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Type: Statute
Statute: 1971 ACT AS AMENDED
Title: Title VI Assistance to Farm Credit System
Part:
Subtitle: Subtitle B-Financial Assistance Corporation
Chapter Name:
U.S. Code Citation: 12 U.S.C. 2278b-7


12 U.S.C. 2278b-7 SEC. 6.27. PREFERRED STOCK.
(a) ISSUANCE.
(1) IN GENERAL. Each System institution that is certified under section 6.4 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 6.26(d)(3)(B)(iii), and the Farm Credit System Insurance Corporation, with respect to any of such stock that the Insurance Corporation purchases or otherwise acquires under section 6.26(d)(3)(B)(iii) or section 6.26(d)(4)(B) (ii), 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.

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