Page:United States Statutes at Large Volume 106 Part 5.djvu/474

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106 STAT. 4112 PUBLIC LAW 102-552—OCT. 28, 1992 Financial Assistance Corporation shall repay to the Secretary of the Treasury the total amount of any annual interest charges on the debt obligations that Farm Credit System institutions (other than the Financial Assistance ' Corporation) have not previously paid, and the Financial Assistance Corporation shall not oe required to pay any additional interest charges on the payments. "(B) ASSESSMENT.— In order to provide for the orderly funding by the banks of the System of the repayment by the Financial Assistance Corporation to the Secretary of the Treasunr, the Financial Assistance Corporation shall assess each System bank, on or about December 31 of each year beginning in 1992, and each System bank shall promptly pay to the Financial Assistance Corporation, an annual annuity type pa3anent in an amount designed to accumulate, in total, including earnings thereon, the amount of the bank's ultimate obligation (as determined by the Corporation on a fair and equitable basis), and no greater than.0006 nor less than.0004 times the bank's and its affiliated associations' average accruing retail loan volume for the preceding year, subject to— "(i) upward or downward ac^justment, as appropriate, by the Financial Assistence Corporation during each of the last 5 years prior to the date the Financial Assistance Corporation is obligated to make the repay- ment, in order to ensure that the Financial Assistance Corporation vdll have the amount of funds needed to make the repayment on the due date; and "(ii) reduction or termination in any year when the fUnds paid to the Financial Assistance Corporation, including any anticipated future earnings on the funds, are sufficient to make the repa3naient on the due date.

  • (C) INVESTMENT OF FUNDS. —The Financial Assistance

Corporation shall invest funds derived from the investment in eligible investments as defined in section 6.25(a)(l). The funds and the earnings on the funds shall be available only for the repayment to the Secretary of the Treasury provided for in subparagraph (A). "(D) PASS THROUGH. —A bank may (and, to the extent necessary to satisfy its obligations, snail) pass on (either directly, or indirectly through loan pricing or otherwise) all or part of the assessments to ite affiliated direct lender associations based on proportionate average accruing retail loan volumes for the preceding year, but the bank shall remain primarily Uable for the amounts. "(E) LIABILITY.— "(i) BANKS TERMINATING SYSTEM STATUS OR IN UQ- UIDATION.—Any bank terminating System stotus {>ursuant to section 7.10 shall be required, under reguations of the Farm Credit Administration, to pay to the Financial Assistance Corporation the estimated

I, present value of all future such assessmente against

the bank had the bank remained in the System. A liability to the Financial Assistance Corporation in this amount (calculated as if the bank had left the System on the date the bank was placed in liquidation) shall be recognized as a claim in favor of^ the Financial