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Type: Statute
Statute: 1971 ACT AS AMENDED
Title: Title VI Assistance to Farm Credit System
Part:
Subtitle: Subtitle A - Assistance Board
Chapter Name:
U.S. Code Citation: 12 U.S.C. 2278a-4


12 U.S.C. 2278a-4 SEC. 6.4. CERTIFICATION OF ELIGIBILITY TO ISSUE PREFERRED STOCK.
(a) BOOK VALUE LESS THAN PAR VALUE OF STOCK AND EQUITIES. If the book value of the stock, participation certificates, and other similar equities of a System institution, based on generally accepted accounting principles, is less than the par value of the stock or the face value of the certificates or equities
(1) the Farm Credit Administration shall notify the Assistance Board of such impairment;
(2) the Assistance Board shall monitor the financial condition, business plans, and operations of the institution; and
(3) the institution may request the Assistance Board to grant certification to issue preferred stock under section 6.27(a).
(b) BOOK VALUE LESS THAN 75 PERCENT OF PAR VALUE OF STOCK AND EQUITIES. If the book value of the stock, participation certificates, and other similar equities of a System institution, based on generally accepted accounting principles, is less than 75 percent of the par value of the stock or the face value of the certificates or equities, the institution shall request the Assistance Board to grant certification to issue preferred stock under section 6.27(a).
(c) MANDATORY DETERMINATION OF ELIGIBILITY.
(1) IN GENERAL. The Assistance Board shall determine whether to certify a System institution as eligible to issue preferred stock under section 6.27, if
(A) the institution requests such certification;
(B) the book value of the stock, participation certificates, and other similar equities of the institution, based on generally accepted accounting principles, has declined to 75 percent of the par value of the stock or the face value of the certificates or equities; and
(C) the institution agrees to meet the terms and conditions specified by the Assistance Board pursuant to section 6.6.
(2) EFFECTIVE DATE OF CERTIFICATION. If the determination of the Assistance Board is to certify the institution under paragraph (1), such certification shall be effective at the time of such determination.
(d) IMPLEMENTATION. As soon as practicable after the date of the enactment of this title, the Assistance Board shall take such actions as are necessary to carry out this section.
(e) DEFINITION. Except where otherwise provided in this Act, the term "other similar equities" includes allocated equities.

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