12 U.S.C. § 2133 — Distribution of assets on liquidation or dissolution
submitted 55 years ago by Pub. L. 92-181 to r/title-12-BANKS-AND-BANKING · 154 words · no verdicts yet
This section sets the order for paying liabilities, retiring stock, and distributing surplus and reserves when a bank for cooperatives is liquidated or dissolved. It also explains how reserves and surplus must be used if needed to pay liabilities or retire stock.
In the case of liquidation or dissolution of any bank for cooperatives, after payment or retirement, first, of all liabilities; second, of all capital stock issued before January 1, 1956 , at par, and all nonvoting stock at par; and third, all voting stock at par; any surplus and reserves existing on January 1, 1956 , must be paid to the holders of stock issued before that date, and voting stock pro rata; and any remaining allocated surplus and reserves must be distributed to those entities to which they are allocated on the books of the bank, and any other remaining surplus must be paid to the holders of outstanding voting stock. If it should become necessary to use any surplus or reserves to pay any liabilities or to retire any capital stock, unallocated reserves or surplus, allocated reserves and surplus must be exhausted under rules prescribed by the Farm Credit* Administration.
In the case of liquidation or dissolution of any bank for cooperatives, after payment or retirement, first, of all liabilities; second, of all capital stock issued before January 1, 1956, at par, and all nonvoting stock at par; and third, all voting stock at par; any surplus and reserves existing on January 1, 1956, shall be paid to the holders of stock issued before that date, and voting stock pro rata; and any remaining allocated surplus and reserves shall be distributed to those entities to which they are allocated on the books of the bank, and any other remaining surplus shall be paid to the holders of outstanding voting stock. If it should become necessary to use any surplus or reserves to pay any liabilities or to retire any capital stock, unallocated reserves or surplus, allocated reserves and surplus shall be exhausted in accordance with rules prescribed by the Farm Credit* Administration.
Source credit: (Pub. L. 92–181, title III, § 3.12, Dec. 10, 1971, 85 Stat. 608; Pub. L. 99–205, title II, § 205(e)(9), Dec. 23, 1985, 99 Stat. 1705; Pub. L. 100–233, title VIII, § 805(o), Jan. 6, 1988, 101 Stat. 1716.)
- 1971Enacted · Pub. L. 92-181 · 85 Stat. 608
- 1985Amended · Pub. L. 99-205 · 99 Stat. 1705
- 1988Amended · Pub. L. 100-233 · 101 Stat. 1716
A history note hasn’t been published yet. The record shows enactment by Pub. L. 92-181 on 1971-12-10.
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