Advance notices—commencement resolution and notice to equity holders.

CFR · 2024-01-01 · US · Title 12

(a) (b) (1) Send us copies of all contracts and agreements related to the termination. (2) Subject to paragraph (b)(2)(ii) of this section: (i) Send an advance notice to all equity holders stating you are taking steps to terminate System status. Immediately upon mailing the notice to equity holders, you must also place it in a prominent location on your Web site. The advance notice must describe the following: (A) The process of termination; (B) The expected effect of termination on borrowers and other equity holders, including the effect on borrower rights and the consequences of any stock retirements before termination; (C) The type of charter the successor institution will have; and (D) Any bylaw creating a special class of borrower stock and participation certificates under paragraph (f) of this section. (ii) Send us a draft of the advance notice by facsimile or electronic mail before mailing it to your equity holders. If we have not contacted you within 2 business days of our receipt of the draft notice regarding modifications, you may mail the notice to your equity holders. (c) (d) (1) For each loan applicant who is not a current stockholder, describe at the time of loan application: (i) The effect of the proposed termination on the prospective loan; and (ii) Whether, after the proposed termination, the borrower will continue to have any of the borrower rights provided under the Act and regulations. (2) For any equity holders who ask to have their equities retired, expl

official document · source cfr-2024 · id 12:§ 611.1210