51A-4-27. Investments in agricultural credit corporations and livestock loan companies.
170 words·~1 min read·
/sd/title-51/chapter-51-4/51a-4-27·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Any bank may purchase and own stock and capital notes or other evidence of debt issued by:
(1)An agricultural credit corporation or livestock loan company, or its affiliate, the principal business of which corporation is the extension of short and intermediate term credit to farmers and ranchers, including partnerships and corporations legally engaged in farming as defined in subdivision 47-9A-2(4) in accordance with the provisions of chapter 47-9A ; and
(2)Exempt corporations as provided in §§ 47-9A-10 and 47-9A-11 .
Unless a bank owns at least eighty percent of the stock of the agricultural credit corporation or livestock loan company, it may not obligate more than twenty percent of its capital stock and surplus for those purposes. Under no circumstances may a bank obligate more than twenty percent of its capital stock and surplus and undivided profits for that purpose. Any agricultural credit corporation or livestock loan company, or its affiliate, has the same privileges as a state chartered bank or trust company provided in § 47-9A-4 .