Page:United States Statutes at Large Volume 101 Part 3.djvu/346

 101 STAT. 1644 12 USC 2144.

PUBLIC LAW 100-233—JAN. 6, 1988

"SEC. 3.23. CONSOLIDATION OF FUNCTIONS.

"Subject to section 3.22, to the greatest extent practicable, the functions of the consolidated bank shall be consolidated in the central office of the bank. 12 USC 2145.

"SEC. 3.24. EXCHANGE OF OWNERSHIP INTERESTS.

"On the establishment of the consolidated bank, ownership interests of the stockholders and subscribers to the guaranty funds of the constituent district banks for cooperatives (including stock, participation certificates, and allocated equities) shall be exchanged for like ownership interests in the consolidated bank on a book value basis. 12 USC 2146.

"SEC. 3.25. CAPITALIZATION.

"The board of directors of the consolidated bank shall provide for the capitalization of such bank in accordance with the provisions of section 4.3A. 12 USC 2147.

"SEC. 3.26. PATRONAGE POOLS.



"Under such terms and conditions as may be determined by its board of directors, the consolidated bank may— "(1) for a period of at least 3 years following the date of the ' enactment of this section, establish separate patronage pools consisting of loans to eligible borrowers located in each constituent farm credit district (as such district existed on the date of the enactment of this section); and "(2) allocate revenues, expenses, and net savings among such pools on an equitable basis. 12 USC 2148.

"SEC. 3.27. TRANSACTIONS TO ACCOMPLISH THE MERGER

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"The receipt of assets or assumption of liabilities by the consolidated bank, the exchange of stock, equities, or other ownership interests, and any other transaction carried out in accomplishing the merger of the banks for cooperatives shall not be treated as a taxable event under the laws of the United States or of any State or political subdivision thereof. The preceding sentence shall also apply to the receipt of assets and liabilities by a taxable institution to the extent that the net amount of the distribution is immediately reinvested in stock of a consolidated bank (and in such case the basis of such stock shall be appropriately reduced by the amount of gain not recognized by reason of this sentence). 12 USC 2149.



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"SEC. 3.28. LENDING LIMITS.

"The Farm Credit Administration may not establish lending limits for the consolidated bank with respect to any loans or borrowers that are more restrictive than the combined lending limits that were previously established by the Farm Credit Administration for a district bank for cooperatives and the Central Bank for Cooperatives with respect to such loans or borrowers.". SEC. 416. MERGER OF SYSTEM INSTITUTIONS.



The Act (12 U.S.C. 2001 et seq.) (as amended by section 201 of this Act) is further amended by adding at the end thereof the following new title:

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