12-U.S.C.-2278B-7
§2278B-7 – §2278B-7. Preferred Stock
Pathway
Title 12 > Chapter 23 > Subchapter VI > Part B > Section 2278b-7
Details
- Reference: Section 2278b-7
- Legend: §2278B-7 – §2278B-7. Preferred Stock
- USCode Year: 2013
Provision Content
(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, §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.)
Amendments
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).
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.
U.S. Encyclopedia of Law Coverage
12-U.S.C.-2278B-7 in the Legal Encyclopedia: Banking Law
In this entry about 12-U.S.C.-2278B-7, find legal reference material, bibliographies and premiere content related to banking law in the American Encyclopedia of Law, presenting a comprehensive view of the United States banking law-specific issues, written by authorities in the field.
12-U.S.C.-2278A-2 in the Legal Encyclopedia: Farm Credit System
In this entry about 12-U.S.C.-2278A-2, find legal reference material, bibliographies and premiere content related to farm credit system in the American Encyclopedia of Law, presenting a comprehensive view of the United States farm credit system-specific issues, written by authorities in the field.
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