PUBLIC LAW 102-552—OCT. 28, 1992 106 STAT. 4109

making the payments no later than December 31,1993)
in amounts designed to accumulate, in total, including
earnings on the amounts, to 90 percent of the bank's
ultimate obligation/The Financial Assistance Corpora-
tion shall partially discharge the bank from its obliga-
tion under subparagraph (C) to the extent of each
such payment and the earnings on the payment as
earned.

"(ii) CAPITAL REQUIREMENTS.—The agreement shall
not require payments to be made to the extent that
making a particular payment or part of a payment
would cause the bank to fail to satisfy applicable
regulatory permanent capital requirements, but shall
provide for recalculation of subsequent payments
accordingly.

"(iii) INVESTMENT; AVAILABILITY.—The funds
received by the Financial Assistance Corporation
pursuant to the agreements shall be invested in eligible
investments as defined in section 6.25(aXD- The funds
and the earnings on the funds shall be available only
for the payment of the principal of the bonds issued
by the Financial Assistance Corporation under this
subsection."; and

(4) in subparagraph (E) (as redesignated by paragraph
(2)), by inserting before the period at the end the following:
", nor shall the obligation to make future annuity payments
to the Financial Assistance Corporation under subparagraph
(D) be considered a liability of any System bank".

SEC. 302. PREFERRED STOCK.

Subparagraph (B) of section 6.26(d)(l) (12 U.S.C. 2278b-
6(d)(l)(B)) is amended to read as follows:

"(B) PAYMENTS BY INSTITUTIONS.—

"(i) IN GENERAL.—Except as provided in subpara-
graph (C), in order to enable the Financial Assistance
Corporation to repay the obligation referred to in
subparagraph (A), each institution that issued
preferred stock under section 6.27(a) with respect to
the obligation (or the successor to the institution) shall
pay to the Financial Assistance Corporation, before
the maturity date of the obligation, an amount
equal to the par value of the stock outstanding for
the institution.

"(ii) ANNUAL APPROPRIATION.—Except as provided
in clause (iii), each year beginning in 1992, as soon
as practicable following the end of the prior year, each
such institution (except institutions in receivership and
institutions that have previously redeemed their pre-
ferred stock) shall appropriate from its earnings in
the prior year to an appropriated unallocated surplus
account with respect to preferred stock, the sum of—
W(I) the greater of—

"(aa) such amount as the institution may
be required to appropriate under any assist-
ance agreement the institution has with the
Farm Credit System Assistance Board or the