
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-9]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
             SUBCHAPTER VI--ASSISTANCE TO FARM CREDIT SYSTEM
 
                Part B--Financial Assistance Corporation
 
Sec. 2278b-9. One-time stock purchase


(a) Amount of stock purchase

                           (1) In general

        Except as provided in paragraphs (2) and (3), for the purpose of 
    obtaining funds for the Trust Fund, each System institution shall 
    purchase from the Financial Assistance Corporation stock issued in 
    accordance with section 2278b-3 of this title in an amount equal to 
    the amount by which the unallocated retained earnings of the 
    institution (after taking into account any funds received by the 
    institution under section 2278a-9(c) of this title) exceeds--
            (A) in the case of a System bank, 5 percent of assets; or
            (B) in the case of a production credit association or a 
        Federal land bank association, 13 percent of assets.

                          (2) Reallocation

        The district board of a district, subject to the unanimous 
    consent of the bank and associations in the district that would be 
    affected by the reallocation, may reallocate the amount of stock 
    required to be purchased by banks and associations in the district 
    under paragraph (1) to equitably reflect the ability of the banks 
    and associations to pay, except that--
            (A) the total amount of stock purchased by banks and 
        associations in the district under this paragraph shall equal 
        the total amount of stock required to be purchased by the banks 
        and associations under paragraph (1); and
            (B) the board may not impair the stock of an association in 
        carrying out this paragraph; and
            (C) a district board's authority to reallocate stock 
        purchases under this paragraph shall be limited to reallocation 
        among like associations of the amount of stock required to be 
        purchased by such associations; reallocation of the amount of 
        stock required to be purchased by production credit associations 
        among such associations and the district Federal intermediate 
        credit bank; and reallocation of the amount of stock required to 
        be purchased by Federal land bank associations among such 
        associations and the district Federal land bank. Other 
        reallocations than those enumerated above shall not be 
        permitted.

                       (3) Periodic purchases

        (A) Notwithstanding any other provision of this section, the 
    Financial Assistance Corporation shall establish a program under 
    which System institutions shall purchase, as debt obligations are 
    issued under section 2278b-6(a) of this title, stock of the 
    Corporation in amounts described in this paragraph.
        (B) The program shall provide, with respect to each issuance of 
    debt obligations under section 2278b-6(a) of this title, that each 
    System institution originally required to purchase stock under 
    paragraph (1), or the successor thereto, shall purchase Corporation 
    stock in an amount determined by multiplying the amount of stock 
    such institution was originally required to purchase under that 
    paragraph by a percentage equal to the percentage which the amount 
    of the issuance bears to $4,000,000,000.
        (C) The Financial Assistance Corporation shall promptly rescind 
    purchases of stock of the Corporation made under paragraph (1) or 
    (2) by System institutions and refund to such institutions, or their 
    successors, the purchase price for the stock, except that, with 
    respect to each issuance of debt obligations that occurs before 
    October 1, 1988, the Corporation shall deduct from any refund due 
    any System institution, and retain, the amount payable by such 
    institution.

(b) Computations

    For purposes of subsection (a) of this section, the unallocated 
retained earnings and assets of a System institution shall be computed 
in accordance with generally accepted accounting principles on the basis 
of the financial statement of the institution on December 31, 1986.

(c) Notice

    (1) Within 15 days after the retirement of the obligations of the 
Capital Corporation under section 2278a-9 of this title--
        (A) the Financial Assistance Corporation shall notify each 
    System institution of the amount of stock such institution is 
    required to purchase under subsection (a) of this section; or
        (B) in the case of a district in which the district board has 
    reallocated the stock purchase requirement in accordance with 
    subsection (a)(2) of this section, the district board shall notify 
    each System institution in the district of the amount of stock such 
    institution is required to purchase under subsection (a) of this 
    section.

    (2) Not later than 15 days before each issuance of debt obligations 
under section 2278b-6(a) of this title occurring after September 30, 
1988, the Financial Assistance Corporation shall notify each System 
institution required to purchase Corporation stock under subsection 
(a)(3) of this section of the amount of the stock it is required to 
purchase.

(d) Institution requirements after notice

    Within 15 days after a System institution is notified of the amounts 
due under subsection (c) of this section, the institution shall purchase 
from the Financial Assistance Corporation the amount of stock required 
to be purchased by the institution under this section. No further stock 
purchases, obligations, or assessments shall be required beyond that 
provided in section 2278b-6 of this title and this section.

(e) Jurisdiction over actions

    Notwithstanding any other provision of law, the United States 
district court for the District of Columbia shall have exclusive 
jurisdiction over any action brought under or arising out of this 
section. No suit or proceeding shall be maintained for the recovery of 
any amount of stock alleged to have been erroneously or illegally 
purchased, and no suit or proceeding shall be maintained to enjoin or 
otherwise prevent or impede the giving of notice or the purchase of 
stock required under this section, unless the amount of stock required 
to be purchased under this section has been purchased and paid for in 
full.

(Pub. L. 92-181, title VI, Sec. 6.29, as added Pub. L. 100-233, title 
II, Sec. 201, Jan. 6, 1988, 101 Stat. 1603; amended Pub. L. 100-460, 
title VI, Sec. 646, Oct. 1, 1988, 102 Stat. 2266.)


                               Amendments

    1988--Subsec. (a)(1). Pub. L. 100-460, Sec. 646(1), substituted 
``paragraphs (2) and (3)'' for ``paragraph (2)'' in introductory 
provisions.
    Subsec. (a)(3). Pub. L. 100-460, Sec. 646(2), added par. (3).
    Subsec. (c). Pub. L. 100-460, Sec. 646(3), (4), designated existing 
provisions as par. (1), redesignated former pars. (1) and (2) as 
subpars. (A) and (B), respectively, and added par. (2).


                    Effective Date of 1988 Amendments

    Pub. L. 101-220, Sec. 7(a), Dec. 12, 1989, 103 Stat. 1881, and Pub. 
L. 101-239, title I, Sec. 1006(a), Dec. 19, 1989, 103 Stat. 2109, 
provided that: ``Notwithstanding any other provision of law, the 
amendments to section 6.29 of the Farm Credit Act of 1971 (12 U.S.C. 
2278b-9) made by section 646 of the Rural Development, Agriculture, and 
Related Agencies Appropriations Act, 1989 (Public Law 100-460; 102 Stat. 
2266) shall be effective on October 1, 1992.''
    Section 646 of Pub. L. 100-460 provided that the amendment made by 
that section is effective Oct. 1, 1989.


 Payments to Farm Credit System Institutions for Purchases of Financial 
                      Assistance Corporation Stock

    Pub. L. 101-239, title I, Sec. 1006(b), Dec. 19, 1989, 103 Stat. 
2109, directed Financial Assistance Corporation to pay, out of Financial 
Assistance Corporation Trust Fund established under section 2278b-5(b) 
of this title, to each of institutions of Farm Credit System that 
purchased stock in Financial Assistance Corporation under section 2278b-
9 of this title, four annual payments, required the annual payments to 
be made available as soon as practicable after October 1 of each of 
calendar years 1989 through 1992, established method of calculating 
payments, and provided that payments be made available to such 
institutions in an amount equal to total amount of annual payments to be 
made available times the ratio of the amount of stock each institution 
purchased divided by $177,000,000.
    Similar provisions were contained in Pub. L. 101-220, Sec. 7(b), 
Dec. 12, 1989, 103 Stat. 1881.

                  Section Referred to in Other Sections

    This section is referred to in section 2278b-5 of this title.
