Page:United States Statutes at Large Volume 99 Part 2.djvu/577

 PUBLIC LAW 99-205—DEC. 23, 1985 exercising the authority under subsection (a) and the reasons and documentation therefor, if that decision is not to purchase obhgations of the Capital Corporation. "SEC. 4.28K. INITIAL CAPITAUZATION.—The Farm Credit Administration shall provide for the initial capitalization of the Capital Corporation by requiring, in accordance with section 4.28G, institutions of the System to contribute capital to the Capital Corporation in such amounts and under such terms and conditions as the Farm Credit Administration, in consultation with System institutions, may prescribe. "SEC. 4.28L, TAX STATUS OF CONSOLIDATED OBLIGATIONS.—Consoli-

dated notes, bonds, debentures, or other obligations, the issuance of which is joined in by the Capital Corporation pursuant to paragraph (13) of section 4.28G, shall have the same tax status as provided by this Act with respect to such obligations issued by the banks.".

99 STAT. 1687

12 USC 2216J. Ante, p. 1682.

Securities. 12 USC 2216k.

CONFORMING AMENDMENT

SEC. 104. Title IV of the Farm Credit Act of 1971 is further amended by inserting before section 4.2 the following: "SEC. 4.1. REQUIREMENTS TO PURCHASE STOCK AND PAY ASSESSMENTS AND CONTRIBUTE CAPITAL TO CAPITAL CORPORATION.—The

12 USC 2152.

Federal land banks, the Federal intermediate credit banks, the banks for cooperatives, the Federal land bank associations, and the production credit associations shall purchase stock in, or obligations of, the Capital Corporation, pay assessments, make capital contributions, and take such other related actions as required by the Capital Corporation in the exercise of its powers under this Act. Any payment for retirement of stock so purchased, or repayment of obligations so purchased, by the Capital Corporation shall be distributed among all holders of such stock or obligations on the basis of the book value of the stock or obligations held by each such holder at the time of the distribution.". CENTRAL RESERVE

SEC. 105. Part A of title IV of the Farm Credit Act of 1971 (12 U.S.C. 2151 et seq.) is amended by inserting after section 4.9 the following: "SEC. 4.9A. CENTRAL RESERVE FOR FARM CREDIT SYSTEM.—(a) The

Effective date.

Farm Credit Administration may, effective January 1, 1991, estab- Securities. lish and maintain a central reserve for the Farm Credit System. 12 USC 2161. "(b) Such central reserve shall be held in the form of Treasury securities and demand deposits. "(c) The Farm Credit Administration may use the reserve to make temporary deposits and temporary investments in financially troubled banks or associations of the Farm Credit System. "(d)(1) The Farm Credit Administration may order payments into such central reserve of one-tenth of 1 percent of the proceeds of each individual, consolidated, or System-wide note, bond, debenture, or other obligation issued by the Farm Credit System, or any part thereof, under this Act. "(2) Such payments under paragraph (1) may be ordered during any period when such central reserve contains the unobligated sum the Farm Credit Administration deems inadequate to achieve the purposes of such central reserve, but not more than a sum equal to 3 percent of the total of loans outstanding on December 31 of the last

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