[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: 12CFR611.1260]



[Page 81-82]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 611_ORGANIZATION--Table of Contents

 

           Subpart P_Termination of System Institution Status

 

Sec. 611.1260  Payment of debts and assessments--terminating association.



    (a) General rule. If your institution is a terminating association, 

you must pay or make adequate provision for the payment of all 

outstanding debt obligations and assessments.

    (b) No OFI relationship. If the successor institution will not 

become an OFI, you must either:

    (1) Pay debts and assessments owed to your affiliated Farm Credit 

bank at termination; or

    (2) With your affiliated Farm Credit bank's concurrence, arrange to 

pay any



[[Page 82]]



obligations or assessments to the bank after termination.

    (c) Obligations to other Farm Credit institutions. You must pay or 

make adequate provision for payment of obligations to any Farm Credit 

institution (other than your affiliated bank) under any loss-sharing or 

other agreement.

    (d) FAC payments. Before termination, you must pay the estimated 

present value of future assessments and payment obligations to your 

affiliated Farm Credit bank to the extent required by subparagraphs 

(c)(5)(F) and (d)(1)(C)(v) of section 6.26 of the Act. The FAC must make 

the present value estimations, subject to our approval, based on an 

appropriate discount rate. The appropriate discount rate is the non-

interest-bearing U.S. Treasury security rate for securities with a 

maturity as near as possible to the period remaining until the 

terminating association's obligations under this paragraph would be due 

(but before the due date).