Page:United States Statutes at Large Volume 101 Part 3.djvu/347

 PUBLIC LAW 100-233—JAN. 6, 1988

101 STAT. 1645

TITLE VII—MERGERS OF SYSTEM INSTITUTIONS 'Subtitle A—Merger of Banks Within a District "SEC. 7.0. POWER TO MERGE.

"Two or more banks within a district may merge into a single entity (hereinafter in this title referred to as a 'merged bank') if the plan of merger is approved by— "(1) the Farm Credit Administration Board; "(2) the respective boards of directors of the banks involved; "(3) a majority of the stockholders of each bank voting, in person or by proxy, at a duly authorized stockholders' meeting in accordance with the provisions of section 5.2(c) relating to the casting of votes by stockholders; and "(4) in the case of a bank for cooperatives, a majority of the total equity interests in such merging bank for cooperatives (including allocated, but not unallocated, surplus and reserves) held by those stockholders or subscribers to the guaranty fund of the bank voting. "SEC. 7.1. BOARD OF DIRECTORS FOR THE DISTRICT.

12 USC 2279a.

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12 USC 2279a-l.

"(a) COMPOSITION.—

"(1) IN GENERAL.—Following a merger pursuant to section 7.1, the district Board of Directors shall continue to be composed of seven members as provided in section 5.1. "(2) REGULATIONS.—The Farm Credit Administration shall issue regulations to ensure the fair and equitable representation of the associations of each of the merging banks on the initial Board of Directors of the merged bank. "(b) ELECTION.—Following a merger pursuant to section 7.8, the members of the district board shall be elected pursuant to regula?:'"l'mj-: tions issued by the Farm Credit Administration prescribing procedures that are as consistent as practicable with those set forth in section 5.2. 12 USC 2279a-2. "SEC. 7 2 POWERS OF MERGED BANKS. .. "(a) IN GENERAL.—Except as otherwise provided in this title, a merged bank shall have all of the powers granted to, and shall be subject to all of the obligations imposed on, any of the constituent entities of the merged bank. "(b) REGULATIONS.—The Farm Credit Administration shall issue regulations that establish the manner in which the powers and obligations of the banks that form the merged bank are consolidated, and to the extent necessary, reconciled in the merged bank. "SEC. 7.3. CAPITAL STOCK. "(a) PLAN OF MERGER.—Subject to subsection (c), the number of

shares of capital stock issued by a merged bank to stockholders and other owners of any institution involved in the merger, and the rights and privileges of such shares (including voting power, redemption rights, preferences on liquidation, and the right to dividends) shall be determined by the plan of merger adopted by the

12 USC 2279a-3.

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