12 USC § 2202b - Effect of restructuring on borrower stock

---
identifier: "/us/usc/t12/s2202b"
source: "usc"
legal_status: "official_prima_facie"
title: "12 USC § 2202b - Effect of restructuring on borrower stock"
title_number: 12
title_name: "BANKS AND BANKING"
section_number: "2202b"
section_name: "Effect of restructuring on borrower stock"
chapter_number: 23
chapter_name: "FARM CREDIT SYSTEM"
subchapter_number: "IV"
subchapter_name: "PROVISIONS APPLICABLE TO TWO OR MORE CLASSES OF INSTITUTIONS OF THE SYSTEM"
part_number: "C"
part_name: "Rights of Borrowers; Loan Restructuring"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 92–181, title IV, § 4.14B, as added Pub. L. 100–233, title I, § 102(a), Jan. 6, 1988, 101 Stat. 1577; amended Pub. L. 100–399, title I, § 102(g), Aug. 17, 1988, 102 Stat. 990.)"
---


# § 2202b. Effect of restructuring on borrower stock

**(a)** **Farm Credit Bank** section 2202a of this title

If a Farm Credit Bank forgives and writes off, under , any of the principal outstanding on a loan made to any borrower, the Federal land bank association of which the borrower is a member and stockholder shall cancel the same dollar amount of borrower stock held by the borrower in respect of the loan, up to the total amount of such stock, and, to the extent provided for in the bylaws of the bank relating to its capitalization, the bank shall retire an equal amount of stock owned by the Federal land bank association.

**(b)** **Production credit association** section 2202a of this title

If a production credit association forgives and writes off, under , any of the principal outstanding on a loan made to any borrower, the association shall cancel the same dollar amount of borrower stock held by the borrower in respect of the loan, up to the total amount of such stock.

**(c)** **Retention of stock** Notwithstanding subsections (a) and (b), the borrower shall be entitled to retain at least one share of stock to maintain the borrower’s membership and voting interest in the association.

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**Source Credit**: (Pub. L. 92–181, title IV, § 4.14B, as added Pub. L. 100–233, title I, § 102(a), Jan. 6, 1988, 101 Stat. 1577; amended Pub. L. 100–399, title I, § 102(g), Aug. 17, 1988, 102 Stat. 990.)

## Editorial Notes

### Amendments

1988—Subsec. (a).  substituted in subsec. heading “Farm Credit Bank” for “Federal land bank” and in text “a Farm Credit Bank” for “a Federal land bank” and “, to the extent provided for in the bylaws of the bank relating to capitalization, the bank shall” for “the Federal land bank shall”.

## Statutory Notes and Related Subsidiaries

### Effective Date of 1988 Amendment

Amendment by  effective immediately after amendment made by , which was effective 6 months after , see , set out as a note under .