For purposes of subsection (a)(2), the term “high-cost debt” means securities or similar obligations issued before January 1, 1986, that mature on or after December 31, 1987, and bear a rate of interest in excess of the then current market rate for similar securities or obligations.
12 U.S. Code § 2278a–5 - Assistance
(a) In generalThe Assistance Board shall assist an institution that has been certified under section 2278a–4 of this title by—
in the case of high-cost debt for which the institution is primarily liable, authorizing the institution to issue preferred stock under section 2278b–7 of this title, in an amount equal to the premium that would be required by the holder of the debt for the institution to retire the debt at the then current market value;
on a request by the institution, authorizing the issuance of preferred stock under section 2278b–7 of this title to facilitate the merger of the requesting institution with one or more other System institutions; or
providing assistance by such other methods as the Assistance Board determines appropriate.
(b) “High-cost debt” defined
(c) Minimum equity valueThe Assistance Board shall authorize a certified institution to issue amounts of preferred stock under section 2278b–7 of this title sufficient to—
References in Text
1988—Subsecs. (a)(1) to (3), (c). Pub. L. 100–399, § 201(e), struck out “the appropriate provision of” after “under” wherever appearing.