
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 12USC2278b-7]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
             SUBCHAPTER VI--ASSISTANCE TO FARM CREDIT SYSTEM
 
                Part B--Financial Assistance Corporation
 
Sec. 2278b-7. Preferred stock


(a) Issuance

                           (1) In general

        Each System institution that is certified under section 2278a-4 
    of this title may issue a special class of preferred stock only in 
    an amount, and subject to such terms and conditions, as authorized 
    by the Assistance Board.

                            (2) Dividends

        (A) In general

            Except as provided in subparagraph (B), dividends shall not 
        be payable on stock issued under this section.

        (B) Exception

            Stock issued under this section shall be issued under such 
        terms and conditions as to enable the Secretary of the Treasury, 
        with respect to any of such stock the Secretary purchases under 
        section 2278b-6(d)(3)(B)(iii) of this title, and the Farm Credit 
        System Insurance Corporation, with respect to any of such stock 
        that the Insurance Corporation purchases or otherwise acquires 
        under section 2278b-6(d)(3)(B)(iii) of this title or section 
        2278b-6(d)(4)(B)(ii) of this title, to establish for such stock 
        a stated dividend rate equal to the current market yield on 
        outstanding, marketable obligations of the United States with 
        maturities of 30 years, plus a premium to reflect the cost of 
        capital for institutions in financial distress.

                          (3) Voting rights

        A holder of stock issued under this subsection shall have no 
    voting rights with respect to the stock.

(b) Purchase

    The Financial Assistance Corporation shall purchase shares of stock 
issued by certified System institutions under subsection (a) of this 
section to the extent that the issuance of such stock is approved by the 
Assistance Board.

(Pub. L. 92-181, title VI, Sec. 6.27, as added Pub. L. 100-233, title 
II, Sec. 201, Jan. 6, 1988, 101 Stat. 1602; amended Pub. L. 100-399, 
title II, Sec. 201(y)-(aa), Aug. 17, 1988, 102 Stat. 992.)


                               Amendments

    1988--Subsec. (a)(1). Pub. L. 100-399, Sec. 201(y), struck out ``(a) 
or (b)'' after ``section 2278a-4''.
    Subsec. (a)(2)(B). Pub. L. 100-399, Sec. 201(z), substituted ``Farm 
Credit System Insurance Corporation'' for ``Reserve Account Board'' and 
``Insurance Corporation purchases'' for ``Board purchases''.
    Subsec. (b). Pub. L. 100-399, Sec. 201(aa), substituted ``subsection 
(a)'' for ``subsections (a) and (b)''.


                    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, 2254, 2278a-4, 2278a-
5, 2278b-6 of this title.
