12 USC 2279f - Merger of similar banks

U.S Code last checked for updates: May 06, 2024

§ 2279f.

Merger of similar banks

(a)

In general

Banks organized or operating under this chapter may merge with banks in other districts operating under the same subchapter if the plan of merger is approved by—

(1)

the Farm Credit Administration Board;

(2)

the respective Boards of Directors of the banks involved;

(3)

a majority vote of the stockholders of each bank voting, in person or by proxy, at a duly authorized stockholders’ meeting, with each association having a number of votes equal to the number of such association’s voting stockholders; and

(4)

in the case of a bank for cooperatives, a majority of the total equity interests in such merging bank for cooperatives (including allocated, but not unallocated, surplus and reserves) held by those stockholders or subscribers to the guaranty fund of the bank voting.

(b)

Powers and capitalization

(c)

Board of directors

(1)

In general

(2)

Composition

The board shall be composed of—

(A)

two directors elected by each of the bank boards, with at least one such director from each bank being elected by the eligible stockholders of, or subscribers to, the guaranty fund of the merging banks; and

(B)

one outside director elected by the directors elected under subparagraph (A).

(3)

Outside director

(A)

Qualifications

(B)

Failure to elect

(4)

Bylaws

(Pub. L. 92–181, title VII, § 7.12, as added Pub. L. 100–233, title IV, § 416, Jan. 6, 1988, 101 Stat. 1652; amended Pub. L. 100–399, title IV, § 408(q), (r), Aug. 17, 1988, 102 Stat. 1002, 1003.)

cite as: 12 USC 2279f