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12 U.S.C. § 2183 — Protection of borrower stock
Federal law — U.S. Code and appendices · legal_authorities
**(a) Retirement of stock** Notwithstanding any other section of this chapter, each institution of the Farm Credit System, when retiring eligible borrower stock in accordance with this chapter, shall retire such stock at par value.
**(b) Certain powers not affected** This section does not affect the authority of any institution of the Farm Credit System—
(1) to retire or cancel borrower stock at par value for application against a loan in default;
(2) to cancel borrower stock at par value under [section 2202b of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2202b&num=0&edition=prelim); or
(3) to apply, against any outstanding indebtedness to a System association arising out of or in connection with a liquidation referred to in subsection (d)(2), the par value of borrower stock frozen in such liquidation.
**(c) Inability to retire stock at par value**
(1) **In general** — If an institution is unable to retire eligible borrower stock at par value due to the liquidation of the institution, the Farm Credit System Insurance Corporation, acting as receiver, shall retire such stock at par value as would have been retired in the ordinary course of business of the institution.
(2) **Funding** — The Farm Credit System Insurance Corporation shall use such funds from the Farm Credit Insurance Fund as are sufficient to carry out this section.
**(d) Definitions** For purposes of this section:
(1) **Borrower stock** — The term “borrower stock” means voting and nonvoting stock, equivalent contributions to a guaranty fund, participation certificates, allocated equities, and other similar equities that are subject to retirement under a revolving cycle issued by any System institution and held by any person other than any System instituti
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Source file: Laws/federal/codes/united-states-code/title-12/section-2183-protection-of-borrower-stock--53834bd427.md
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Source location: Title 12, Chapter 23, § 2183; chapter-023-farm-credit-system.md
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**(a) Retirement of stock** Notwithstanding any other section of this chapter, each institution of the Farm Credit System, when retiring eligible borrower stock in accordance with this chapter, shall retire such stock at par value.
**(b) Certain powers not affected** This section does not affect the authority of any institution of the Farm Credit System—
(1) to retire or cancel borrower stock at par value for application against a loan in default;
(2) to cancel borrower stock at par value under [section 2202b of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2202b&num=0&edition=prelim); or
(3) to apply, against any outstanding indebtedness to a System association arising out of or in connection with a liquidation referred to in subsection (d)(2), the par value of borrower stock frozen in such liquidation.
**(c) Inability to retire stock at par value**
(1) **In general** — If an institution is unable to retire eligible borrower stock at par value due to the liquidation of the institution, the Farm Credit System Insurance Corporation, acting as receiver, shall retire such stock at par value as would have been retired in the ordinary course of business of the institution.
(2) **Funding** — The Farm Credit System Insurance Corporation shall use such funds from the Farm Credit Insurance Fund as are sufficient to carry out this section.
**(d) Definitions** For purposes of this section:
(1) **Borrower stock** — The term “borrower stock” means voting and nonvoting stock, equivalent contributions to a guaranty fund, participation certificates, allocated equities, and other similar equities that are subject to retirement under a revolving cycle issued by any System institution and held by any person other than any System institution.
(2) **Eligible borrower stock** — The term “eligible borrower stock” means borrower stock that—
(A) is outstanding on January 6, 1988;
(B) is issued or allocated after January 6, 1988, but prior to the earlier of—
(i) in the case of each bank and association, the date of approval, by the stockholders of such bank or association, of the capitalization requirements of the institution in accordance with [section 2154a of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2154a&num=0&edition=prelim); or
(ii) the date that is 9 months after January 6, 1988;
(C) was, after January 1, 1983, but before January 6, 1988, frozen by an institution that was placed in liquidation; or
(D) was retired at less than par value by an institution that was placed in liquidation after January 1, 1983, but before January 6, 1988.
(3) **Institution** — The term “institution” means a bank or association chartered under this chapter.
(4) **Par value** — The term “par value” means—
(A) in the case of stock, par value;
(B) in the case of participation certificates and other equities and interests not described in subparagraph (C), face or equivalent value; or
(C) in the case of participation certificates and allocated equities subject to retirement under a revolving cycle but that a System institution elects to retire out of order for application against a loan in default or otherwise as provided in this chapter, par or face value discounted, at a rate determined by the institution, to reflect the present value of the equity or interest as of the date of such retirement.
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Federal law — U.S. Code and appendices · legal_authorities
Each bank of the System may purchase its own obligations and the obligations of other banks of the System and may provide for the sale of obligations issued by it, consolidated obligations, or Systemwide obligations through a fiscal agent or agents, by negotiation, offer, bid, syndicate sale, and to deliver such obligations by book entry, wire transfer, or such other means as may be appropriate.
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 2161
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Federal law — U.S. Code and appendices · legal_authorities
Each of the banks of the System, in order to obtain funds for its authorized purposes, shall have power, subject to regulation by the Farm Credit Administration, and subject to the limitations of paragraph (e) of this section, to—
**(a)** Borrow money from or loan to any other institution of the System, borrow from any commercial bank or other lending institution, issue its notes or other evidence of debt on its own individual responsibility and full faith and credit, and invest its excess funds in such sums, at such times, and on such terms and conditions as it may determine.
