republic-os/legal/us/code/title-12/chapter-23/section-2124.md

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LegalText	12 U.S.C. § 2124	Stock of banks for cooperatives	us	united_states_code	code_section	12	BANKS AND BANKING	23	FARM CREDIT SYSTEM	2124	12 U.S.C. § 2124	current	119-100	2026-06-26	official	https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc12@119-100.zip	/us/usc/t12/s2124	data/legal/raw/us/code/title-12/usc12.xml	82c6747cd9ecec96d4a35eb7a3bb1c9c61cde91dc3d2d2bf1cb91d12eaae7b7a	e6b98700ef4156ac33fde5d105824845d727afa91a53f3762be2cf4d1a3b01fa	36c7debf46657cf62ed3ab6f71a1a314bffcdc51dd91afc3ddb97d8d6c2599d2	2026-07-04	official	legal us-code

12 U.S.C. § 2124 - Stock of banks for cooperatives

Text

(a) Amount The Capital stock of each bank for cooperatives shall be in such amount as its board determines is required for the purpose of providing adequate capital to permit the bank to meet the credit needs of borrowers from the bank and such amounts may be increased or decreased from time to time in accordance with such needs.

(b) Value The capital stock of each bank shall be divided into shares of par value of $100 each and may be of such classes as the board may determine. Such stock may be issued in fractional shares.

(c) Eligible holders of voting stock Voting stock may be issued or transferred to and held only by (i) cooperative associations eligible to borrow from the banks 11 So in original. There probably should be a semicolon after “banks”. (ii) other categories of persons and entities described in sections 2128 and 2129 of this title eligible to borrow from the bank, as determined by the bank’s board of directors; and (iii) other banks for cooperatives, and shall not be otherwise transferred, pledged, or hypothecated except as consented to by the issuing bank under regulations of the Farm Credit Administration.

(d) Entitlement to vote Each holder of one or more shares of voting stock which is eligible to borrow from a bank for cooperatives shall be entitled only to one vote and only in the affairs of the bank in the district in which its principal office is located unless otherwise authorized under regulations issued by the Farm Credit Administration, except that if such holder has not been a borrower from the bank in which it holds such stock within a period of two years next preceding the date fixed by the Farm Credit Administration prior to the commencement of voting, it shall not be entitled to vote.

(e) Nonvoting investment stock Nonvoting investment stock may be issued in such series and in such amounts as may be determined by the board and may be exchanged for voting stock or sold or transferred to any person subject to the approval of the issuing bank.

(f) Participation certificates Participation certificates may be issued to parties to whom voting stock may not be issued.

(Pub. L. 92–181, title III, § 3.3, Dec. 10, 1971, 85 Stat. 603; Pub. L. 96–592, title III, § 302, Dec. 24, 1980, 94 Stat. 3443; Pub. L. 99–205, title II, § 205(e)(3), (4), Dec. 23, 1985, 99 Stat. 1705; Pub. L. 100–233, title VIII, §§ 802(o), 805(k), Jan. 6, 1988, 101 Stat. 1712, 1715; Pub. L. 110–234, title V, §§ 5402, 5403(a), May 22, 2008, 122 Stat. 1154; Pub. L. 110–246, § 4(a), title V, §§ 5402, 5403(a), June 18, 2008, 122 Stat. 1664, 1915.)

Notes

Editorial Notes

Codification Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.

Amendments2008—Subsec. (b). Pub. L. 110–246, § 5402, which directed substitution of “par” for “per”, could not be executed because “per” did not appear. Subsec. (c)(ii), (iii). Pub. L. 110–246, § 5403(a), added cl. (ii) and redesignated former cl. (ii) as (iii). 1988—Subsec. (a). Pub. L. 100–233, § 802(o)(1), struck out “, with the approval of Farm Credit Administration,” after “board determines”. Subsec. (b). Pub. L. 100–233, § 802(o)(2), struck out “with the approval of the Farm Credit Administration” after “board may determine”. Subsec. (d). Pub. L. 100–233, § 805(k), substituted “by” for “by by” after “regulations issued”. Subsec. (e). Pub. L. 100–233, § 802(o)(3), struck out “and approved by the Farm Credit Administration” after “Board”. 1985—Subsec. (d). Pub. L. 99–205, § 205(e)(3), inserted “under regulations issued by” after “authorized”. Subsec. (e). Pub. L. 99–205, § 205(e)(4), struck out “, except for stock held by the Governor,” before “may be exchanged”. 1980—Subsec. (f). Pub. L. 96–592 added subsec. (f).

Statutory Notes and Related Subsidiaries

Effective Date of 2008 AmendmentAmendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of Title 7, Agriculture.

Effective Date of 1985 AmendmentAmendment by Pub. L. 99–205 effective thirty days after Dec. 23, 1985, see section 401 of Pub. L. 99–205, set out as a note under section 2001 of this title.