
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: 12USC2127]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
                 SUBCHAPTER III--BANKS FOR COOPERATIVES
 
                     Part A--Banks for Cooperatives
 
Sec. 2127. Guaranty fund subscriptions in lieu of stock

    If any cooperative association is not authorized under the laws of 
the State in which it is organized to take and hold stock in a bank for 
cooperatives, the bank shall, in lieu of any requirement for stock 
purchase, require the association to pay into or have on deposit in a 
guaranty fund, or the bank may retain out of the amount of the loan and 
credit to the guaranty fund account of the borrower, a sum equal to the 
amount of stock which the association would otherwise be required to 
own. Each reference to stock of the banks for cooperatives in this 
chapter shall include such guaranty fund equivalents. The holder of the 
guaranty fund equivalent and the bank shall each be entitled to the same 
rights and obligations with respect thereto as the rights and 
obligations associated with the class or classes of stock involved.

(Pub. L. 92-181, title III, Sec. 3.6, Dec. 10, 1971, 85 Stat. 604.)
