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US CodeTitle 12Chapter 23§ 2202b

§ 2202b

Effect of restructuring on borrower stock

12 U.S.C. § 2202b.
2 min read
Subchapter: PROVISIONS APPLICABLE TO TWO OR MORE CLASSES OF INSTITUTIONS OF THE SYSTEM
((a)) ** Farm Credit Bank** If a Farm Credit Bank forgives and writes off, under , any of the principal outstanding on a loan made to any borrower, the Federal land bank association of which the borrower is a member and stockholder shall cancel the same dollar amount of borrower stock held by the borrower in respect of the loan, up to the total amount of such stock, and, to the extent provided for in the bylaws of the bank relating to its capitalization, the bank shall retire an equal amount of stock owned by the Federal land bank association.section 2202a of this title ((b)) ** Production credit association** If a production credit association forgives and writes off, under , any of the principal outstanding on a loan made to any borrower, the association shall cancel the same dollar amount of borrower stock held by the borrower in respect of the loan, up to the total amount of such stock.section 2202a of this title ((c)) ** Retention of stock** Notwithstanding subsections (a) and (b), the borrower shall be entitled to retain at least one share of stock to maintain the borrower’s membership and voting interest in the association.

Release: pl-119-59 (2025-12-18)

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