Territorial adjustments.

CFR · 2024-01-01 · US · Title 12

This section applies to any request submitted to the FCA to modify association charters for the purpose of transferring territory from one association to another. (a) Territorial adjustments, except as specified in paragraph (m) of this section, require approval of a majority of the voting stockholders of each association present and voting or voting by written proxy at a duly authorized meeting at which a quorum is present. (b) When two or more associations agree to transfer territory, each association must submit a proposal to the funding bank containing the following: (1) A statement of the reasons for the proposed transfer and the impact the transfer will have on its stockholders and holders of participation certificates; (2) A certified copy of the resolution of the board of directors of each association approving the proposed territory transfer; (3) A copy of the agreement to transfer territory that contains the following information: (i) A description of the territory to be transferred; (ii) Transferor association's plan to transfer loans and the types of loans to be transferred; (iii) Transferor association's plan to retire and transferee association's plan to issue equities held by holders of stock, participation certificates, and allocated equities, if any, and a statement by each association that the book value of its equities is at least equal to par; (iv) An inventory of the assets to be sold by the transferor association and purchased by the transferee associati

official document · source cfr-2024 · id 12:§ 611.1124