Retirement of eligible borrower stock.

CFR · 2024-01-01 · US · Title 12

(a) (1) (i) Stock, participation certificates or allocated equities outstanding on January 6, 1988, or purchased as a condition of obtaining a loan prior to the earlier of the date of shareholder approval of capitalization bylaws under section 4.3A of the Act or October 6, 1988; and (ii) Any stock, participation certificates or allocated equities for which such eligible borrower stock is exchanged in connection with a merger, consolidation, or other reorganization or a transfer of territory. (2) (i) Retirement upon repayment of a loan or under a retirement or revolvement plan in effect prior to (ii) Retirement pursuant to §§ 615.5280 and 615.5290. (3) (i) In the case of stock, par value; (ii) In the case of participation certificates and other equities, face or equivalent value; or (iii) In the case of participation certificates and allocated surplus subject to retirement under a revolving cycle and retired out or order pursuant to §§ 615.5280 and 615.5290 or otherwise under the Act, par or face value discounted at a rate determined by the institution to reflect the present value of the equity as of the date of such retirement. (b) When an institution retires eligible borrower stock in the ordinary course of business, such equities shall be retired at par, even if book value is less than par. (c) When a Farm Credit Bank retires stock for the sole purpose of enabling an association to retire eligible borrower stock that was issued in connection with a long term real estate loa

official document · source cfr-2024 · id 12:§ 615.5260