Page:United States Statutes at Large Volume 101 Part 3.djvu/343

 PUBLIC LAW 100-233—JAN. 6, 1988

101 STAT. 1641

each such bank, and the Central Bank for Cooperatives (if approved by a numerical majority of its stockholders), shall be merged into a single bank, which shall be referred to as the "United Bank for Cooperatives". (B) SERVICES PROVIDED.—The United Bank for Cooperatives shall offer credit and related services only in the territory included, as of the date of the enactment of this section, within the boundaries of the districts that had been served by the constituent banks of the United Bank for Cooperatives, and to any borrower otherwise eligible under section 3.7(b).

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(6) NONCONSENTING BANKS.— (A) IN GENERAL.— (i) NATIONAL BANK FOR COOPERATIVES.—Any of

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district banks whose stockholders did not approve the plan of merger may offer credit and related services to any eligible borrowers within any territory or area that may be served by the National Bank. t (ii) UNITED BANK FOR COOPERATIVES.—Any of the district banks whose stockholders did not approve the plan of merger, shall continue as district banks for cooperatives and shall continue to serve only the territory within the boundaries of the district that such banks served as of the date of the enactment of this section. (B) NONDISCRIMINATION.—Any district bank whose stockholders did not approve the plan of merger, shall be entitled to the availability, from the National Bank for Cooperatives r.^^, or the United Bank for Cooperatives, as the case may be, of the same credit and related services now provided by the Central Bank for Cooperatives as of the date of the enactment of this section, regardless of the decision not to merge. (C) SUBSEQUENT MERGERS.—Any district bank referred to in subparagraph (A) may subsequently merge with the National Bank for Cooperatives or the United Bank for Cooperatives, as the case may be, on the approval of the voting stockholders of both banks proposing to merge based on the voting requirement of subsection (a). (c) REFERENCES.—References in this section to voting stockholders shall include subscribers to the guaranty fund. SEC. 414. BANK FOR COOPERATIVES BOARD OF DIRECTORS.

(a) INITIAL BOARD.—The initial board of each district bank for cooperatives shall be composed of the members of the district board (which is dissolved upon the creation of the district Farm Credit Bank) elected by the stockholders of the bank for cooperatives and one member elected by the other two members, which member shall not be a director, officer, employee, or stockholder of a System institution. The initial board shall operate for such term as is agreed to by the members of the board, except that such period shall not exceed two years. Thereafter, the board shall be elected and serve in accordance with section 3.0 of the Farm Credit Act of 1971. (b) PERMANENT BOARD.—Section 3.0 of the Act shall be amended— (1) by inserting "(a)" after the section designation; and (2) by adding at the end thereof the following new subsection: "(b) Each bank for cooperatives shall elect from its voting stockholders a board of directors of such number, for guch term, in such

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12 USC 2121

12 USC 2121.

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