
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: 12USC2202b]

 
                       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 C--Rights of Borrowers; Loan Restructuring
 
Sec. 2202b. Effect of restructuring on borrower stock


(a) Farm Credit Bank

    If a Farm Credit Bank forgives and writes off, under section 2202a 
of this title, 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.

(b) Production credit association

    If a production credit association forgives and writes off, under 
section 2202a of this title, 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.

(c) Retention of stock

    Notwithstanding subsections (a) and (b) of this section, 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.

(Pub. L. 92-181, title IV, Sec. 4.14B, as added Pub. L. 100-233, title 
I, Sec. 102(a), Jan. 6, 1988, 101 Stat. 1577; amended Pub. L. 100-399, 
title I, Sec. 102(g), Aug. 17, 1988, 102 Stat. 990.)


                               Amendments

    1988--Subsec. (a). Pub. L. 100-399 substituted in subsec. heading 
``Farm Credit Bank'' for ``Federal land bank'' and in text ``a Farm 
Credit Bank'' for ``a Federal land bank'' and ``, to the extent provided 
for in the bylaws of the bank relating to capitalization, the bank 
shall'' for ``the Federal land bank shall''.


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-399 effective immediately after amendment 
made by section 401 of Pub. L. 100-233, which was effective 6 months 
after Jan. 6, 1988, see section 1001(b) of Pub. L. 100-399, set out as a 
note under section 2002 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 2162, 2202a, 2279aa-9 of 
this title.
