Page:United States Statutes at Large Volume 106 Part 1.djvu/588

 106 STAT. 556 PUBLIC LAW 102-325—JULY 23, 1992 of the Association or any holder. Each outstanding certificate for voting or nonvoting common stock shall evidence ownership of the same number of shares of voting stock into which it is converted. All preexisting rights and obligations with respect to any class of common stock of the Association shall be deemed to be rights and obligations with respect to such converted shares.". (e) SAFETY AND SOUNDNESS OF ASSOCIATION.— Section 439 of the 20 USC 1087-2. Act is amended by adding at the end the following new subsection: "(r) SAFETY AND SOUNDNESS OF ASSOCIATION. — "(1) REPORTS BY THE ASSOCIATION. — The Association shall promptly furnish to the Secretary of Education and Secretary of the Treasury copies of all— "(A) periodic financial reports publicly distributed by the Association; and "(B) reports concerning the Association that are received by the Association and prepared by nationally recognized statistical rating organizations. "(2) AUDIT BY SECRETARY OF THE TREASURY. —(A) The Secretary of the Treasury may— " (i) appoint auditors to conduct audits of the Association from time to time to determine the condition of the Association for the purpose of assessing its financial safety and soundness; and "(ii) enter into contracts to obtain the services of such technical experts as the Secretary of the Treasury determines necessary and appropriate to provide technical assistance to any auditor appointed under this paragraph. "(B) Each auditor appointed under this paragraph shall conduct an audit of the Association to the extent requested by the Secretary of the Treasury and shall prepare and submit a report to the Secretary of the Treasury concerning the results of such audit. A copy of such report shall be furnished to the Association and the Secretsiry of Education on the date on which it is delivered to the Secretary of the Treasury. "(C) The Association shall provide full and prompt access to the Secretary of the Treasury to its books and records and other information requested by the Secretary of the Treasury. "(3) MONITORING OF SAFETY AND SOUNDNESS. —The Secretary of the Treasury shall conduct such studies as may be necessary to monitor the financial safety and soundness of the Association. In the event that the Secretary of the Treasury determines that the financial safety and soiuidness of the Association is at risk, the Secretary of the Treasury shall inform the Chairman and remking minority member of the Committee on Labor and Human Resources of the Senate, the Chairman and ranking minority member of the Committee on Education and Labor of the House of Representatives, and the Secretary of Education of such determination and identify any corrective actions that should be taken to ensure the safety and soundness of the Association. "(4) CAPITAL STANDARD.—If the capital ratio is less than 2 percent and is greater than or equal to 1.75 percent at the end of the Association's most recent calendar quarter the Association shall, within 60 days of such occurrence, submit to the Secretary of the Treasury a capital restoration plan, in reasonable detail, that the Association believes is adequate

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