§3026 Acceleration of the Final Government Equity Redemption Date

Summary

Sets the final government equity redemption date as December 31, 1981, or no later than 10 days after Congress passes the first non-continuing appropriations law for fiscal year 1982 for the Department of Housing and Urban Development and Independent Agencies, whichever is later. The Secretary of the Treasury must publish a notice in the Federal Register within 5 days after that date. Before that date, the Treasury must buy any class A stock Congress has funded; after that date, the Treasury must not buy class A stock. On that date, the Bank must trade all class A stock it holds from the Treasury for class A notes equal to the stock’s face value plus unpaid dividends. From that date through December 31, 1990, at least 30 percent of money the Bank gets from selling stock (not including class B or C) must go immediately to pay down class A notes. After December 31, 1990, the Bank must keep a repayment plan that fully pays all class A notes by December 31, 2020 (in addition to the repayment rule in section 3014(c)). The United States is not responsible for any Bank obligations made after the final redemption date. The Bank’s Board must adopt bylaws as soon as practical after August 13, 1981 to help carry out these steps.