Page:United States Statutes at Large Volume 101 Part 3.djvu/352

 101 STAT. 1650

PUBLIC LAW 100-233—JAN. 6, 1988 "(ii) the stock, participation certificates, and other similar equities of the current association held by members of the new association will be retired at book value and the proceeds of such will be transferred to the new association, and an equivalent amount of stock, participation certificates, and other similar equities will be issued to the members by the new association; and "(iii) the other assets of the current association will be distributed equitably among the current association and any resulting new association.

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"(3) NOTIFICATION.—

"(A) IN GENERAL.—Not later than 30 days after the filing of the petition for organization, the current association shall notify its stockholders that a petition to establish the separate association has been filed. "(B) CONTENTS.—The notification required under this paragraph shall contain— "(i) the date of a special stockholders' meeting to consider the petition for organization; and "(ii) an enumerated statement of the gmticipated benefits and the potential disadvantages to such stockholders if the new association is established. "(C) FCA APPROVAL.—

"(i) IN GENERAL.—All notifications under this paragraph shall be submitted to the Farm Credit Administration Board for approval prior to being distributed to the stockholders. "(ii) AMENDING NOTIFICATION.—The Farm Credit Administration Board shall require that, prior to the distribution of the notification to the stockholders, the notification be amended as determined necessary by the Board to provide accurate information to the stockholders that will enable such stockholders to make an informed decision as to the advisability of establishing a new association. "(D) SPECIAL STOCKHOLDERS' MEETING.— "(i) TIMING OF MEETING.—The special stockholders'

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' 12 USC 2279d.

meeting to consider the petition shall be held within 60 days after the filing of the petition. "(ii) APPROVAL.—If, at the special stockholders' meeting, a majority of the stockholders of the current association who would be served by the new association approve, by voting in person or by proxy, the establishment of the separate association, the Farm Credit Administration shall, within 30 days of such vote, issue a charter to the new association and amend the charter of the current association to reflect the territory to be served by the new association.

"Chapters—Termination and Dissolution of Institutions

"SEC. 7.10. TERMINATION OF SYSTEM INSTITUTION STATUS.

"(a) CONDITIONS.—A System institution may terminate the status of the institution as a System institution if—

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