2015 US Code
Title 12 - Banks and Banking (Sections 1 - 5710)
Chapter 23 - Farm Credit System (Sections 2001 - 2279cc)
Subchapter VI - Assistance to Farm Credit System (Sections 2278a - 2278b-11)
Part B - Financial Assistance Corporation (Sections 2278b - 2278b-11)
Sec. 2278b-7 - Preferred stock

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.

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

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.

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

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

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

1988—Subsec. (a)(1). Pub. L. 100–399, §201(y), struck out "(a) or (b)" after "section 2278a–4".

Subsec. (a)(2)(B). Pub. L. 100–399, §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, §201(aa), substituted "subsection (a)" for "subsections (a) and (b)".

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.