PRIA, Government Policy, Made Personal

Summary

Before any plan to merge, transfer lending authority, dissolve, or end an institution is sent to voters (voting stockholders and, when required, guaranty-fund contributors), the institutions must give the plan and everything that will be shown to voters to the Farm Credit Administration Board. That material must include a list of the expected benefits and possible downsides. If the Board approves the plan or takes no action for 60 days, the institutions may send it to voters. If the Board disapproves, it must explain why and the plan cannot go to a vote. A plan can include a proposed new or revised Federal charter, and if the plan is approved the Board must issue that charter unless it conflicts with this law.

Title 12, §2279e

Banks and Banking, Source: USLM XML via OLRC

(a)Disclosure of information

(1)Approval of plan

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)Notice of approval

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)Notice of reasons for disapproval

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)Federal charter

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.

§2279e Approval of Disclosure Information and Issuance of Charters