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12 U.S.C. § 2279e — Reconsideration
Federal law — U.S. Code and appendices · legal_authorities
**(a) Period** A stockholder vote in favor of—
(1) the merger of districts under this chapter;
(2) the merger of banks within a district under [section 2279a of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2279a&num=0&edition=prelim);
(3) 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2279b&num=0&edition=prelim);
(4) the merger of two or more associations under section 2279c–1 or 2279f–1 of this title;
(5) the termination of the status of an institution as a System institution under [section 2279d of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2279d&num=0&edition=prelim); or
(6) the merger of similar banks under [section 2279f of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2279f&num=0&edition=prelim);
shall not take effect except in accordance with subsection (b).
**(b) Reconsideration**
(1) **Notice** — 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.
(2) **Effective date** — 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).
(3) **Petition filed** — If
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Stable record: federal_law:legal_authorities:record_usc_53272791d9f3e12a2de539ee
Source file: Laws/federal/codes/united-states-code/title-12/section-2279e-reconsideration--ef677fac9e.md
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Source location: Title 12, Chapter 23, § 2279e; chapter-023-farm-credit-system.md
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**(a) Period** A stockholder vote in favor of—
(1) the merger of districts under this chapter;
(2) the merger of banks within a district under [section 2279a of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2279a&num=0&edition=prelim);
(3) 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2279b&num=0&edition=prelim);
(4) the merger of two or more associations under section 2279c–1 or 2279f–1 of this title;
(5) the termination of the status of an institution as a System institution under [section 2279d of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2279d&num=0&edition=prelim); or
(6) the merger of similar banks under [section 2279f of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2279f&num=0&edition=prelim);
shall not take effect except in accordance with subsection (b).
**(b) Reconsideration**
(1) **Notice** — 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.
(2) **Effective date** — 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).
(3) **Petition filed** — 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) 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
(B) 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.
(4) **Vote on reconsideration** — 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.
(5) **Failure to file petition** — 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.
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Federal law — U.S. Code and appendices · legal_authorities
### Statutory Notes
Section, Pub. L. 92–181, title VII, § 7.4, as added Pub. L. 100–233, title IV, § 416, Jan. 6, 1988, 101 Stat. 1646, related to earnings, reserves, and distributions with regard to merged banks. See [section 2279a–3 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2279a-3&num=0&edition=prelim).
#### Effective Date of Repeal
Repeal effective as if repealing provisions had been 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 an Effective Date of 1988 Amendment note under [section 2002 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2002&num=0&edition=prelim).
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 2279b
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Voluntary liquidation** The Corporation may voluntarily liquidate only with the consent of, and in accordance with a plan of liquidation approved by, the Farm Credit Administration Board.
**(b) Involuntary liquidation**
(1) **In general** — The Farm Credit Administration Board may appoint a conservator or receiver for the Corporation under the circumstances specified in [section 2183(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2183/b&num=0&edition=prelim).
(2) **Application** — In applying [section 2183(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2183/b&num=0&edition=prelim) to the Corporation under paragraph (1)—
(A) the Corporation shall also be considered insolvent if the Corporation is unable to pay its debts as they fall due in the ordinary course of business;
(B) a conservator may also be appointed for the Corporation if the authority of the Corporation to purchase qualified loans or issue or guarantee loan-backed securities is suspended; and
(C) a receiver may also be appointed for the Corporation if—
(i)
(I) the authority of the Corporation to purchase qualified loans or issue or guarantee loan-backed securities is suspended; or
(II) the Corporation is classified under [section 2279bb–4 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2279bb-4&num=0&edition=prelim) as within level III or IV and the alternative actions available under part B are not satisfactory; and
(ii) the Farm Credit Administration determines that the appointment of a conservator would not be appropriate.
(3) **No effect on supervisory actions** — The grounds for appointment of a conservator for the Corporation
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 2002
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Conditions** A System institution may terminate the status of the institution as a System institution if—
(1) the institution provides written notice to the Farm Credit Administration Board not later than 90 days prior to the proposed termination date;
(2) the termination is approved by the Farm Credit Administration Board;
(3) the appropriate Federal or State authority grants approval to charter the institution as a bank, savings and loan association, or other financial institution;
(4) the institution pays to the Farm Credit Insurance Fund the amount by which the total capital of the institution exceeds 6 percent of the assets;
(5) the institution pays or makes adequate provision for payment of all outstanding debt obligations of the institution;
(6) the termination is approved by a majority of the stockholders of the institution voting, in person or by written proxy, at a duly authorized stockholders’ meeting, held prior to giving notice to the Farm Credit Administration Board; and
(7) the institution meets such other conditions as the Farm Credit Administration Board by regulation considers appropriate.
**(b) Effect** On termination of its status as a System institution—
(1) the Farm Credit Administration Board shall revoke the charter of the institution; and
(2) the institution shall no longer be an instrumentality of the United States under this chapter.
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 2279f
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** Two or more associations within the same district, whether or not organized under the same subchapter of this chapter, may merge into a single entity (hereinafter in this subchapter referred to as a “merged association”) if the plan of merger is approved by—
(1) the Farm Credit Administration Board;
(2) the boards of directors of the associations;
(3) a majority of the shareholders of each association voting, in person or by proxy, at a duly authorized stockholders’ meeting; and
(4) the Farm Credit Bank.
