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

Summary

Submit the plan and the materials you will give to voters (voting stockholders and, when required, guaranty‑fund contributors) to the Farm Credit Administration Board before asking for approval of a merger, transfer of lending authority, dissolution, or termination. The materials must list expected benefits and possible disadvantages. If the Board approves or takes no action for 60 days, the plan may be voted on. If the Board disapproves, it must explain and the plan cannot be voted. A plan may include a proposed federal charter; the Board must issue that charter on approval unless it conflicts with the law.

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.

§2279e Approval of Disclosure Information and Issuance of Charters