
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 12USC2278a-4]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
             SUBCHAPTER VI--ASSISTANCE TO FARM CREDIT SYSTEM
 
                        Part A--Assistance Board
 
Sec. 2278a-4. Certification of eligibility to issue preferred 
        stock
        

(a) Book value less than par value of stock and equities

    If the book value of the stock, participation certificates, and 
other similar equities of a System institution, based on generally 
accepted accounting principles, is less than the par value of the stock 
or the face value of the certificates or equities--
        (1) the Farm Credit Administration shall notify the Assistance 
    Board of such impairment;
        (2) the Assistance Board shall monitor the financial condition, 
    business plans, and operations of the institution; and
        (3) the institution may request the Assistance Board to grant 
    certification to issue preferred stock under section 2278b-7(a) of 
    this title.

(b) Book value less than 75 percent of par value of stock and equities

    If the book value of the stock, participation certificates, and 
other similar equities of a System institution, based on generally 
accepted accounting principles, is less than 75 percent of the par value 
of the stock or the face value of the certificates or equities, the 
institution shall request the Assistance Board to grant certification to 
issue preferred stock under section 2278b-7(a) of this title.

(c) Mandatory determination of eligibility

                           (1) In general

        The Assistance Board shall determine whether to certify a System 
    institution as eligible to issue preferred stock under section 
    2278b-7 of this title, if--
            (A) the institution requests such certification;
            (B) the book value of the stock, participation certificates, 
        and other similar equities of the institution, based on 
        generally accepted accounting principles, has declined to 75 
        percent of the par value of the stock or the face value of the 
        certificates or equities; and
            (C) the institution agrees to meet the terms and conditions 
        specified by the Assistance Board pursuant to section 2278a-6 of 
        this title.

                 (2) Effective date of certification

        If the determination of the Assistance Board is to certify the 
    institution under paragraph (1), such certification shall be 
    effective at the time of such determination.

(d) Implementation

    As soon as practicable after January 6, 1988, the Assistance Board 
shall take such actions as are necessary to carry out this section.

(e) ``Other similar equities'' defined

    Except where otherwise provided in this chapter, the term ``other 
similar equities'' includes allocated equities.

(Pub. L. 92-181, title VI, Sec. 6.4, as added Pub. L. 100-233, title II, 
Sec. 201, Jan. 6, 1988, 101 Stat. 1588; amended Pub. L. 100-399, title 
II, Sec. 201(c), Aug. 17, 1988, 102 Stat. 991.)


                               Amendments

    1988--Subsecs. (c) to (e). Pub. L. 100-399 redesignated second 
subsec. (c) and subsec. (d) as (d) and (e), respectively.


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-399 effective as if enacted immediately 
after enactment of Pub. L. 100-233, which was approved Jan. 6, 1988, see 
section 1001(a) of Pub. L. 100-399, set out as a note under section 2002 
of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 2202c, 2278a-5, 2278a-6, 
2278b-7 of this title.
