§2279e — Title 12 Banks and Banking | U.S. Code

§2279e Approval of disclosure information and issuance of charters

Title 12 › Chapter CHAPTER 23— - FARM CREDIT SYSTEM › Subchapter SUBCHAPTER VII— - RESTRUCTURING OF SYSTEM INSTITUTIONS › Part Part C— - Approval of Disclosure Information and Issuance of Charters by the Farm Credit Administration Board › § 2279e

Last updated Apr 6, 2026|Official source

Summary

Before any merger, transfer of lending authority, dissolution, or ending of an institution can be sent to voters (voting stockholders and, when required, contributors to guaranty funds), the plan must be given to the Farm Credit Administration Board. The plan must include all materials that voters will get, including a numbered list of expected benefits and possible downsides. If the Board approves the plan, or does not act within 60 days, the institutions may send it to the voters for the required vote. If the Board rejects the plan, it must tell the institutions why. A plan found inadequate cannot be sent to voters. A merger or transfer plan may also include a proposed new or changed Federal charter. If the Board approves the plan, the Board must issue that charter unless it conflicts with the chapter.

Title 12, §2279e

Banks and Banking — Source: USLM XML via OLRC

(a)(1)With respect to any plan of merger, transfer of lending authority, dissolution, or termination, prior to submission to the voters (voting stockholders and, where required, contributors to guaranty funds) of the institutions involved, 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 disadvantages of such action.

(2)On notification that the Farm Credit Administration 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)If the Farm Credit Administration Board disapproves the plan for submission to the stockholders, notification to the submitting institutions shall specify the reasons for the determination by the Board. If such plan is determined to be inadequate, it shall not be submitted to the voters for a vote.

(c)Each plan of merger or transfer of lending authority may include a proposed new or revised Federal charter for the merged or transferee entity. The Farm Credit Administration Board shall issue such charter on the approval of the plan, as prescribed in this subchapter, unless the Board determines that the charter submitted is not consistent with this chapter.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1991—Subsec. (a)(2). Pub. L. 102–237 substituted “60 days” for “30 days”. 1988—Subsec. (a)(1). Pub. L. 100–399 substituted “transfer of lending authority” for “transfer or assignment of lending authority” and “the institutions involved” for “such institutions”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1988 AmendmentAmendment 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.