12-U.S.C.-2279F
§2279F – Merger of Similar Banks
Pathway
Title 12 > Chapter 23 > Subchapter VII > Part D > Section 2279f
Details
- Reference: Section 2279f
- Legend: §2279F – Merger of Similar Banks
- USCode Year: 2013
Provision Content
(a) In general
Banks organized or operating under this chapter may merge with banks in other districts operating under the same subchapter if the plan of merger is approved by—
(1) the Farm Credit Administration Board;
(2) the respective Boards of Directors of the banks involved;
(3) a majority vote of the stockholders of each bank voting, in person or by proxy, at a duly authorized stockholders’ meeting, with each association having a number of votes equal to the number of such associations voting stockholders; and
(4) in the case of a bank for cooperatives, a majority of the total equity interests in such merging bank for cooperatives (including allocated, but not unallocated, surplus and reserves) held by those stockholders or subscribers to the guaranty fund of the bank voting.
(b) Powers and capitalization
Sections 2279a–2 and 2279a–3 of this title shall apply to banks merged under this section.
(c) Board of directors
(1) In general
After a merger under subsection (a) of this section, a board of directors shall be created for the resulting bank.
(2) Composition
The board shall be composed of—
(A) two directors elected by each of the bank boards, with at least one such director from each bank being elected by the eligible stockholders of, or subscribers to, the guaranty fund of the merging banks; and
(B) one outside director elected by the directors elected under subparagraph (A).
(3) Outside director
(A) Qualifications
The outside director elected under paragraph (2)(B) shall be experienced in financial services and credit, and within the 2-year period prior to such election, shall not have been a borrower from, shareholder in, or director, officer, employee, or agent of any institution of the Farm Credit System.
(B) Failure to elect
If the other members of the board fail to elect an outside director, the Farm Credit Administration Board shall appoint a qualified person to serve on the board of directors until such member is so elected.
(4) Bylaws
Notwithstanding paragraph (2), the bylaws of the merged bank may, with the approval of the Farm Credit Administration, provide for a different number of directors to be selected in a different manner, except that the bylaws shall provide for at least one outside director.
(Pub. L. 92–181, title VII, §7.12, as added Pub. L. 100–233, title IV, §416, Jan. 6, 1988, 101 Stat. 1652; amended Pub. L. 100–399, title IV, §408(q), (r), Aug. 17, 1988, 102 Stat. 1002, 1003.)
Amendments
1988—Subsec. (b). Pub. L. 100–399, §408(q), substituted Powers and capitalization for Procedures in heading and, in amending text generally, substituted Sections 2279a–2 and 2279a–3 of this title for The provisions of sections 2279a–2 through 2279a–4 of this title.
Subsec. (c)(2)(B). Pub. L. 100–399, §408(r), substituted directors for members.
Effective Date of 1988 Amendment
Amendment by Pub. L. 100–399 effective as if enacted immediately after enactment of Pub. L. 100–233, which was approved Jan. 6, 1988, see section 1001(a) of Pub. L. 100–399, set out as a note under section 2002 of this title.
U.S. Encyclopedia of Law Coverage
12-U.S.C.-2278B-7 in the Legal Encyclopedia: Banking Law
In this entry about 12-U.S.C.-2278B-7, 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.-2279A-2 in the Legal Encyclopedia: Farm Credit System
In this entry about 12-U.S.C.-2279A-2, 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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