85 STAT. ]
PUBLIC LAW 92-181-DEC. 10, 1971
593
scribed for by each association will be in the same proportion to the total amount of stock already owned and to be subscribed for by all of the associations in the district that the average indebtedness (loans and discounts) of each association to the bank during the immediately preceding three fiscal years is of the average of such indebtedness of all associations to the bank during such three-year period. Each association shall subscribe for stock in the bank in the amount so allotted to it. Such subscriptions shall be subject to call and payment therefor shall be made a t such times and in such amounts as may be determined by the bank. Whenever the relative amounts of stock in a bank owned by the associations differ substantially from the proportion indicated in the preceding paragraph, and additional subscriptions to stock through which such proportion could be reestablished are not contemplated, the bank, with approval of the F a r m Credit Administration, may direct either separately or in combination such transfers, retirements, and reissuance of outstanding stock among the associations as will reestablish the aforesaid proportion as nearly as may be practicable. Outstanding stock which is retired for this purpose, except as otherwise approved by the F a r m Credit Administration, shall be the oldest stock held by the association and the bank shall pay the association therefor at the fair book value thereof not exceeding par. The banks may issue further amounts of participation certificates with the same rights, privileges, and conditions, for purchase by institutions other than production credit associations which are entitled to receive participation certificates from the bank as patronage refunds. Participation certificates held by other financing institutions may be transferred to other such institutions upon request of, or with the approval of the bank. After all stock held by the Governor of the Farm Credit Administration has been retired, the bank may retire other stock a t p a r and participation certificates at face amount under regulations of the F a r m Credit Administration. Such other stock and participation certificates shall be retired without preference and in such manner that, unless otherwise approved by F a r m Credit Administration, the oldest outstanding stock or certificates at any given time will be retired first. I n case of liquidation or dissolution of any production credit association or other financing institution, the stock or participation certificates of the bank owned by such association or institution may be retired by the bank at the fair book value thereof, not exceeding par or face amount, as the case may be. (h) Except with regard to stock held by the Governor, each Federal intermediate credit bank shall have a first lien on all stock and participation certificates it issues and on all allocated reserves and other equities for any indebtedness of the holder of such capital investments to the bank. (i) I n any case where the debt of a production credit association or other financing institution is in default, the bank may retire all or part of the capital investments in the bank held bj' such debtor at the fair book value thereof, not exceeding par or face amount as the case may be, in total or partial liquidation of the debt. SEC. 2.3. LOANS; DISCOUNTS; PARTIGIPATIOX; LEASING.—(a)
The
Federal intermediate credit banks are authorized to make loans and extend other similar financial assistance to and discount for, or purchase from, any production credit association with its endorsement or guaranty, any note, draft, or other obligation presented by such association, and to participate with such association and one or more
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