[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: 12CFR611.1125]



[Page 68-69]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 611_ORGANIZATION--Table of Contents

 

      Subpart G_Mergers, Consolidations, and Charter Amendments of 

                              Associations

 

Sec. 611.1125  Treatment of associations not approving districtwide 

mergers.



    (a) Issuance of charters. When issuing charters or certificates of 

territory for districtwide mergers or consolidations



[[Page 69]]



of associations, the Farm Credit Administration will not issue any 

charters or certificates of territory that include the territory of one 

or more associations whose stockholders voted to disapprove the merger 

or consolidation.

    (b) A district bank shall not take any of the following actions with 

respect to an association that has determined to not participate in a 

districtwide merger or consolidation:

    (1) Discriminate in the provision of any financial service and 

assistance, including, but not limited to, access to loan funds and 

rates of interest on loans and discounts offered by the district bank to 

associations and their member/borrowers;

    (2) Discriminate in the provision of any related services that are 

offered by the district bank to associations and their member/borrowers;

    (3) Discriminate in the provision of any professional assistance 

that may be normally provided by the district bank to associations; or

    (4) Discriminate in the provision of any technical assistance that 

may be normally provided by the district bank to associations.

    (c) This regulation does not prohibit a district bank from taking 

any action with respect to an association, including, but not limited 

to, charging different rates of interest or different prices for 

services, or declining to provide financial assistance; provided that 

any such action is fully documented and based on an objective analysis 

of applicable criteria that are uniformly and consistently applied by 

the district bank to all associations in the district.



[51 FR 32443, Sept. 12, 1986, as amended at 60 FR 34099, June 30, 1995]