---
kind: "section"
citation: "12 C.F.R. § 615.5245"
title: "12"
number: "615.5245"
heading: "Limitations on association preferred stock."
url: "https://uscodex.org/cfr/12/615.5245"
---

# §615.5245. Limitations on association preferred stock.

- (a) The board of directors of each association offering preferred stock must adopt a policy that addresses the association's conditions or limits on the amount of preferred stock that any one holder, or small number of holders may acquire.
- (b) Each association offering preferred stock must make the stock available for purchase to each of its members on the same basis.
- (c) An association may not extend credit for purchases of preferred stock in the association.

## Notes

### Amendments

[70 FR 53908, Sept. 13, 2005]

### Source

Source: 53 FR 40046, Oct. 13, 1988, unless otherwise noted.

### Authority

Authority: Secs. 1.5, 1.7, 1.10, 1.11, 1.12, 2.2, 2.3, 2.4, 2.5, 2.12, 3.1, 3.7, 3.11, 3.25, 4.3, 4.3A, 4.9, 4.14B, 4.25, 5.9, 5.17, 8.0, 8.3, 8.4, 8.6, 8.8, 8.10, 8.12 of the Farm Credit Act (12 U.S.C. 2013, 2015, 2018, 2019, 2020, 2073, 2074, 2075, 2076, 2093, 2122, 2128, 2132, 2146, 2154, 2154a, 2160, 2202b, 2211, 2243, 2252, 2279aa, 2279aa-3, 2279aa-4, 2279aa-6, 2279aa-8, 2279aa-10, 2279aa-12); sec. 301(a), Pub. L. 100-233, 101 Stat. 1568, 1608, as amended by sec. 301(a), Pub. L. 103-399, 102 Stat 989, 993 (12 U.S.C. 2154 note); sec. 939A, Pub. L. 111-203, 124 Stat. 1326, 1887 (15 U.S.C. 78o-7 note).

### Amendments

[70 FR 53908, Sept. 13, 2005]