for stock acquired in exchange for municipal bonds, the same annual rate payable on Treasury bonds with a 30-year maturity purchased from the Treasury on the day the stock purchase agreement is finalized. (D) For stock purchased in exchange for cash by an organization that is exempt from tax under section 501 of the Internal Revenue Code of 1986, the same annual rate payable on Treasury bonds with a 30-year maturity on the day the stock purchase agreement is finalized plus one half of one percent (0.5%). (3) Acquisitions for other than cash or Treasury securities treated as acquisitions for cash For stock acquired in exchange for non-cash assets other than Treasury securities, the assets shall be liquidated by the Bank and the proceeds treated as a cash purchase of stock. (4) Authority to modify rates If the dividends provided for in paragraph (2) generate either more or less investment in the Bank’s preferred stock than is needed to achieve and maintain the Bank’s desired capitalization, the Directors may reduce or increase the dividends provided for new acquisitions of preferred stock in one or more of subparagraphs (A) through (D) of paragraph (2) for such periods of time as the Directors determine appropriate. (5) Priority and guarantee of dividend payments Dividend payments on the Bank’s preferred stock shall have priority over other uses of interest payments received by the Bank on its capital stock holdings of Treasury securities, and any such dividends owed in excess of the amount covered by these interest payments shall be guaranteed by the United States in the stock purchase agreement. (d) Borrowed capital The Bank is further authorized to raise borrowed capital for projects needs, or to meet its cash flow (liquidity) needs, by— (1) issuing Bonds, with a fixed 5 to 10 year maturity