12 U.S.C. § 2202b — Effect of restructuring on borrower stock
submitted 38 years ago by Pub. L. 92-181 to r/title-12-BANKS-AND-BANKING · 197 words · no verdicts yet
This section addresses Effect of restructuring on borrower stock. It states the duties, permissions, limits, and procedures described below.
(a) Farm Credit* Bank. If a Farm Credit Bank forgives and writes off part of a borrower’s outstanding principal under section 2202a, the Federal land bank association in which the borrower is a member and stockholder must cancel the same dollar amount of the borrower stock held for that loan*, up to the total stock amount. To the extent the bank’s capitalization bylaws provide, the bank must retire the same amount of stock owned by the association.
(b) Production credit association. If a production credit association forgives and writes off part of a borrower’s outstanding principal under section 2202a, it must cancel the same dollar amount of the borrower stock held for that loan, up to the total stock amount.
(c) Retention of stock. Despite subsections (a) and (b), the borrower may keep at least one share of stock to preserve membership and voting interest in the association.
If a Farm Credit Bank forgives and writes off, under section 2202a of this title, any of the principal outstanding on a loan* made to any borrower, the Federal land bank association of which the borrower is a member and stockholder shall cancel the same dollar amount of borrower stock held by the borrower in respect of the loan, up to the total amount of such stock, and, to the extent provided for in the bylaws of the bank relating to its capitalization, the bank shall retire an equal amount of stock owned by the Federal land bank association.
If a production credit association forgives and writes off, under section 2202a of this title, any of the principal outstanding on a loan made to any borrower, the association shall cancel the same dollar amount of borrower stock held by the borrower in respect of the loan, up to the total amount of such stock.
Notwithstanding subsections (a) and (b), the borrower shall be entitled to retain at least one share of stock to maintain the borrower’s membership and voting interest in the association.
Source credit: (Pub. L. 92–181, title IV, § 4.14B, as added Pub. L. 100–233, title I, § 102(a), Jan. 6, 1988, 101 Stat. 1577; amended Pub. L. 100–399, title I, § 102(g), Aug. 17, 1988, 102 Stat. 990.)
- 1988Enacted · Pub. L. 92-181 · 101 Stat. 1577
- 1988Amended · Pub. L. 100-399 · 102 Stat. 990
A history note hasn’t been published yet. The record shows enactment by Pub. L. 92-181 on 1988-01-06.
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