PUBLIC LAW 102-552—OCT. 28, 1992 106 STAT. 4111

to the Financial Assistance Corporation under this
subparagraph shall be recorded each year as an
expense item, in accordance with generally accepted
accounting principles, on the books of the bank.

"(iii) PASS THROUGH.—A bank may (and, to the
extent necessary to satisfy its obligations, shall) pass
on (either directly, or indirectly through loan pricing
or otherwise) all or part of the amount necessary to
satisfy the payment requirement to its affiliated direct
lender associations based on proportionate average
accruing retail loan volumes for the preceding 15 years,
except that the bank shall remain primarily liable
for the amount.

"(iv) BANKS LEAVING SYSTEM.—Any bank leaving
the Farm Credit System pursuant to section 7.10 shall
be required, under regulations of the Farm Credit
Administration, to pay to the Financial Assistance Cor-
poration the estimated present value of the payment
required under this subparagraph had the bank
remained in the System. A liability to the Financial
Assistance Corporation in this amount (calculated as
if the bank had left the System on the date it was
placed in liquidation) shall be recognized as a claim
in favor of the Financial Assistance Corporation
against the estate of any bank undergoing liquidation.
The obligations of other banks shall not be reduced
in anticipation of any such recoveries from banks leav-
ing the System or in liquidation, but the Financial
Assistance Corporation shall apply the recoveries,
when received, and all earnings on the recoveries, to
reduce the other banks' payment obligations, or, to
the extent the recoveries are received after the other
banks have met their entire payment obligation, shall
refund the recoveries, when received, to the other
banks in proportion to the other banks' payments.

"(v) ASSOCIATIONS TERMINATING SYSTEM STATUS OR
IN LIQUIDATION.—Any association leaving the Farm
Credit System pursuant to section 7.10 shall be
required, under regulations of the Farm Credit
Administration, to Day to its supervising bank a share,
based on the association's retail loan volume relative
to the retail loan volume of the bank and its affiliated
associations had the association remained in the Sys-
tem, of the present value of the future payment obliga-
tion of its supervising bank. A liability to the bank
in this amount (calculated as if the association had
left the System on the date it was placed in
liquidation) shall be recognized as a claim in favor
of the bank against the estate of any association under-
going liquidation.".

SEC. 304. REPAYMENT OF TREASURY-PAID INTEREST.

(a) IN GENERAL.—Paragraph (5) of section 6.26(c) (12 U.S.C.
2278b-6(c)(5)) is amended to read as follows:

"(5) REPAYMENT OF TREASURY-PAID INTEREST.—

"(A) IN GENERAL.^-On the maturity date of the last-
maturing debt obligation issued under subsection (a), the