Preferred stock agreement

Preferred stock agreement

Preferred Stock Agreement

A contract stating the terms for a preferred stock.
References in periodicals archive ?
He answered more questions about Fannie Mae and Freddie Mac's capital level saying the preferred stock agreement that was put into place when they were conserved effectively prohibited them from building up any reserve capital.
Including the new amount requested, the total amount drawn from Treasury under the Senior Preferred Stock Agreement will be $64.7 billion.
The final agreement, signed in August 1997, is in three parts: a preferred stock agreement, the patent cross-licensing agreement, and a technology agreement in which Apple promised to make IE its default on condition that Microsoft continued to develop Office for Macintosh.
Treasury entered into "senior preferred stock agreements" with each institution obligating the federal government to inject up to as much as $100 billion each in Fannie Mac and Freddie Mac.
This included: (1) placing both Fannie Mae and Freddie Mac into conservatorship; (2) having the Treasury enter into senior preferred stock agreements with both GSEs; and (3) establishing two new Treasury-operated liquidity facilities aimed at supporting the residential mortgage market--a mortgage-backed securities purchase facility and a standing credit facility.
(34) The senior preferred stock agreements also included various covenants.
The intent of the senior preferred stock agreements and Treasury liquidity facilities was to provide comfort to Fannie Mae's and Freddie Mac's senior and subordinate creditors and holders of mortgage-backed securities.
There were several covenants that applied to the enterprises as part of the senior preferred stock agreements. Without prior consent by Treasury, the enterprises cannot make any payment to purchase or redeem their capital stock, or pay dividends, as noted earlier, including preferred dividends--other than the dividends on the senior preferred stock owned by the federal government.
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