Stock requirements are at the sole discretion of the board of directors based on the association's capital strength and financial performance. They cannot be retired on demand or on a certain date. However, the association board has policies and procedures to maintain adequate capital and allow for the orderly retirement of stock, when requested by a stockholder, in a safe and sound manner.
When you have repaid your loan and finished with your financially related services, one of the following may happen:
- You may elect to use the stock value to capitalize other debts with the association.
- Your stock may be retired and the proceeds repaid to you either when your loan is repaid or at a future date as determined by the board of directors.
- Stock will not be retired if the association fails to meet the capital adequacy standards of both the Farm Credit Administration and association bylaws.