Previous Document Previous DocumentNext Document Next DocumentList of Statutes List of Statutes

Type: Statute
Statute: 1971 ACT AS AMENDED
Title: Title VIII Agricultural Mortgage Secondary Market
Part:
Subtitle: Subtitle B-Regulation of Financial Safety and Soundness of Federal Agricultural Mortgage Corporation
Chapter Name:
U.S. Code Citation: 12 U.S.C. 2279bb-2


12 U.S.C. 2279bb-2 SEC. 8.33. MINIMUM CAPITAL LEVEL.
(a) IN GENERAL. Except as provided in subsection (b), for purposes of this subtitle, the minimum capital level for the Corporation shall be an amount of core capital equal to the sum of
(1) 2.75 percent of the aggregate on-balance sheet assets of the Corporation, as determined in accordance with generally accepted accounting principles; and
(2) 0.75 percent of the aggregate off-balance sheet obligations of the Corporation, which, for the purposes of this subtitle, shall include
(A) the unpaid principal balance of outstanding securities that are guaranteed by the Corporation and backed by pools of qualified loans;
(B) instruments that are issued or guaranteed by the Corporation and are substantially equivalent to instruments described in subparagraph (A); and
(C) other off-balance sheet obligations of the Corporation.
(b) TRANSITION PERIOD.
(1) IN GENERAL. For purposes of this subtitle, the minimum capital level for the Corporation—
(A) prior to January 1, 1997, shall be the amount of core capital equal to the sum of—
(i) 0.45 percent of aggregate off-balance sheet obligations of the Corporation;
(ii) 0.45 percent of designated on-balance sheet assets of the Corporation, as determined under paragraph (2); and
(iii) 2.50 percent of on-balance sheet assets of the Corporation other than assets designated under paragraph (2);
(B) during the 1-year period ending December 31, 1997, shall be the amount of core capital equal to the sum of—
(i) 0.55 percent of aggregate off-balance sheet obligations of the Corporation;
(ii) 1.20 percent of designated on-balance sheet assets of the Corporation, as determined under paragraph (2); and
(iii) 2.55 percent of on-balance sheet assets of the Corporation other than assets designated under paragraph (2);
(C) during the 1-year period ending December 31, 1998, shall be the amount of core capital equal to—
(i) if the Corporation's core capital is not less than $25,000,000 on January 1, 1998, the sum of—
(I) 0.65 percent of aggregate off-balance sheet obligations of the Corporation;
(II) 1.95 percent of designated on-balance sheet assets of the Corporation, as determined under paragraph (2); and
(III) 2.65 percent of on-balance sheet assets of the Corporation other than assets designated under paragraph (2); or
(ii) if the Corporation's core capital is less than $25,000,000 on January 1, 1998, the amount determined under subsection (a); and
(D) on and after January 1, 1999, shall be the amount determined under subsection (a).
(2) DESIGNATED ON-BALANCE SHEET ASSETS. For purposes of this subsection, the designated on-balance sheet assets of the Corporation shall be—
(A) the aggregate on-balance sheet assets of the Corporation acquired under section 8.6(e); and
(B) the aggregate amount of qualified loans purchased and held by the Corporation under section 8.3(c)(13).

[FCA Home | FCA Handbook]