12-U.S.C.-2202B

12-U.S.C.-2202B

§2202B – Effect of Restructuring On Borrower Stock

Pathway

Title 12 > Chapter 23 > Subchapter IV > Part C > Section 2202b

Details

  • Reference: Section 2202b
  • Legend: §2202B – Effect of Restructuring On Borrower Stock
  • USCode Year: 2013

Provision Content

(a) Farm Credit Bank

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.

(b) Production credit 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.

(c) Retention of stock

Notwithstanding subsections (a) and (b) of this section, the borrower shall be entitled to retain at least one share of stock to maintain the borrowers membership and voting interest in the association.

(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.)

Amendments

1988—Subsec. (a). Pub. L. 100–399 substituted in subsec. heading Farm Credit Bank for Federal land bank and in text a Farm Credit Bank for a Federal land bank and , to the extent provided for in the bylaws of the bank relating to capitalization, the bank shall for the Federal land bank shall.

Effective Date of 1988 Amendment

Amendment by Pub. L. 100–399 effective immediately after amendment made by section 401 of Pub. L. 100–233, which was effective 6 months after Jan. 6, 1988, see section 1001(b) of Pub. L. 100–399, set out as a note under section 2002 of this title.

U.S. Encyclopedia of Law Coverage

Part C – Rights of Borrowers; Loan Restructuring in the Legal Encyclopedia: Banking Law

In this entry about Part C – Rights of Borrowers; Loan Restructuring, find legal reference material, bibliographies and premiere content related to banking law in the American Encyclopedia of Law, presenting a comprehensive view of the United States banking law-specific issues, written by authorities in the field.

12-U.S.C.-2202 in the Legal Encyclopedia: Loans

In this entry about 12-U.S.C.-2202, find legal reference material, bibliographies and premiere content related to loans in the American Encyclopedia of Law, presenting a comprehensive view of the United States loans-specific issues, written by authorities in the field.

Part A – Funding in the Legal Encyclopedia: Farm Credit System

In this entry about Part A – Funding, find legal reference material, bibliographies and premiere content related to farm credit system in the American Encyclopedia of Law, presenting a comprehensive view of the United States farm credit system-specific issues, written by authorities in the field.

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