PRIA, Government Policy, Made Personal

Summary

Banks in a district can combine into one bank if a merger plan gets four approvals. The Farm Credit Administration Board must approve it. Each bank’s board must approve it. A majority of each bank’s stockholders voting at a proper meeting must approve, with each association casting as many votes as it has voting stockholders. For a bank for cooperatives, a majority of the total equity interests voting must approve, counting allocated (but not unallocated) surplus and reserves held by stockholders or by guaranty‑fund subscribers.

Title 12, §2279a

Banks and Banking, Source: USLM XML via OLRC

The banks within a district may merge into a single entity (hereinafter in this subchapter referred to as a “merged bank”) if the plan of merger is approved by—

(1)the Farm Credit Administration Board;

(2)the respective boards of directors of the banks involved;

(3)a majority of the stockholders of each bank voting, in person or by proxy, at a duly authorized stockholders’ meeting with each association entitled to cast a number of votes equal to the number of its voting stockholders; and

(4)in the case of a bank for cooperatives, a majority of the total equity interests in such merging bank for cooperatives (including allocated, but not unallocated, surplus and reserves) held by those stockholders or subscribers to the guaranty fund of the bank voting.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1988—Pub. L. 100–399 substituted “The banks” for “Two or more banks” in introductory provisions, and in par. (3) substituted “with each association entitled to cast a number of votes equal to the number of its voting” for “in accordance with the provisions of section 2223(c) of this title relating to the casting of votes by”.

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.

§2279a Power to Merge