
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: 12USC2279c-1]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
          SUBCHAPTER VII--RESTRUCTURING OF SYSTEM INSTITUTIONS
 
Part B--Mergers, Transfers of Assets, and Powers of Associations Within 
                               a District
 
            subpart 2--merger of like and unlike associations
 
Sec. 2279c-1. Merger of associations


(a) In general

    Two or more associations within the same district, whether or not 
organized under the same subchapter of this chapter, may merge into a 
single entity (hereinafter in this subchapter referred to as a ``merged 
association'') if the plan of merger is approved by--
        (1) the Farm Credit Administration Board;
        (2) the boards of directors of the associations;
        (3) a majority of the shareholders of each association voting, 
    in person or by proxy, at a duly authorized stockholders' meeting; 
    and
        (4) the Farm Credit Bank.

(b) Powers, obligations, and consolidation

                     (1) Powers and obligations

        Except as otherwise provided by this subchapter, a merged 
    association shall--
            (A) possess all powers granted under this chapter to the 
        associations forming the merged association; and
            (B) be subject to all of the obligations imposed under this 
        chapter on the associations forming the merged association.

                          (2) Consolidation

        The Farm Credit Administration shall issue regulations that 
    establish the manner in which the powers and obligations of the 
    associations that form the merged association are consolidated and, 
    to the extent necessary, reconciled in the merged association.

(c) Stock issuance

                         (1) Plan of merger

        Subject to section 2154a of this title, the number of shares of 
    capital stock issued by a merged association to the stockholders of 
    any association forming such merged association, and the rights and 
    privileges of such shares (including voting power, preferences on 
    liquidation, and the right to dividends), shall be determined by the 
    plan of merger adopted by the merged associations.

                         (2) Capitalization

        In accordance with section 2154a of this title, each merged 
    association shall provide, through bylaws and subject to Farm Credit 
    Administration regulations, for the capitalization of the 
    association and the manner in which association stock shall be 
    issued, held, transferred, and retired, and association earnings 
    shall be distributed.

(Pub. L. 92-181, title VII, Sec. 7.8, as added Pub. L. 100-233, title 
IV, Sec. 416, Jan. 6, 1988, 101 Stat. 1647; amended Pub. L. 100-399, 
title IV, Sec. 408(k), (l), Aug. 17, 1988, 102 Stat. 1002.)


                               Amendments

    1988--Subsec. (b)(2). Pub. L. 100-399, Sec. 408(k), struck out 
second sentence, which directed that, following a merger under 
subsection (a) of this section, the provisions of section 2154a of this 
title were to be applicable to the merged association.
    Subsec. (c)(2). Pub. L. 100-399, Sec. 408(l), substituted 
``Capitalization'' for ``Plan of capitalization'' as par. (2) heading 
and amended text generally. Prior to amendment, text read as follows: 
``The number of shares of capital stock, and the rights and privileges 
thereof, issued by a merged association after a merger shall be 
determined by the Board of Directors of the merged association, with the 
approval of the supervising bank, and shall be consistent with section 
2154a of this title and the regulations issued by the Farm Credit 
Administration.''
    Subsec. (c)(3). Pub. L. 100-399, Sec. 408(l), struck out par. (3) 
which read as follows: ``Voting stock of a merged association shall be 
issued to and held by farmers, ranchers, or producers or harvesters of 
aquatic products who are or were, immediately prior to the merger, 
direct borrowers from one of the associations forming the merged 
association or the supervising bank of such merged association.''
    Subsec. (d). Pub. L. 100-399, Sec. 408(l), struck out subsec. (d) 
which read as follows: ``The plan of merger shall provide for the 
issuance, transfer, and retirement of stock and the distribution of 
earnings in accordance with the provisions of section 2154a of this 
title.''


                    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.

                  Section Referred to in Other Sections

    This section is referred to in sections 2279b, 2279c-2, 2279f-1 of 
this title.
