
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-2]

 
                       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 3--reconsideration
 
Sec. 2279c-2. Reconsideration


(a) Period

    A stockholder vote in favor of--
        (1) the merger of districts under this chapter;
        (2) the merger of banks within a district under section 2279a of 
    this title;
        (3) the transfer of the lending authority of a Federal land bank 
    or a merged bank having a Federal land bank as one of its 
    constituents, under section 2279b of this title;
        (4) the merger of two or more associations under section 2279c-1 
    or 2279f-1 of this title;
        (5) the termination of the status of an institution as a System 
    institution under section 2279d of this title; or
        (6) the merger of similar banks under section 2279f of this 
    title;

shall not take effect except in accordance with subsection (b) of this 
section.

(b) Reconsideration

                             (1) Notice

        Not later than 30 days after a stockholder vote in favor of any 
    of the actions described in subsection (a) of this section, the 
    officer or employee that records such vote shall ensure that all 
    stockholders of the voting entity receive notice of the final 
    results of the vote.

                         (2) Effective date

        A voluntary merger, transfer, or termination that is approved by 
    a vote of the stockholders of two or more banks or associations 
    shall not take effect until the expiration of 30 days after the date 
    on which the stockholders of such banks or associations are notified 
    of the final result of the vote in accordance with paragraph (1).

                         (3) Petition filed

        If a petition for reconsideration of a merger, transfer, or 
    termination vote, signed by at least 15 percent of the stockholders 
    of one or more of the affected banks or associations, is presented 
    to the Farm Credit Administration within 30 days after the date of 
    the notification required under paragraph (1)--
            (A) a voluntary merger, transfer, or termination shall not 
        take effect until the expiration of 60 days after the date on 
        which the stockholders were notified of the final result of the 
        vote; and
            (B) a special meeting of the stockholders of the affected 
        banks or associations shall be held during the period referred 
        to in subparagraph (A) to reconsider the vote.

                     (4) Vote on reconsideration

        If a majority of stockholders of any one of the affected banks 
    or associations voting, in person or by written proxy, at a duly 
    authorized stockholders' meeting, vote against the proposed merger, 
    transfer, or termination, such action shall not take place.

                    (5) Failure to file petition

        If a petition for reconsideration of such vote is either not 
    filed prior to the 60th day after the vote or, if timely filed, is 
    not signed by at least 15 percent of the stockholders, the merger, 
    transfer, or termination shall become effective in accordance with 
    the plan of merger, transfer, or termination.

(c) Special reconsideration

                     (1) Issuance of regulations

        Notwithstanding any other provision of this chapter, the Farm 
    Credit Administration shall issue regulations under which the 
    stockholders of any association that voluntarily merged with one or 
    more associations after December 23, 1985, and before January 6, 
    1988, may petition for the opportunity to organize as a separate 
    association.

                          (2) Requirements

        The regulations issued by the Farm Credit Administration shall 
    require that--
            (A) the petition be filed within 1 year after the date of 
        the implementation of such regulations;
            (B) the petition be signed by at least 15 percent of the 
        stockholders of any one of the associations that merged during 
        the period;
            (C) the petition describe the territory in which the 
        proposed separate association will operate;
            (D) if the petition is approved--
                (i) the loans of the members of the new association will 
            be transferred from the current association to such new 
            association;
                (ii) the stock, participation certificates, and other 
            similar equities of the current association held by members 
            of the new association will be retired at book value and the 
            proceeds of such will be transferred to the new association, 
            and an equivalent amount of stock, participation 
            certificates, and other similar equities will be issued to 
            the members by the new association; and
                (iii) the other assets of the current association will 
            be distributed equitably among the current association and 
            any resulting new association.

                          (3) Notification

        (A) In general

            Not later than 30 days after the filing of the petition for 
        organization, the current association shall notify its 
        stockholders that a petition to establish the separate 
        association has been filed.

        (B) Contents

            The notification required under this paragraph shall 
        contain--
                (i) the date of a special stockholders' meeting to 
            consider the petition for organization; and
                (ii) an enumerated statement of the anticipated benefits 
            and the potential disadvantages to such stockholders if the 
            new association is established.

        (C) FCA approval

            (i) In general

                All notifications under this paragraph shall be 
            submitted to the Farm Credit Administration Board for 
            approval prior to being distributed to the stockholders.
            (ii) Amending notification

                The Farm Credit Administration Board shall require that, 
            prior to the distribution of the notification to the 
            stockholders, the notification be amended as determined 
            necessary by the Board to provide accurate information to 
            the stockholders that will enable such stockholders to make 
            an informed decision as to the advisability of establishing 
            a new association.

        (D) Special stockholders' meeting

            (i) Timing of meeting

                The special stockholders' meeting to consider the 
            petition shall be held within 60 days after the filing of 
            the petition.
            (ii) Approval

                If, at the special stockholders' meeting, a majority of 
            the stockholders of the current association who would be 
            served by the new association approve, by voting in person 
            or by proxy, the establishment of the separate association, 
            the Farm Credit Administration shall, within 30 days of such 
            vote, issue a charter to the new association and amend the 
            charter of the current association to reflect the territory 
            to be served by the new association.

(Pub. L. 92-181, title VII, Sec. 7.9, as added Pub. L. 100-233, title 
IV, Sec. 416, Jan. 6, 1988, 101 Stat. 1648; amended Pub. L. 100-399, 
title IV, Sec. 408(n), (o), Aug. 17, 1988, 102 Stat. 1002.)


                               Amendments

    1988--Subsec. (a)(1). Pub. L. 100-399, Sec. 408(n)(1), substituted 
``this chapter'' for ``section 2252(a)(2) of this title''.
    Subsec. (a)(4). Pub. L. 100-399, Sec. 408(n)(5), redesignated par. 
(5) as (4).
    Pub. L. 100-399, Sec. 408(n)(2), inserted reference to section 
2279f-1 of this title.
    Subsec. (a)(5). Pub. L. 100-399, Sec. 408(n)(5), redesignated par. 
(6) as (5). Former par. (5) redesignated (4).
    Pub. L. 100-399, Sec. 408(n)(3), substituted ``or'' for ``and''.
    Subsec. (a)(6). Pub. L. 100-399, Sec. 408(n)(5), redesignated par. 
(7) as (6). Former par. (6) redesignated (5).
    Pub. L. 100-399, Sec. 408(n)(4), substituted ``section 2279f'' for 
``section 2279f-1''.
    Subsec. (a)(7). Pub. L. 100-399, Sec. 408(n)(5), redesignated par. 
(7) as (6).
    Subsec. (b)(2). Pub. L. 100-399, Sec. 408(o), struck out comma 
before ``shall not take effect'' and substituted ``such banks or'' for 
``such''.


                    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.
