Title 12, Banks and BankingRelease 119-102
§2125 Dividends
Title 12 › CHAPTER 23 — FARM CREDIT SYSTEM › SUBCHAPTER III — BANKS FOR COOPERATIVES › Part A — Banks for Cooperatives › § 2125
Summary
The bank can pay profit payments only on nonvoting investment stock. The bank’s board must approve those payments, and they have to follow the Farm Credit Administration’s overall guidance.
Full Legal Text
Title 12, §2125
Banks and Banking, Source: USLM XML via OLRC
Dividends may be payable only on nonvoting investment stock, if declared by the board of directors of the bank, subject to the general direction of the Farm Credit Administration.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1988—Pub. L. 100–233 struck out “other than stock held by the Farm Credit Administration,” after “investment stock,”. 1985—Pub. L. 99–205 struck out “the Governor of” before “the Farm Credit Administration” and inserted “, subject to the general direction of the Farm Credit Administration”.
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.
Reference
Citations & Metadata
Citation
12 U.S.C. § 2125
Title 12, Banks and Banking
Last Updated
Aug 21, 2026
Release point: 119-102