Page:United States Statutes at Large Volume 101 Part 3.djvu/344

 101 STAT. 1642

PUBLIC LAW 100-233—JAN. 6, 1988

manner, and with such qualifications as may be required in its bylaws, except that, at least one member shall be elected by the other directors, which member shall not be a director, officer, employee, or stockholder of a System institution.". SEC. 415. ORGANIZATION AND OPERATION OF THE MERGED BANK FOR COOPERATIVES. Title III (12 U.S.C. 2121 et seq.) is amended— (1) by inserting after the title designation the following: "PART A—BANKS FOR COOPERATIVES"; and

(2) by adding at the end thereof the following new part: "PART B—UNITED AND NATIONAL BANKS FOR COOPERATIVES 12 USC 2141.

"SEC. 3.20. CHARTER, POWERS, AND OPERATION.

"(a) CHARTER.—The National Bank for Cooperatives or the United Bank for Cooperatives, as the case may be (hereinafter in this part referred to in this section as the 'consolidated bank') shall be a federally chartered instrumentality of the United States and an institution of the Farm Credit System. "(b) POWERS.—The consolidated bank and the board of directors of such bank shall have all of the powers, rights, responsibilities, and obligations of the district banks for cooperatives and the Central Bank for Cooperatives and the boards of directors of such banks, as otherwise provided for in this Act. "(c) OPERATION.—The consolidated bank shall be organized and operated on a cooperative basis. 12 USC 2142.

"SEC. 3.21. BOARD OF DIRECTORS PROVISIONS.

"(a) INITIAL BOARD OF DIRECTORS.—The initial board of directors of a consolidated bank shall include the members of the boards of directors of the farm credit districts who were elected by voting stockholders of the constituent district banks for cooperatives (as such banks existed on the date of the enactment of this section) and who shall serve out the terms for which they were elected. "(b) PERMANENT BOARD OF DIRECTORS.—



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"(1) COMPOSITION.—The permanent board of directors of a consolidated bank shall consist of— "(A) three members, elected by the voting stockholders of the consolidated bank, from each of the farm credit districts that had been served by constituent banks, as such districts existed on the date of the enactment of this section, at least one of whom, from each such district, shall be a farmer; "(B) one member elected by the voting stockholders of each district bank for cooperatives that is not a constituent of the consolidated bank; and "(C) one member appointed by the members chosen under subparagraphs (A) and (B) who shall not be a stockholder or borrower of a System institution or an officer or director of any such stockholder or borrower. "(2) NOMINATION AND ELECTION.—For purposes of nominating and electing members of the board of directors under paragraph dXA):

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