from any lien or other pledge, notes and other obligations representing loans made under this Act or real or personal property acquired in connection with loans made under this Act, obligations of the United States or any agency thereof direct or fully guaranteed, other bank assets (including marketable securities) approved by the Farm Credit Administration, or cash, in an aggregate value equal to the total amount of notes, bonds, debentures, or other similar obligations outstanding for which the bank is primarily liable.". SEC.

>i^''>-u^;i

305. FEDERAL INTERMEDIATE CREDIT BANK ASSESSMENT POWER

Section 2.5 (12 U.S.C. 2076) is amended— (1) in the title, by inserting "; AUTHORITY TO PASS ALONG COST OF INSURANCE PREMIUMS" before the period; (2) by inserting "(a)" before "The Federal"; and (3) by adding at the end thereof the following new subsection: "(h) Each Federal intermediate credit bank may assess each production credit association and other financing institution described in section 2.3(a)(2) in the district in which the bank is located to cover the costs of making premium pa5anents under part E of title V. The assessment on any such association or other financing institution for any calendar year shall not exceed the sum of— "(1) the annual average principal outstanding for such year on loans made by the association, or on loans made by the other financing institution and discounted with the Federal intermediate credit bank, that are in accrual status, multiplied by 0.0015; and "(2) the annual average principal outstanding for such year on loans made by the association, or on loans made by the other financing institution and discounted with the Federal intermediate credit bank, that are in nonaccrual status, multiplied by 0.0025.".

.

, j

