C. In goods or services rather than money.
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to pronunciationLegal Definition -
1. In goods or services rather than money <payment in cach or in kind> 2. In a similar way; with an equivalent of what has been offered of received <returned the favor in kind>.
Black's Law Dictionary® Eighth Edition © 2004
Current Usage -
It wasn’t quite a wipe-out. In the end, and like all bailouts, the Freddie Mac/Fannie Mae weekend affair was imperfect. The result is that today the government sponsored entities’ common and preferred shares are trading in the market and will continue to do so for the time being. They have been spared from total eradication. Treasury didn’t arrange a full government takeover or even a bailout of the GSEs. Instead, Paulson marched in the chief executives of Freddie and Fannie and told them that they could either consent to or be forced into conservatorship. Implicit in this non-choice may have been the quid pro quo of their regulator and now conservator, the Federal Housing Finance Agency, not challenging the executives’ exit compensation packages. We’ll see on that one.
So, it appears that the GSEs wisely opted to consent. The FHFA conservatorship now eliminates all of the powers of ownership the GSE’s stockholders and board of directors exercised and places them with the FHFA. But like wading into a cold pool, the government has only treaded slowly in — at least for now. Freddie and Fannie have each entered into preferred stock purchase agreements with the government for up to $100 billion each. In other words, the GSEs can each now force the government to purchase up to this amount in their preferred stock to provide them with financing. The preferred pays to the government a 10 percent yield if paid in cash and 12 percent if paid in kind (i.e., more preferred shares), well below the 20 percent or so the current GSE preferred is yielding. The Subtle Takeover by Steven M. Davidoff
September 8, 2008, 7:40 am Read More