12 U.S.C. § 2133: Distribution of assets on…

Summary

When a cooperative bank is liquidated it must first pay all its debts. Next it must repay capital issued before January 1, 1956 and all nonvoting stock at par, then repay voting stock at par. Surplus and reserves as of January 1, 1956 go to holders of stock issued before that date, pro rata with voting stock, and allocated reserves go to those named on the bank’s books. If reserves are needed to pay debts or retire stock, the bank must use unallocated then allocated reserves under rules set by the Farm Credit Administration.

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