Treatment of associations not approving districtwide mergers.

§ 611.1125 Treatment of associations not approving districtwide mergers. (a) Issuance of charters. When issuing charters or certificates of territory for districtwide mergers or consolidations of associations, the FCA will not issue any charters or certificates of territory that include the territory of one or more associations whose stockholders voted to disapprove the merger or consolidation. (b) A funding bank must not take any of the following actions with respect to an association that has determined to not participate in a districtwide merger or consolidation: (1) Discriminate in the provision of any financial service and assistance, including, but not limited to, access to loan funds and rates of interest on loans and discounts offered by the funding bank to associations and their member/borrowers; (2) Discriminate in the provision of any related services that are offered by the funding bank to associations and their member/borrowers; (3) Discriminate in the provision of any professional assistance that may be normally provided by the funding bank to associations; or (4) Discriminate in the provision of any technical assistance that may be normally provided by the funding bank to associations. (c) This regulation does not prohibit a funding bank from taking any action with respect to an association, including, but not limited to, charging different rates of interest or different prices for services, or declining to provide financial assistance; provided that any such action is fully documented and based on an objective analysis of applicable criteria that are uniformly and consistently applied by the funding bank to all associations in the district. [51 FR 32443, Sept. 12, 1986, as amended at 60 FR 34099, June 30, 1995; 80 FR 51121, Aug. 24, 2015]