
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 12USC2124]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
                 SUBCHAPTER III--BANKS FOR COOPERATIVES
 
                     Part A--Banks for Cooperatives
 
Sec. 2124. Stock of banks for cooperatives


(a) Amount

    The Capital stock of each bank for cooperatives shall be in such 
amount as its board determines is required for the purpose of providing 
adequate capital to permit the bank to meet the credit needs of 
borrowers from the bank and such amounts may be increased or decreased 
from time to time in accordance with such needs.

(b) Value

    The capital stock of each bank shall be divided into shares of par 
value of $100 each and may be of such classes as the board may 
determine. Such stock may be issued in fractional shares.

(c) Eligible holders of voting stock

    Voting stock may be issued or transferred to and held only by (i) 
cooperative associations eligible to borrow from the banks and (ii) 
other banks for cooperatives, and shall not be otherwise transferred, 
pledged, or hypothecated except as consented to by the issuing bank 
under regulations of the Farm Credit Administration.

(d) Entitlement to vote

    Each holder of one or more shares of voting stock which is eligible 
to borrow from a bank for cooperatives shall be entitled only to one 
vote and only in the affairs of the bank in the district in which its 
principal office is located unless otherwise authorized under 
regulations issued by the Farm Credit Administration, except that if 
such holder has not been a borrower from the bank in which it holds such 
stock within a period of two years next preceding the date fixed by the 
Farm Credit Administration prior to the commencement of voting, it shall 
not be entitled to vote.

(e) Nonvoting investment stock

    Nonvoting investment stock may be issued in such series and in such 
amounts as may be determined by the board and may be exchanged for 
voting stock or sold or transferred to any person subject to the 
approval of the issuing bank.

(f) Participation certificates

    Participation certificates may be issued to parties to whom voting 
stock may not be issued.

(Pub. L. 92-181, title III, Sec. 3.3, Dec. 10, 1971, 85 Stat. 603; Pub. 
L. 96-592, title III, Sec. 302, Dec. 24, 1980, 94 Stat. 3443; Pub. L. 
99-205, title II, Sec. 205(e)(3), (4), Dec. 23, 1985, 99 Stat. 1705; 
Pub. L. 100-233, title VIII, Secs. 802(o), 805(k), Jan. 6, 1988, 101 
Stat. 1712, 1715.)


                               Amendments

    1988--Subsec. (a). Pub. L. 100-233, Sec. 802(o)(1), struck out ``, 
with the approval of Farm Credit Administration,'' after ``board 
determines''.
    Subsec. (b). Pub. L. 100-233, Sec. 802(o)(2), struck out ``with the 
approval of the Farm Credit Administration'' after ``board may 
determine''.
    Subsec. (d). Pub. L. 100-233, Sec. 805(k), substituted ``by'' for 
``by by'' after ``regulations issued''.
    Subsec. (e). Pub. L. 100-233, Sec. 802(o)(3), struck out ``and 
approved by the Farm Credit Administration'' after ``Board''.
    1985--Subsec. (d). Pub. L. 99-205, Sec. 205(e)(3), inserted ``under 
regulations issued by'' after ``authorized''.
    Subsec. (e). Pub. L. 99-205, Sec. 205(e)(4), struck out ``, except 
for stock held by the Governor,'' before ``may be exchanged''.
    1980--Subsec. (f). Pub. L. 96-592 added subsec. (f).


                    Effective Date of 1985 Amendment

    Amendment 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.

                  Section Referred to in Other Sections

    This section is referred to in section 2142 of this title.
