If a shareholder's excess stock equals or exceeds the amount allocated, the Bank will repurchase the full amount allocated to that shareholder. If a shareholder's excess stock is less than the amount allocated, the Bank will repurchase all of the shareholder's excess stock. If a shareholder has no excess stock on the repurchase date, the Bank will not repurchase any stock from that shareholder. Shareholders with excess stock on the repurchase date may not opt out of the repurchase.
A shareholder may identify which shares of excess capital stock are to be repurchased by notifying the Bank in writing on or before November 10, 2011. If a shareholder does not notify the Bank of the shares to be repurchased in writing before the repurchase date, the Bank will repurchase the excess stock on a last-in, first-out (LIFO) basis, excluding stock dividends previously credited. If a shareholder does not have enough purchased shares for the repurchase, the Bank will repurchase the necessary amount of stock dividend shares on a LIFO basis after repurchasing all purchased shares. In any case, if a member has submitted a Notice of Redemption on any shares of excess capital stock, those shares will be repurchased first.
We will credit the proceeds from the repurchase of excess capital stock to each shareholder's Settlement/Transaction Account with the Bank on November 14, 2011. Please note that the funds will become available for withdrawal on the following business day.
For more information about the repurchase of excess capital stock, please contact your Relationship Manager or Craig Wolgamott, Assistant Vice President, Accounting Operations, at (415) 616-2634 or email@example.com.
President and Chief Executive Officer
cc: Chief Financial Officer