12 U.S.C. § 2279c–2 — Reconsideration
submitted 38 years ago by Pub. L. 92-181 to r/title-12-BANKS-AND-BANKING · 454 words · no verdicts yet
Certain mergers, lending-authority transfers, and terminations cannot take effect immediately after a stockholder vote. Stockholders receive notice and may force reconsideration with a petition signed by at least 15 percent of affected stockholders.
(a) A stockholder vote favoring (1) a district merger; (2) an in-district bank merger under section 2279a; (3) transfer of a Federal land bank’s or qualifying merged bank’s lending authority under section 2279b; (4) a merger under section 2279c–1 or 2279f–1; (5) ending an institution’s System status under section 2279d; or (6) a similar-bank merger under section 2279f takes effect only as (b) provides. (b)(1) Within 30 days after such a vote, the officer or employee recording it must ensure that all voting-entity stockholders receive the final results. (2) A voluntary merger, transfer, or termination approved by stockholders of two or more banks or associations cannot take effect until 30 days after notice. (3) If, within those 30 days, a petition signed by at least 15 percent of stockholders of one or more affected banks or associations is presented to the Farm Credit* Administration, the action waits 60 days after notice and a special meeting must be held during that period. (4) If a majority voting at that meeting, in person* or by written proxy, votes against the action, it does not occur. (5) If no petition is filed by the 60th day, or a timely petition lacks 15-percent signatures, the action takes effect under its plan.
A stockholder vote in favor of—
the merger of districts under this chapter;
the merger of banks within a district under section 2279a of this title;
the transfer of the lending authority of a Federal land bank or a merged bank having a Federal land bank as one of its constituents, under section 2279b of this title;
the merger of two or more associations under section 2279c–1 or 2279f–1 of this title;
the termination of the status of an institution as a System institution under section 2279d of this title; or
the merger of similar banks under section 2279f of this title;
shall not take effect except in accordance with subsection (b).
Not later than 30 days after a stockholder vote in favor of any of the actions described in subsection (a), the officer or employee that records such vote shall ensure that all stockholders of the voting entity receive notice of the final results of the vote.
A voluntary merger, transfer, or termination that is approved by a vote of the stockholders of two or more banks or associations shall not take effect until the expiration of 30 days after the date on which the stockholders of such banks or associations are notified of the final result of the vote in accordance with paragraph (1).
If a petition for reconsideration of a merger, transfer, or termination vote, signed by at least 15 percent of the stockholders of one or more of the affected banks or associations, is presented to the Farm Credit* Administration within 30 days after the date of the notification required under paragraph (1)—
a voluntary merger, transfer, or termination shall not take effect until the expiration of 60 days after the date on which the stockholders were notified of the final result of the vote; and
a special meeting of the stockholders of the affected banks or associations shall be held during the period referred to in subparagraph (A) to reconsider the vote.
If a majority of stockholders of any one of the affected banks or associations voting, in person* or by written proxy, at a duly authorized stockholders’ meeting, vote against the proposed merger, transfer, or termination, such action shall not take place.
If a petition for reconsideration of such vote is either not filed prior to the 60th day after the vote or, if timely filed, is not signed by at least 15 percent of the stockholders, the merger, transfer, or termination shall become effective in accordance with the plan of merger, transfer, or termination.
Source credit: (Pub. L. 92–181, title VII, § 7.9, as added Pub. L. 100–233, title IV, § 416, Jan. 6, 1988, 101 Stat. 1648; amended Pub. L. 100–399, title IV, § 408(n), (o), Aug. 17, 1988, 102 Stat. 1002; Pub. L. 115–334, title V, § 5411(40), Dec. 20, 2018, 132 Stat. 4683.)
- 1988Enacted · Pub. L. 92-181 · 101 Stat. 1648
- 1988Amended · Pub. L. 100-399 · 102 Stat. 1002
- 2018Amended · Pub. L. 115-334 · 132 Stat. 4683
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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