**(b) Powers, obligations, and consolidation**
(1) **Powers and obligations** — Except as otherwise provided by this subchapter, a merged association shall—
(A) possess all powers granted under this chapter to the associations forming the merged association; and
(B) be subject to all of the obligations imposed under this chapter on the associations forming the merged association.
(2) **Consolidation** — The Farm Credit Administration shall issue regulations that establish the manner in which the powers and obligations of the associations that form the merged association are consolidated and, to the extent necessary, reconciled in the merged association.
**(c) Stock issuance**
(1) **Plan of merger** — Subject to [section 2154a of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2154a&num=0&edition=prelim), the number of shares of capital stock issued by a merged association to the stockholders of any association forming such merged association, and the rights and privileges of such shares (including voting power, preferences on liquidation, and the right to dividends), shall be determined by the plan of merger adopted by the merged associations.
(2) **Capitalization** — In accordance with [section
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 2279d
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Corporate name**
(1) **Use of corporate name** — It shall be unlawful for any person or entity to use the words “Farm Credit System Insurance Corporation” or any combination of such words that would have the effect of leading the public to believe that there is any connection between such person or entity and the Corporation, by virtue of the name under which such person or entity does business.
(2) **False representation**
(A) *By outside person or entities* — It shall be unlawful for any person or entity to falsely represent by any device, that the notes, bonds, debentures, or other obligations of the person or entity are insured or in any way guaranteed by the Corporation.
(B) *System banks* — It shall be unlawful for any insured System bank or person that markets insured obligations to falsely represent the extent to which or the manner in which such obligations are insured by the Corporation.
(3) **Penalty** — Any person or entity that willfully violates any provision of this subsection shall be fined not more than $1,000, imprisoned for not more than 1 year, or both.
**(b) Payments or distributions while in default**
(1) **In general** — It shall be unlawful for any insured System bank to pay any dividends on bank stock or participation certificates or interest on the capital notes or debentures of such bank (if such interest is required to be paid only out of net profits) or distribute any of the capital assets of such bank while the bank remains in default in the payment of any premium due to the Corporation.
(2) **Liability of directors** — Each director or officer of any insured System bank who willfully participates in the declaration or payment of any dividend or interest or in any distribution in violation of this subsection shall be fined
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 2279a
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Equalization of loan-making powers**
(1) **In general**
(A) *Federal land bank associations* — Subject to paragraph (2), any association that owns a Federal land bank association authorized as of January 1, 2007, to make long-term loans under subchapter I in its chartered territory within the geographic area described in subsection (b) may make short- and intermediate-term loans and otherwise operate as a production credit association under subchapter II within that same chartered territory.
(B) *Production credit associations* — Subject to paragraph (2), any association that under its charter has subchapter I lending authority and that owns a production credit association authorized as of January 1, 2007, to make short- and intermediate-term loans under subchapter II in the geographic area described in subsection (b) may make long-term loans and otherwise operate, directly or through a subsidiary association, as a Federal land bank association or Federal land credit association under subchapter I in the geographic area.
(C) *Farm Credit Bank* — Notwithstanding [section 2252(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2252/a&num=0&edition=prelim), the Farm Credit Bank with which any association had a written financing agreement as of January 1, 2007, may make loans and extend other comparable financial assistance with respect to, and may purchase, any loans made under the new authority provided under subparagraph (A) or (B) by an association exercising such authority.
(2) **Required approvals** — An association may exercise the additional authority provided for in paragraph (1) only after the exercise of the authority is approved by—
(A) the board of directors of the association; and
(B) a majority
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 2279c–2
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Federal law — U.S. Code and appendices · legal_authorities
Page 1412
TITLE 12—BANKS AND BANKING
§ 2279e
institution pays to the Farm Credit Assistance Fund,
as created under section 2278b–5 of this title, if the ter-
mination is prior to January 1, 1992, or pays to the
Farm Credit Insurance Fund, if the termination is after
such date, the amount by which the total capital of the
institution exceeds, 6 percent of the assets;’’.
PART
C—APPROVAL
OF
DISCLOSURE
INFORMA-
TION
AND
ISSUANCE
OF
CHARTERS
BY
THE
FARM CREDIT ADMINISTRATION BOARD
§ 2279e. Approval of disclosure information and
issuance of charters
(a) Disclosure of information
(1) Approval of plan
With respect to any plan of merger, transfer
of lending authority, dissolution, or termi-
nation, prior to submission to the voters (vot-
ing stockholders and, where required, contrib-
utors to guaranty funds) of the institutions in-
volved, such plan shall be submitted to the
Farm Credit Administration Board, together
with all information that is to be distributed
to the voters with respect to the contemplated
action, including an enumerated statement of
the anticipated benefits and potential dis-
advantages of such action.
(2) Notice of approval
On notification that the Farm Credit Ad-
ministration Board has approved such plan for
submission to the stockholders, or after 60
days of no action on the plan by the Board, the
submitting institutions may submit the plan,
together with the disclosure information, to
the voters for the prescribed vote.
(b) Notice of reasons for disapproval
If the Farm Credit Administration Board dis-
approves the plan for submission to the stock-
holders, notification to the submitting institu-
tions shall specify the reasons for the deter-
mination by the Board. If such plan is deter-
mined to be inadequate, it shall not be su
Source: Supplied 2024 U.S. Code historical extraction · 12 U.S.C. § 2279e
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