12 CFR 615.5260 - Retirement of eligible borrower stock.

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§ 615.5260 Retirement of eligible borrower stock.

(a)Definitions. For the purposes of this subpart the following definitions shall apply:

(1)Eligible borrowers stock means:

(i) Stock, participation certificates or allocated equities outstanding on January 6, 1988, or purchased as a condition of obtaining a loan prior to the earlier of the date of shareholder approval of capitalization bylaws under section 4.3A of the Act or October 6, 1988; and

(ii) Any stock, participation certificates or allocated equities for which such eligible borrower stock is exchanged in connection with a merger, consolidation, or other reorganization or a transfer of territory. Eligible borrower stock does not include equities for which eligible borrower stock is required to be exchanged pursuant to the bylaws adopted under section 4.3A or equities for which eligible borrower stock is voluntarily exchanged except in connection with a merger, consolidation or other reorganization or a transfer of territory.

(2)Retirement in the ordinary course of business means:

(i) Retirement upon repayment of a loan or under a retirement or revolvement plan in effect prior to January 6, 1988, and for eligible borrower stock issued after that date, at the time the loan was made; or

(ii) Retirement pursuant to §§ 615.5280 and 615.5290.

(3)Par value means:

(i) In the case of stock, par value;

(ii) In the case of participation certificates and other equities, face or equivalent value; or

(iii) In the case of participation certificates and allocated surplus subject to retirement under a revolving cycle and retired out or order pursuant to §§ 615.5280 and 615.5290 or otherwise under the Act, par or face value discounted at a rate determined by the institution to reflect the present value of the equity as of the date of such retirement.

(b) When an institution retires eligible borrower stock in the ordinary course of business, such equities shall be retired at par, even if book value is less than par.

(c) When a Farm Credit Bank retires stock for the sole purpose of enabling an association to retire eligible borrower stock that was issued in connection with a long term real estate loan, such stock shall be retired at par even if its book value is less than par.

[ 53 FR 40048, Oct. 13, 1988; 54 FR 7029, Feb. 16, 1989, as amended at 62 FR 4447, Jan. 30, 1997; 63 FR 39228, July 22, 1998]

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.

United States Code
U.S. Code: Title 12 - BANKS AND BANKING

§ 2013 - General corporate powers

§ 2015 - Lending authority

§ 2018 - Security; terms

§ 2019 - Purposes for extensions of credit

§ 2020 - Related services

§ 2073 - General corporate powers

§ 2074 - Production credit association capitalization

§ 2075 - Short- and intermediate-term loans; participation; other financial assistance; terms; conditions; interest; security

§ 2076 - Other services

§ 2093 - General corporate powers

§ 2122 - Corporate existence; general corporate powers

§ 2128 - Loans, commitments, and technical and financial assistance

§ 2132 - Earnings and reserves; application of savings

§ 2146 - Capitalization

§ 2154 - Capital adequacy of banks and institutions

§ 2154a - Capitalization of System institutions

§ 2160 - Federal Farm Credit Banks Funding Corporation

§ 2202b - Effect of restructuring on borrower stock

§ 2211 - Establishment

§ 2243 - Powers of Board

§ 2244 - Chairman; responsibilities; governing standards

§ 2252 - Powers and duties

§ 2278b - Establishment of Corporation

§ 2278b-6 - Debt obligations

§ 2279aa - Definitions

12 U.S. Code § 2279aa–3 - Powers and duties of Corporation and Board

12 U.S. Code § 2279aa–4 - Stock issuance

§ 2279aa-6 - Guarantee of qualified loans

12 U.S. Code § 2279aa–7 - Repealed. Pub. L. 104–105, title I, § 108(b), Feb. 10, 1996, 110 Stat. 164

12 U.S. Code § 2279aa–8 - Standards for qualified loans

12 U.S. Code § 2279aa–10 - Funding for guarantee; reserves of Corporation

12 U.S. Code § 2279aa–12 - Securities in credit enhanced pools

Statutes at Large

Title 12 published on 09-Jun-2018 03:57

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 12 CFR Part 615 after this date.

  • 2018-06-12; vol. 83 # 113 - Tuesday, June 12, 2018
    1. 83 FR 27486 - Organization; Funding and Fiscal Affairs, Loan Policies and Operations, and Funding Operations; Investment Eligibility
      GPO FDSys XML | Text
      Final rule.
      This regulation shall become effective on January 1, 2019.
      12 CFR Parts 611 and 615
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