§2133 — Title 12 Banks and Banking | U.S. Code

Summary

When a cooperative bank is closed, its money is paid out in this order: first its debts; next capital stock issued before January 1, 1956 and all nonvoting stock at face value; then voting stock at face value. Surplus and reserves that existed on January 1, 1956 go first to holders of pre‑1956 stock and, proportionally, to voting stock. Allocated reserves go to the parties shown on the bank’s books, and any remaining surplus goes to outstanding voting stock. If reserves or surplus must be used to pay debts or retire stock, unallocated reserves and surplus and then allocated reserves and surplus must be used up in the order the Farm Credit Administration requires.

Title 12, §2133

Banks and Banking — Source: USLM XML via OLRC

In the case of liquidation or dissolution of any bank for cooperatives, after payment or retirement, first, of all liabilities; second, of all capital stock issued before January 1, 1956, at par, and all nonvoting stock at par; and third, all voting stock at par; any surplus and reserves existing on January 1, 1956, shall be paid to the holders of stock issued before that date, and voting stock pro rata; and any remaining allocated surplus and reserves shall be distributed to those entities to which they are allocated on the books of the bank, and any other remaining surplus shall be paid to the holders of outstanding voting stock. If it should become necessary to use any surplus or reserves to pay any liabilities or to retire any capital stock, unallocated reserves or surplus, allocated reserves and surplus shall be exhausted in accordance with rules prescribed by the Farm Credit Administration.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1988—Pub. L. 100–233 inserted “the” before “Farm Credit Administration”. 1985—Pub. L. 99–205 struck out “, any stock held by the Governor of the Farm Credit Administration at par” before “, and all nonvoting stock at par”, and struck out “stock held by the Governor of the Farm Credit Administration,” before “and voting stock pro rata” in first sentence.

Statutory Notes and Related Subsidiaries

Effective Date

of 1985 AmendmentAmendment by Pub. L. 99–205 effective thirty days after Dec. 23, 1985, see section 401 of Pub. L. 99–205, set out as a note under section 2001 of this title.

§2133 Distribution of assets on liquidation or dissolution