Statute: AGRICULTURAL CREDIT ACT OF 1987
Title: Title IV Restructuring the Farm Credit System
Subtitle: Subtitle B Merger of System Institutions
U.S. Code Citation: 12 U.S.C. 2071 note
12 U.S.C. 2071 note SEC. 411. MERGER OF PRODUCTION CREDIT ASSOCIATIONS AND FEDERAL LAND BANK ASSOCIATIONS.
(a) SUBMISSION OF PROPOSAL. Not later than 6 months after the date of the merger of the Federal land bank and the Federal intermediate credit bank in a district, the Boards of Directors of each Federal land bank association and each production credit association in such district, that share substantially the same geographical territory with each other, shall submit to the voting stockholders of each such association for their approval, a plan approved by the supervising bank and the Farm Credit Administration, for merging such associations.
(b) PREREQUISITES TO MERGER.
(1) STOCKHOLDER VOTE. The stockholder vote required for approval of a merger under subsection (a) shall be a majority of the voting stockholders of each association voting, in person or by written proxy, at a duly authorized stockholders meeting.
(2) SUBMISSION TO FCA. Not later than 60 days prior to the end of the 12-month period beginning on the date of the enactment of this section, the plan of merger under subsection (a), together with all information to be presented to the stockholders, shall be submitted to the Farm Credit Administration.
(3) EXPEDITED CONSIDERATION BY FCA. The Farm Credit Administration shall expedite its consideration of the plan and accompanying information submitted under paragraph (2) so that review and approval of such plan and information shall be completed by the Administration so as to enable a stockholder vote to occur within the 12-month period referred to in paragraph (2).
(c) DIRECT LENDERS. On approval of a merger under this subsection, the resulting association shall be a direct lender in the same manner as applies to production credit associations.
[FCA Home | FCA Handbook]