106 STAT. 4112 PUBLIC LAW 102-552—OCT. 28, 1992

Financial Assistance Corporation shall repay to the Sec-
retary of the Treasury the total amount of any annual
interest charges on the debt obligations that Farm Credit
System institutions (other than the Financial Assistance
Corporation) have not previously paid, and the Financial
Assistance Corporation shall not be required to pay any
additional interest charges on the payments.

"(B) ASSESSMENT.—In order to provide for the orderly
funding by the banks of the System of the repayment
by the Financial Assistance Corporation to the Secretary
of the Treasury, the Financial Assistance Corporation shall
assess each System bank, on or about December 31 of
each year beginning in 1992, and each System bank shall
promptly pay to the Financial Assistance Corporation, an
annual annuity type payment hi an amount designed to
accumulate, in total, including earnings thereon, the
amount of the bank's ultimate obligation (as determined
by the Corporation on a fair and equitable basis), and
no greater tnan .0006 nor less than .0004 tunes the bank's
and its affiliated associations' average accruing retail loan
volume for the preceding year, subject to—

"(i) upward or downward adjustment, as appro-
priate, by the Financial Assistance Corporation during
each of the last 5 years prior to the date the Financial
Assistance Corporation is obligated to make the repay-
ment, in order to ensure that the Financial Assistance
Corporation will have the amount of funds needed
to make the repayment on the due date; and

"(ii) reduction or termination in any year when

the funds paid to the Financial Assistance Corporation,

including any anticipated future earnings on the funds,

are sufficient to make the repayment on the due date.

"(C) INVESTMENT OF FUNDS.—The Financial Assistance

Corporation shall invest funds derived from the investment

in eligible investments as defined in section 6.25(aXD-

The funds and the earnings on the funds shall be available

only for the repayment to the Secretary of the Treasury

provided for in subparagraph (A).

"(D) 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 assessments to its affiliated direct lender
associations based on proportionate average accruing retail
loan volumes for the preceding year, but the bank shall
remain primarily liable for the amounts.
"(E) LIABILITY.—

"(i) BANKS TERMINATING SYSTEM STATUS OR IN LIQ-
UIDATION.—Any bank terminating System status
eirsuant to section 7.10 shall be required, under regu-
tions of the Farm Credit Administration, to pay to
the Financial Assistance Corporation the estimated
present value of all future such assessments against
the bank 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 the bank was placed in liquidation) shall
be recognized as a claim in favor of the Financial