**(b)** Issue its own notes, bonds, debentures, or other similar obligations, fully collateralized as provided in [section 2154(c) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2154/c&num=0&edition=prelim) by the notes, mortgages, and security instruments it holds in the performance of its functions under this chapter in such sums, maturities, rates of interest, and terms and conditions of each issue as it may determine with approval of the Farm Credit Administration.
**(c)** Join with any or all banks organized and operating under the same subchapter of this chapter in borrowing or in issuance of consolidated notes, bonds, debentures, or other obligations as may be agreed with approval of the Farm Credit Administration.
**(d)** Join with other banks of the System in issuance of System-wide notes, bonds, debentures, and other obligations in the manner, form, amounts, and on such terms and conditions as may be agreed upon with approval of the Farm Credit Administration. Such System-wide issue by the participating banks and such participations by each bank shall not exceed the limits to which each such bank is subject in the issuance of its individual
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 2154a
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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) Credit review committees**
(1) **In general** — The board of directors of each qualified lender shall establish one or more credit review committees, which shall include farmer board representation.
(2) **Membership** — In no case shall a loan officer involved in the initial decision on a loan serve on the credit review committee when the committee reviews such loan.
**(b) Review of decisions**
(1) **Denials or reductions** — Any applicant for a loan from a qualified lender that has received a written notice issued under [section 2201 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2201&num=0&edition=prelim) of a decision to deny or reduce the loan applied for may submit a written request, not later than 30 days after receiving a notice denying or reducing the amount of the loan application, to obtain a review of the decision before the credit review committee.
(2) **Denials of restructuring** — A borrower of a loan from a qualified lender that has received notice, under [section 2201 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2201&num=0&edition=prelim), of a decision to deny loan restructuring with respect to a loan made to the borrower, if the borrower so requests in writing within 7 days after receiving such notice, may obtain a review of such decision in person before the credit review committee.
**(c) Personal appearance** An applicant for a loan or for restructuring, who is entitled to and has requested a review under this section, may appear in person before the credit review committee, and may be accompanied by counsel or by any other representative of such person’s choice, to seek a reversal of the decision on the application under review.
**(d) Independent a
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 2202b
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Federal law — U.S. Code and appendices · legal_authorities
### Statutory Notes
Section, acts June 16, 1933, ch. 98, title VI, § 65, 48 Stat. 269; Aug. 11, 1955, ch. 785, title I, § 110(a), 69 Stat. 662; July 26, 1956, ch. 741, title I, § 105(p), 70 Stat. 666, provided for receivership and voluntary liquidation for production credit associations and banks for cooperatives. See [section 2183 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2183&num=0&edition=prelim).
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 640–1
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Federal law — U.S. Code and appendices · legal_authorities
Page 1331
TITLE 12—BANKS AND BANKING
§ 2183
erwise as provided in this chapter, par or
face value discounted, at a rate determined
by the institution, to reflect the present
value of the equity or interest as of the date
of such retirement.
(Pub. L. 92–181, title IV, § 4.9A, as added Pub. L.
100–233, title I, § 101, Jan. 6, 1988, 101 Stat. 1572;
amended Pub. L. 100–399, title I, § 101(b)–(d), Aug.
17, 1988, 102 Stat. 989; Pub. L. 115–334, title V,
§ 5411(20), Dec. 20, 2018, 132 Stat. 4681.)
Editorial Notes
PRIOR PROVISIONS
A prior section 4.9A of Pub. L. 92–181, which author-
ized a central reserve for Farm Credit System, was
classified to section 2161 of this title and was repealed
by Pub. L. 100–399, § 101(a).
AMENDMENTS
2018—Subsec. (c). Pub. L. 115–334 inserted par. (1) des-
ignation and heading before ‘‘If an institution’’, sub-
stituted ‘‘the Farm Credit System Insurance Corpora-
tion, acting as receiver,’’ for ‘‘the receiver of the insti-
tution’’ and ‘‘business of the institution.’’ for ‘‘business
of the institution, and—’’, added par. (2), and struck out
former pars. (1) and (2) which read as follows:
‘‘(1) during the 5-year period beginning on January 6,
1988, the Assistance Board shall direct the Financial
Assistance Corporation to provide the receiver with
sufficient funds to enable the receiver to carry out this
subsection; and
‘‘(2) after such 5-year period, the Farm Credit System
Insurance Corporation shall provide the receiver with
sufficient funds from the Farm Credit Insurance Fund
to enable the receiver to carry out this subsection.’’
1988—Subsec. (a). Pub. L. 100–399, § 101(b), struck out
provision that an institution whose capital stock is im-
paired coordinate retirement of stock under this sec-
tion with the activities o
Source: Supplied 2024 U.S. Code historical extraction · 12 U.S.C. § 2183
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