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321 Subpart C—Conservators and Conservatorships

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321 Subpart C—Conservators and Conservatorships Farm Credit Administration § 627.2710 Credit Drive, McLean, VA 22102–5090, 703– Subpart C—Conservators and 883–4056, 703–883–4444 (TDD). Conservatorships [57 FR 13638, Apr. 17, 1992. Redesignated at 62 627.2770 Conservators. FR 4441, Jan. 30, 1997, as amended at 62 FR 627.2775 Appointment of a conservator. 4451, Jan. 30, 1997] 627.2780 Powers and duties of conservators. § 626.6030 Complaints. 627.2785 Inventory, examination, audit, and reports to stockholders. (a) Complaints regarding discrimina- 627.2790 Final discharge and release of the tion in lending by a Farm Credit insti- conservator. tution under the Fair Housing Act shall be referred to the Assistant Sec- Subpart D—Voluntary Liquidation retary for Fair Housing and Equal Op- 627.2795 Voluntary liquidation. portunity, United States Department 627.2797 Preservation of equity. of Housing and Urban Development, Washington, DC 20410, and to the Office AUTHORITY: Secs. 4.2, 5.9, 5.10, 5.17, 5.51, of Congressional and Public Affairs, 5.58, 5.61 of the Farm Credit Act (12 U.S.C. 2183, 2243, 2244, 2252, 2277a, 2277a–7, 2277a–10). Farm Credit Administration, McLean, Virginia 22102–5090. SOURCE: 57 FR 46482, Oct. 9, 1992, unless (b) Complaints regarding discrimina- otherwise noted. tion in lending by a Farm Credit insti- tution under the Equal Credit Oppor- Subpart A—General tunity Act shall be referred to the Of- fice of Congressional and Public Af- § 627.2700 General—applicability. fairs, Farm Credit Administration, The provisions of this part shall McLean, Virginia 22102–5090. apply to conservatorships, receiver- [57 FR 13639, Apr. 17, 1992. Redesignated at 62 ships, and voluntary liquidations. FR 4441, Jan. 30, 1997] [63 FR 5724, Feb. 4, 1998] PART 627—TITLE IV CONSERVA- § 627.2705 Definitions. TORS, RECEIVERS, AND VOL- For purposes of this part the fol- UNTARY LIQUIDATIONS lowing definitions apply: (a) Act means the Farm Credit Act of Subpart A—General 1971, as amended. (b) Farm Credit institution(s) or institu- Sec. tion(s) means all associations, banks, 627.2700 General—applicability. 627.2705 Definitions. service corporations chartered under 627.2710 Grounds for appointment of con- title IV of the Act, the Federal Farm servators and receivers. Credit Banks Funding Corporation, and 627.2715 Action for removal of conservator the Farm Credit System Financial As- or receiver. sistance Corporation. (c) Conservator means the Farm Cred- Subpart B—Receivers and Receiverships it System Insurance Corporation act- 627.2720 Appointment of receiver. ing in its capacity as conservator. 627.2725 Powers and duties of the receiver. (d) Insurance Corporation means the 627.2726 Treatment by the conservator or re- Farm Credit System Insurance Cor- ceiver of financial assets transferred in poration. connection with a securitization or par- (e) Receiver means the Insurance Cor- ticipation. poration acting in its capacity as re- 627.2730 Preservation of equity. ceiver. 627.2735 Notice to holders of uninsured ac- counts and stockholders. [57 FR 46482, Oct. 9, 1992, as amended at 75 FR 627.2740 Creditors’ claims. 35968, June 24, 2010] 627.2745 Priority of claims—associations. 627.2750 Priority of claims—banks. § 627.2710 Grounds for appointment of 627.2752 Priority of claims—other Farm conservators and receivers. Credit institutions. 627.2755 Payment of claims. (a) Upon a determination by the 627.2760 Inventory, audit, and reports. Farm Credit Administration Board of 627.2765 Final discharge and release of the the existence of one or more of the fac- receiver. tors set forth in paragraph (b) of this 313 VerDate Sep<11>2014 14:14 Apr 02, 2021 Jkt 253041 PO 00000 Frm 00323 Fmt 8010 Sfmt 8010 Q:\12\12V7.TXT PC31 kpayne on VMOFRWIN702 with $$_JOB § 627.2715 12 CFR Ch. VI (1–1–21 Edition) section, with respect to any bank, asso- (6) The institution is unable to make ciation, or other institution of the Sys- a timely payment of principal or inter- tem, the Farm Credit Administration est on any insured obligation (as de- Board may, in its discretion, appoint a fined in section 5.51(3) of the Act) conservator or receiver for such insti- issued by the institution individually, tution. After January 5, 1993, the Insur- or on which it is primarily liable. ance Corporation shall be the sole enti- [51 FR 32443, Sept. 12, 1986, as amended at 54 ty to be appointed as conservator or re- FR 1148, Jan. 12, 1989. Redesignated and ceiver. amended at 46487, Oct. 9, 1992; 63 FR 39229, (b) The grounds for the appointment July 22, 1998; 81 FR 49779, July 28, 2016] of a conservator or receiver for a Sys- tem institution are: § 627.2715 Action for removal of con- servator or receiver. (1) The institution is insolvent, in that the assets of the institution are Upon the appointment of a conser- less