
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: 12USC2183]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
     SUBCHAPTER IV--PROVISIONS APPLICABLE TO TWO OR MORE CLASSES OF 
                       INSTITUTIONS OF THE SYSTEM
 
                           Part B--Dissolution
 
Sec. 2183. Dissolution; voluntary or involuntary liquidation; 
        mergers; receiverships or conservators
        

(a) Voluntary liquidation; consent of Farm Credit Administration; rules 
        and regulations; minimization of adverse effect; voluntary 
        merger; mandatory merger on failure to comply or meet 
        obligations

    No institution of the System shall go into voluntary liquidation 
without the consent of the Farm Credit Administration and with such 
consent may liquidate only in accordance with regulations prescribed by 
the Farm Credit Administration. In the case of a voluntary liquidation 
of an association, such regulations, among other things, shall direct 
the supervising bank to institute such measures as it deems appropriate 
to minimize the adverse effect of the liquidation on those borrowers 
whose loans are purchased by or otherwise transferred to another System 
institution. The Farm Credit Administration Board may require an 
association to merge with another association whenever it determines, 
with the concurrence of the board of the supervising bank, that an 
association has failed to meet its outstanding obligations or failed to 
conduct its operations in accordance with this chapter.

(b) Appointment of conservator or receiver; grounds; action for removal; 
        stay of actions or proceedings

    The Farm Credit Administration Board may appoint a conservator or 
receiver for any System institution on the determination by the Farm 
Credit Administration Board that one or more of the following exists, or 
is occurring, with respect to the institution: (1) insolvency, in that 
the assets of the institution are less than its obligations to its 
creditors and others, including its members; (2) substantial dissipation 
of assets or earnings due to any violation of law, rules, or 
regulations, or to any unsafe or unsound practice; (3) an unsafe or 
unsound condition to transact business; (4) willful violation of a cease 
and desist order that has become final; (5) concealment of books, 
papers, records, or assets of the institution or refusal to submit 
books, papers, records, or other material relating to the affairs of the 
institution for inspection to any examiner or to any lawful agent of the 
Farm Credit Administration; (6) the institution is unable to timely pay 
principal or interest on any insured obligation (as defined in section 
2277a(3) of this title) issued by the institution. The Farm Credit 
Administration Board shall have exclusive power and jurisdiction to 
appoint a conservator or receiver, and such receiver or conservator, 
after the 5-year period beginning on January 6, 1988, shall be the Farm 
Credit System Insurance Corporation. If the Farm Credit Administration 
Board determines that a ground for the appointment of a conservator or 
receiver as herein provided exists, the Farm Credit Administration Board 
may appoint ex parte and without notice a conservator or receiver for 
the institution. In the event of such appointment, the institution, 
within thirty days thereafter, may bring an action in the United States 
district court for the judicial district in which the home office of 
such institution is located, or in the United States District Court for 
the District of Columbia, for an order requiring the Farm Credit 
Administration Board to remove such conservator or receiver, and the 
court shall on the merits, dismiss such action or direct the Farm Credit 
Administration Board to remove such conservator or receiver. On the 
commencement of such an action, the court having jurisdiction of any 
other action or enforcement proceeding authorized under this chapter to 
which the institution is a party shall stay such action or proceeding 
during the pendency of the action for removal of the conservator or 
receiver.

(c) Involuntary liquidation; rules and regulations; minimization of 
        adverse effect

    In the case of an involuntary liquidation of an association, 
regulations of the Farm Credit Administration, among other things, shall 
direct the supervising bank to institute such measures as it deems 
appropriate to minimize the adverse effect of the liquidation on those 
borrowers whose loans are purchased by or otherwise transferred to 
another System institution.

(Pub. L. 92-181, title IV, Sec. 4.12, Dec. 10, 1971, 85 Stat. 612; Pub. 
L. 99-205, title I, Sec. 102, title II, Sec. 205(f)(5), title III, 
Sec. 305, Dec. 23, 1985, 99 Stat. 1679, 1706, 1708; Pub. L. 100-233, 
title III, Sec. 306, title IV, Sec. 418(a)(4), formerly Sec. 415(a)(4), 
Sec. 431(g), title VIII, Sec. 805(r), Jan. 6, 1988, 101 Stat. 1622, 
1653, 1660, 1716, renumbered Sec. 418(a)(4), Pub. L. 100-399, title IV, 
Sec. 409(a), Aug. 17, 1988, 102 Stat. 1003; Pub. L. 100-399, title IX, 
Sec. 901(f), Aug. 17, 1988, 102 Stat. 1007.)


                               Amendments

    1988--Subsec. (a). Pub. L. 100-399, Sec. 901(f), substituted ``board 
of the supervising bank'' for ``district board''.
    Pub. L. 100-233, Sec. 415(a)(4), struck out third sentence which 
provided that Associations may voluntarily merge with other like 
associations upon the vote of a majority of each of their stockholders 
present and voting or voting by written proxy at duly authorized 
meetings, and with the approval of the supervising bank and the Farm 
Credit Administration, and substituted ``Board may require an 
association to merge with another association'' for ``may require such 
merger'' in fourth sentence.
    Subsec. (b). Pub. L. 100-233, Sec. 431(g), substituted ``Farm Credit 
Administration Board'' for ``Farm Credit Administration'' wherever 
appearing other than in cl. (5).
    Pub. L. 100-233, Sec. 306, added cl. (6) and inserted ``, and such 
receiver or conservator, after the 5-year period beginning on January 6, 
1988, shall be the Farm Credit System Insurance Corporation'' before the 
period at end of second sentence.
    Pub. L. 100-233, Sec. 805(r), substituted ``court shall'' for 
``court, shall''.
    1985--Subsec. (a). Pub. L. 99-205, Sec. 205(f)(5), substituted 
``Farm Credit Administration'' for ``Federal Farm Credit Board'' in last 
sentence.
    Pub. L. 99-205, Sec. 305(a), inserted after first sentence a 
sentence requiring the regulations, in the case of a voluntary 
liquidation of an association, to direct the supervising bank to 
institute appropriate measures to minimize the adverse effect of the 
liquidation on borrowers whose loans are purchased by or otherwise 
transferred to another System institution.
    Subsec. (b). Pub. L. 99-205, Sec. 102, in revising subsec. (b), 
substituted expanded provisions respecting appointment of conservator or 
receiver for former provision, which read as follows: ``Upon default of 
any obligation by any institution of the System, such institution may be 
declared insolvent and placed in the hands of a conservator or a 
receiver appointed by the Governor and the proceedings thereon shall be 
in accordance with regulations of the Farm Credit Administration 
regarding such insolvencies.''
    Subsec. (c). Pub. L. 99-205, Sec. 305(b), added subsec. (c).


                    Effective Date of 1988 Amendment

    Amendment 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.


                    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 sections 2278a-6, 2279cc of this 
title.
