2016 US Code
Title 12 - Banks and Banking
Chapter 23 - Farm Credit System
Subchapter III - Banks for Cooperatives
Part B - United and National Banks for Cooperatives
Sec. 2142 - Board of directors provisions

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Citation 12 U.S.C. § 2142 (2016)
Section Name §2142. Board of directors provisions
Section Text (a) Initial board of directors

The initial board of directors of a consolidated bank shall include the members of the boards of directors of the farm credit districts who were elected by voting stockholders of the constituent district banks for cooperatives (as such banks existed on January 6, 1988) and who shall serve out the terms for which they were elected.

(b) Permanent board of directors (1) Composition

The permanent board of directors of a consolidated bank shall consist of—

(A) three members, elected by the voting stockholders of the consolidated bank, from each of the farm credit districts that had been served by constituent banks, as such districts existed on January 6, 1988, at least one of whom, from each such district, shall be a farmer;

(B) one member elected by the voting stockholders of each district bank for cooperatives that is not a constituent of the consolidated bank; and

(C) one member appointed by the members chosen under subparagraphs (A) and (B) who shall not be a stockholder or borrower of a System institution or an officer or director of any such stockholder or borrower.

(2) Nomination and election

For purposes of nominating and electing members of the board of directors under paragraph (1)(A):

(A) First member

The nomination and election of the first member from each district shall be carried out on the basis provided for in section 2124(d) of this title.

(B) Second member (i) In general

The nomination and election of the second member from each district shall be carried out with each voting stockholder of the consolidated bank located in the district having one vote, plus a number of votes (or fractional part thereof) equal to the number of stockholders eligible to vote in that district multiplied by the percentage (or fractional part thereof) of the total equity interest (including allocated, but not unallocated, surplus and reserves) in the consolidated bank of all such stockholders located in that district held by the individual voting stockholder—

(I) at the close of the immediately preceding fiscal year of the consolidated bank; or

(II) with respect to the first election held under this subsection, as of such date as the Farm Credit Administration shall prescribe.

(ii) Total number of votes

The total number of votes for each district under this subparagraph shall be the number of voting stockholders of the consolidated bank located in the district multiplied by two.

(C) Third member

The nomination and election of the third member from each district shall be carried out in accordance with procedures prescribed in the bylaws of the consolidated bank.

(3) Terms (A) In general

The members of the board of directors of the consolidated bank shall serve for a term of 3 years.

(B) Timing of elections

Procedures for electing members of the board of directors of the consolidated bank under this subsection shall ensure that the beginning of the terms of such members coincide with the expiration of the terms of members of the interim board of directors of the bank under subsection (a).

(4) FCA regulations

The nomination and election of the members of the board of directors of the consolidated bank under this subsection shall be carried out in accordance with regulations issued by the Farm Credit Administration.

(c) Modification of board of directors provisions

The provisions of subsection (b) relating to the board of directors of the consolidated bank, other than the provisions relating to the initial composition, nomination, and election of the members of the board, may be modified on an affirmative vote of at least two-thirds of the voting stockholders of the bank, with each such stockholder to have, for such purposes, only one vote. Any proposals for modifying such provisions shall be submitted for a vote by such stockholders in accordance with procedures prescribed by the Farm Credit Administration.

Source Credit

(Pub. L. 92–181, title III, §3.21, as added Pub. L. 100–233, title IV, §415(2), Jan. 6, 1988, 101 Stat. 1642; amended Pub. L. 100–399, title IV, §407(c), (d), Aug. 17, 1988, 102 Stat. 1000.)

Editorial Notes AMENDMENTS

1988—Subsec. (b)(2)(B)(i)(I). Pub. L. 100–399, §407(d), amended subcl. (I) generally. Prior to amendment, subcl. (I) read as follows: "as of the final date of the fiscal year of the consolidated bank; or".

Subsec. (b)(2)(C). Pub. L. 100–399, §407(c), added subpar. (C).

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100–399 effective as if enacted immediately after enactment of Pub. L. 100–233, which was approved Jan. 6, 1988, see section 1001(a) of Pub. L. 100–399, set out as a note under section 2002 of this title.

Publication Title United States Code, 2012 Edition, Supplement 4, Title 12 - BANKS AND BANKING
Category Bills and Statutes
Collection United States Code
SuDoc Class Number Y 1.2/5:
Contained Within Title 12 - BANKS AND BANKING
CHAPTER 23 - FARM CREDIT SYSTEM
SUBCHAPTER III - BANKS FOR COOPERATIVES
Part B - United and National Banks for Cooperatives
Sec. 2142 - Board of directors provisions
Contains section 2142
Date 2016
Laws In Effect As Of Date January 6, 2017
Positive Law No
Disposition standard
Statutes at Large References 101 Stat. 1642
102 Stat. 1000
Public Law References Public Law 92-181, Public Law 100-233, Public Law 100-399
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