Page:United States Statutes at Large Volume 92 Part 1.djvu/559

 PUBLIC LAW 95-351—AUG. 20, 1978

92 STAT. SO'S

par value of the class A stock so redeemed plus cumulative dividends accrued thereon to the date of redemption): Provided, That beginning on October 1, 1990, there shall be redeemed as a minimum with respect to each fiscal year a number of shares of class A stock having an aggregate par value equal to the aggregate consideration received by the Bank for the issue of its class B and class C stock during that fiscal year. Each such redemption shall take place not later than ninety days after the close of each fiscal year. (d) Class B stock shall be held only by recipients of loans under section 105 of this Act, and such borrowers shall be required to own class B stock in an amount not less than 1 per centum of the face amount of the loan at the time the loan is made. Such borrowers may be required by the Bank to own additional class B or class C stock at the time the loan is made, but not to exceed an amount equal to 10 per centum of the face amount of the loan, or from time to time, as the Bank may determine. Such additional stock ownership requirements may be on the basis of the face amount of the loan, the outstanding balances, or on a percentage of interest payable during any year or any quarter thereof, as the Bank may determine will provide adequate capital for the operation of the Bank and equitable ownership thereof among borrowers. (e) Class C stock shall be available for purchase and shall be held only by borrowers or by organizations eligible to borrow under section 105 of this Act or by organizations controlled by such borrowers, and shall be entitled to dividends in the manner specified in the bylaws of the Bank. Such dividends shall be payable only from income, and, until all class A stock has been retired, the rate of such dividends shall not exceed the rate of the statutory dividend on class A stock. (f) Nonvoting stock of other classifications and other priorities may be issued at the discretion of the Board, to other investors, except that so long as any class A stock is outstanding, the Board shall not authorize or issue any class of stock, whether voting or nonvoting, that would rank prior or equal to the class A stock as to dividends or upon liquidation or dissolution. (g)(1) The bylaws of the Bank may provide for more than one vote on the basis of— (A) the amount of class B stock, class C stock, or both classes N, held, with such limitations as will encourage investments in class C stock; (B) the amount of patronage of the Bank; and (C) number of members in the cooperative. (2) Such bylaws shall avoid— , (A) voting control of the Bank from becoming concentrated with the larger affluent or smaller less affluent organizations; (B) a disproportionately larger vote in one or more of the groups of cooperatives referred to in section 103(c) of this Act; and (C) the concentration of more than 5 per centum of the total voting control in any one class B or class C stockholder. (h) The Bank may accept nonreturnable capital contributions on ^ which no interest, dividend, or patronage refund shall be payable from associations, foundations, or funds or public bodies or agencies at the discretion of the Board. For the purpose of accepting such contributions, the Bank will be a governmental unit within the meaning of section 170(b)(1)(A)(v) of the Internal Revenue Code of 1954. 26 USC 170. (i) After payment of all operating expenses of the Bank, including interest on its obligations, and after setting aside appropriate funds

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