§ 615.5290. Retirement of capital stock and participation certificates in event of restructuring.
202 words·~1 min read·
/us/cfr/t12/s§ 615.5290·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)If a Farm Credit Bank or agricultural credit bank forgives and writes off, under § 617.7415 of this chapter, any of the principal outstanding on a loan made to any borrower, where appropriate the Federal land bank association of which the borrower is a member and stockholder shall cancel the same dollar amount of borrower stock held by the borrower in respect of the loan, up to the total amount of such stock, and to the extent provided for in the bylaws of the Bank relating to its capitalization, the Farm Credit Bank or agricultural credit bank shall retire an equal amount of stock owned by the Federal land bank association.
(b)If an association forgives and writes off, under § 617.7415 of this chapter, any of the principal outstanding on a loan made to any borrower, the association shall cancel the same dollar amount of borrower stock held by the borrower in respect of the loan, up to the total amount of such loan.
(c)Notwithstanding paragraphs
(a)and
(b)of this section, the borrower shall be entitled to retain at least one share of stock to maintain the borrower's membership and voting interest. [81 FR 49777, July 28, 2016]