[Code of Federal Regulations]

[Title 12, Volume 6]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR627.2720]



[Page 280-281]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 627_TITLE IV CONSERVATORS, RECEIVERS, AND VOLUNTARY LIQUIDATIONS

--Table of Contents

 

                  Subpart B_Receivers and Receiverships

 

Sec. 627.2720  Appointment of receiver.





    (a) The Farm Credit Administration Board may, in its discretion, 

appoint ex parte and without notice a receiver for any Farm Credit 

institution in accordance with the grounds for appointment set forth in 

Sec. 627.2710 of this part.

    (b) The receiver appointed for a Farm Credit institution shall be 

the Insurance Corporation.

    (c) Upon the appointment of the Insurance Corporation as receiver, 

the Chairman of the Farm Credit Administration Board shall immediately 

notify the institution, and its district bank in the case of an 

association, and shall publish a notice of the appointment in the 

Federal Register.

    (d) In the case of the voluntary or involuntary liquidation of an 

association, the district bank shall institute appropriate measures to 

minimize the adverse effect of the liquidation on those borrowers whose 

loans are purchased by or otherwise transferred to another System 

institution.

    (e) Upon the issuance of the order placing a Farm Credit institution 

into liquidation and appointing the Insurance Corporation as receiver, 

all rights, privileges, and powers of the board of directors, officers, 

and employees of the institution shall be vested exclusively in the 

receiver. The Farm Credit Administration Board may simultaneously, or 

any time



[[Page 281]]



thereafter, cancel the charter of the institution.



[57 FR 46482, Oct. 9, 1992, as amended at 63 FR 5724, Feb. 4, 1998]