than its obligations to creditors vator or receiver for a Farm Credit in- and others, including its members. For stitution by the Farm Credit Adminis- purposes of determining insolvency, tration Board pursuant to § 627.2710 of ‘‘obligations to members’’ shall not in- this part, the institution may, within clude stock or allocated equities held 30 days of such appointment, bring an by current or former borrowers. action in the United States District (2) There has been a substantial dis- Court for the judicial district in which sipation of the assets or earnings of the the home office of the institution is lo- cated, or in the United States District institution due to the violation of any Court for the District of Columbia, for law, rule, or regulation, or the conduct an order requiring the Farm Credit Ad- of an unsafe or unsound practice; ministration Board to remove such (3) The institution is in an unsafe or conservator or receiver and, if the unsound condition to transact busi- charter has been canceled, to rescind ness, including having insufficient cap- the cancellation of the charter. Not- ital or otherwise. For purposes of this withstanding any other provision of regulation, ‘‘unsafe or unsound condi- subpart B or C of this part, the institu- tion’’ shall include, but shall not be tion’s board of directors is empowered limited to, the following conditions: to meet subsequent to such appoint- (i) [Reserved] ment and authorize the filing of an ac- (ii) For associations, a default by the tion for removal. An action for removal association of one or more terms of its may be authorized only by such insti- general financing agreement with its tution’s board of directors. affiliated bank that the Farm Credit Administration determines to be a ma- Subpart B—Receivers and terial default. Receiverships (iii) For all institutions, permanent capital of less than one-half the min- § 627.2720 Appointment of receiver. imum required level for the institu- (a) The Farm Credit Administration tion. Board may, in its discretion, appoint (iv) [Reserved] ex parte and without notice a receiver (v) For associations, stock impair- for any Farm Credit institution in ac- ment. cordance with the grounds for appoint- (4) The institution has committed a ment set forth in § 627.2710 of this part. willful violation of a final cease-and- (b) The receiver appointed for a Farm desist order issued by the Farm Credit Credit institution shall be the Insur- Administration Board; or ance Corporation. (5) The institution is concealing its (c) Upon the appointment of the In- books, papers, records, or assets, or is surance Corporation as receiver, the refusing to submit its books, papers, Chairman of the Farm Credit Adminis- records, assets, or other material relat- tration Board shall immediately notify ing to the affairs of the institution for the institution, and its district bank in inspection to any examiner or to any the case of an association, and shall lawful agent of the Farm Credit Ad- publish a notice of the appointment in ministration Board. the FEDERAL REGISTER. 314 VerDate Sep<11>2014 14:14 Apr 02, 2021 Jkt 253041 PO 00000 Frm 00324 Fmt 8010 Sfmt 8010 Q:\12\12V7.TXT PC31 kpayne on VMOFRWIN702 with $$_JOB Farm Credit Administration § 627.2725 (d) In the case of the voluntary or in- (1) Exercise all powers as are con- voluntary liquidation of an associa- ferred upon the officers and directors of tion, the district bank shall institute the institution under law and the char- appropriate measures to minimize the ter, articles, and bylaws of the institu- adverse effect of the liquidation on tion. those borrowers whose loans are pur- (2) Take any action the receiver con- chased by or otherwise transferred to siders appropriate or expedient to another System institution. carry on the business of the institution (e) Upon the issuance of the order during the process of liquidating its as- placing a Farm Credit institution into sets and winding up its affairs. liquidation and appointing the Insur- (3) Extend credit to existing bor- ance Corporation as receiver, all rowers as necessary to honor existing rights, privileges, and powers of the commitments and to effectuate the board of directors, officers, and em- purposes of the receivership. ployees of the institution shall be vest- (4) Borrow such sums as necessary to ed exclusively in the receiver. The effectuate the purposes of the receiver- Farm Credit Administration Board ship. may simultaneously, or any time (5) Pay any sum the receiver deems thereafter, cancel the charter of the in- necessary or advisable to preserve, con- stitution. serve, or protect the institution’s as- sets or property or rehabilitate or im- [57 FR 46482, Oct. 9, 1992, as amended at 63 FR prove such property and assets. 5724, Feb. 4, 1998] (6) Pay any sum the receiver deems § 627.2725 Powers and duties of the re- necessary or advisable to preserve, con- ceiver.
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