Disclosure and review requirements for sales of other equities.

CFR · 2024-01-01 · US · Title 12

(a) A bank, association, or service corporation must submit a proposed disclosure statement to the Farm Credit Administration (FCA) for review and clearance prior to the proposed sale of any other equities, which for this subpart means equities not purchased as a condition for obtaining a loan. (b) An institution may not offer to sell other equities until a disclosure statement is reviewed and cleared by the FCA. (c) A disclosure statement must include: (1) All of the information required by parts 620 and 628 of this chapter in the annual report to shareholders as of a date within 135 days of the proposed sale. An institution may satisfy this requirement by referring to its most recent annual report to shareholders and the most recent quarterly report filed with the FCA, provided such reports contain the required information; (2) The information required by § 615.5250(a)(3) and (4); and (3) A discussion of the intended use of the sale proceeds. (d) An institution is not required to provide the materials identified in paragraphs (c)(1) and (2) of this section to a purchaser who previously received them unless the purchaser requests it. (e) For any class of stock where each purchaser and each subsequent transferee acquires at least $250,000 of the stock and meets the definition of “accredited investor” or “qualified institutional buyer” contained in 17 CFR 230.501 and 230.144A, a disclosure statement submitted pursuant to this section is deemed reviewed and cleared by the FCA a

official document · source cfr-2024 · id 12:§ 615.5255