§ 933.28 - Automatic termination of membership for institutions placed in receivership.

(a) Automatic termination. As of the effective date of being placed in receivership, an institution's Bank membership automatically terminates.

(b) Treatment of outstanding advances and Bank stock. The liquidation of any outstanding indebtedness owed to the Bank in which membership has been terminated and redemption of stock of such Bank shall be carried out in accordance with § 933.29 of this part.

(c) Dividends on Bank stock. The receiver is entitled to receive dividends on outstanding Bank stock of the institution placed in receivership in accordance with section 6(g) of the Act, 12 U.S.C. 1426(g), and § 934.17 of this chapter.