Statute: 1971 ACT AS AMENDED
Title: Title V Farm Credit Administration Organization
Part: Part E Farm Credit System Insurance Corporation
U.S. Code Citation: 12 U.S.C. 2277a-9
12 U.S.C. 2277a-9 SEC. 5.60. INSURANCE FUND.
(a) ESTABLISHMENT. There is hereby established a Farm Credit Insurance Fund (hereinafter referred to in this section as the "Insurance Fund") for insuring the timely payment of principal and interest on insured obligations. The assets in the Fund shall be held by the Corporation for the uses and purposes of the Corporation.
(b) AMOUNTS IN FUND.
(1) REVOLVING FUND. All amounts in the revolving fund established by section 4.0 shall be transferred into the Farm Credit Insurance Fund on January 1, 1989, or 12 months after the date of the enactment of this part, whichever is later, except that the obligations to, and rights of, any person in such revolving fund arising out of any event or transaction before the date of the enactment of this part shall remain unimpaired.
(2) DEPOSIT OF PREMIUMS. The Corporation shall deposit in the Insurance Fund all premium payments received by the Corporation under this part.
(c) USES OF FUND.
(1) MANDATORY USE. Beginning January 1, 1993, the Corporation shall expend amounts in the Insurance Fund to the extent necessary to insure the timely payment of interest and principal on insured obligations.
(2) OTHER MANDATORY USES. Beginning January 1, 1993, the Corporation shall use amounts in the Insurance Fund to—
(A) satisfy System institution defaults through the purchase of preferred stock or other payments as provided for in section 6.26(d)(3); and
(B) ensure the retirement of eligible borrower stock at par value under section 4.9A.
(3) PERMISSIVE USES. The Corporation may expend amounts in the Insurance Fund to carry out section 5.61 and to cover the operating costs of the Corporation.
(4) CORPORATE PAYMENT OR REFUNDS. The Corporation shall make all payments and refunds required to be made by the Corporation under this part from amounts in the Insurance Fund.
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