[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: 12CFR627.2735]



[Page 283]

 

                       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. 627.2735  Notice to holders of uninsured accounts and stockholders.



    (a) Upon the placing of an institution in liquidation, the receiver 

shall immediately notify every borrower who has an uninsured account 

(voluntary or involuntary) as described in Sec. 614.4513 of this 

chapter that the funds ceased earning interest when the receivership was 

instituted and will be applied against the outstanding indebtedness of 

any loans of such borrower unless, within 15 days of such notice, the 

borrower directs the receiver to otherwise apply such funds in the 

manner provided for in existing loan documents.

    (b) As soon as practicable after the receiver takes possession of 

the institution, the receiver shall notify, by first class mail, each 

holder of stock and participation certificates of the following matters:

    (1) The number of shares such holder owns;

    (2) That the stock and other equities of the institution may not be 

retired or transferred until the liquidation is completed, whereupon the 

receiver will distribute a liquidating dividend, if any, to the owners 

of such equities; and

    (3) Such other matters as the receiver or the Farm Credit 

Administration deems necessary.