12 C.F.R. Subpart D—Notice to Shareholders
Title 12 - Banks and Banking
Source: 62 FR 15093, Mar. 31, 1997, unless otherwise noted.
(a) Each Farm Credit bank and direct lender association shall prepare and provide the Farm Credit Administration and shareholders a notice, within 30 days following the month end that the institution initially determines that it is not in compliance with the minimum permanent capital standard prescribed under §615.5205 of this chapter. (b) An institution that has given notice to shareholders pursuant to paragraph (a) of this section or subsequent notice pursuant to this paragraph shall also prepare and provide the Farm Credit Administration and shareholders a notice within 45 days following the end of any subsequent quarter at which the institution's permanent capital ratio decreases by one-half of 1 percent or more from the level reported in the most recent notice provided to shareholders. (c) Each institution required to prepare a notice under paragraphs (a) or (b) of this section shall provide the notice to shareholders or publish it in any publication with circulation wide enough to be reasonably assured that all of the institution's shareholders have access to the information in a timely manner. [67 FR 16634, Apr. 8, 2002] (a) The information required to be in a notice must be conspicuous, easily understandable, and not misleading. (b) A notice, at a minimum, shall include: (1) A statement that: (i) Briefly describes the regulatory minimum permanent capital standard established by the Farm Credit Administration and the notice requirement of §620.15(a); (ii) Indicates the institution's current level of permanent capital; and (iii) Notifies shareholders that the institution's permanent capital is below the Farm Credit Administration regulatory minimum standard. (2) A statement of the effect that noncompliance has had on the institution and its shareholders, including whether the institution is currently prohibited by statute or regulation from retiring stock or distributing earnings or whether the Farm Credit Administration has issued a capital directive or other enforcement action to the institution. (3) A complete description of any event(s) that may have significantly contributed to the institution's noncompliance with the minimum permanent capital standard. (4) A statement that the institution is required by regulation to provide another notice to shareholders within 45 days following the end of any subsequent quarter at which the institution's permanent capital ratio decreases by one half of one percent or more from the level reported in the notice. [62 FR 15093, Mar. 31, 1997, as amended at 67 FR 16634, Apr. 8, 2002]
Title 12: Banks and Banking
PART 620—DISCLOSURE TO SHAREHOLDERS
Subpart D—Notice to Shareholders
§ 620.15 Notice.
§ 620.17 Contents of the notice.
