§ 2130. Ownership of stock by borrowers
461 words·~2 min read·
/usc/title-12/section-2130A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Each borrower entitled to hold voting stock shall, at the time a loan is made by a bank for cooperatives, own at least one share of voting stock and shall be required by the bank to invest in additional voting stock or nonvoting investment stock at that time, or from time to time, as the lending bank may determine, but the requirement for investment in stock at the time the loan is closed shall not exceed an amount equal to 10 per centum of the face amount of the loan. Such additional ownership requirements may be based on the face amount of the loan, the outstanding loan balance or on a percentage of the interest payable by the borrower during any year or during any quarter thereof, or upon such other basis as the bank determines will provide adequate capital for the operation of the bank and equitable ownership thereof among borrowers.
(b)Notwithstanding the provisions of subsection
(a)of this section, the purchase of stock need not be required with respect to that part of any loan made by a bank for cooperatives which it sells to or makes in participation with financial institutions other than any of the banks for cooperatives. In such cases the distribution of earnings of the bank for cooperatives shall be on the basis of the interest in the loan retained by such bank.
(Pub. L. 92–181 title III, § 3.9, Dec. 10, 1971, 85 Stat. 605; Pub. L. 96–592, title III, § 306, Dec. 24, 1980, 94 Stat. 3445; Pub. L. 100–233, title VIII, § 802(q), Jan. 6, 1988, 101 Stat. 1712; Pub. L. 115–334, title V, § 5411(9), Dec. 20, 2018, 132 Stat. 4680.)
Connections12 cite this · traces to 1
Cited by 12 sections
public-private-law
U.S. Code
statute-compilations
statutes-at-large
- Public Law 96–592To amend the Farm Credit Act of 1971 to permit Farm Credit System institutions to improve their services to borrowers, and for other purposes
- Public Law 115–334To provide for the reform and continuation of agricultural and other programs of the Department of Agriculture through fiscal year 2023, and for other purposes
- Public Law 100–233To provide credit assistance to farmers, to strengthen the Farm Credit System, to facilitate the establishment of secondary markets for agricultural loans, and for other purposes
Traces to 1 document
public-private-law
9 references not yet in our index
- Pub. L. 92–181
- 85 Stat. 605
- Pub. L. 96–592, title III, § 306
- 94 Stat. 3445
- Pub. L. 100–233, title VIII, § 802(q)
- 101 Stat. 1712
- 132 Stat. 4680
- Pub. L. 100–233
- Pub. L. 96–592
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§ 2130
Ownership of stock by borrowers
Bills×5
Stat.×3
Stat. Comp.×2
Pub. L.×1
U.S.C.×1
Pub. L.Pub. L. 92–181
Stat.85 Stat. 605
Pub. L.Pub. L. 96–592, title III, § 306
Stat.94 Stat. 3445
Pub. L.Pub. L. 100–233, title VIII, § 802(q)
Cites 10 · showing 6Cited by 12 across 5 sources