12 USC 2162 - Protection of borrower stock

U.S Code last checked for updates: Nov 22, 2024

§ 2162.

Protection of borrower stock

(a)

Retirement of stock

(b)

Certain powers not affected

This section does not affect the authority of any institution of the Farm Credit System—

(1)

to retire or cancel borrower stock at par value for application against a loan in default;

(2)

to cancel borrower stock at par value under section 2202b of this title; or

(3)

to apply, against any outstanding indebtedness to a System association arising out of or in connection with a liquidation referred to in subsection (d)(2), the par value of borrower stock frozen in such liquidation.

(c)

Inability to retire stock at par value

(1)

In general

(2)

Funding

(d)

Definitions

For purposes of this section:

(1)

Borrower stock

(2)

Eligible borrower stock

The term “eligible borrower stock” means borrower stock that—

(A)

is outstanding on January 6, 1988;

(B)

is issued or allocated after January 6, 1988, but prior to the earlier of—

(i)

in the case of each bank and association, the date of approval, by the stockholders of such bank or association, of the capitalization requirements of the institution in accordance with section 2154a of this title; or

(ii)

the date that is 9 months after January 6, 1988;

(C)

was, after January 1, 1983, but before January 6, 1988, frozen by an institution that was placed in liquidation; or

(D)

was retired at less than par value by an institution that was placed in liquidation after January 1, 1983, but before January 6, 1988.

(3)

Institution

(4)

Par value

The term “par value” means—

(A)

in the case of stock, par value;

(B)

in the case of participation certificates and other equities and interests not described in subparagraph (C), face or equivalent value; or

(C)

in the case of participation certificates and allocated equities subject to retirement under a revolving cycle but that a System institution elects to retire out of order for application against a loan in default or otherwise as provided in this chapter, par or face value discounted, at a rate determined by the institution, to reflect the present value of the equity or interest as of the date of such retirement.

(Pub. L. 92–181, title IV, § 4.9A, as added Pub. L. 100–233, title I, § 101, Jan. 6, 1988, 101 Stat. 1572; amended Pub. L. 100–399, title I, § 101(b)–(d), Aug. 17, 1988, 102 Stat. 989; Pub. L. 115–334, title V, § 5411(20), Dec. 20, 2018, 132 Stat. 4681.)

cite as: 12 USC 2162