Termination of System institution status

12 U.S.C. § 2279d
in effect
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(a) ConditionsA System institution may terminate the status of the institution as a System institution if—(1) the institution provides written notice to the Farm Credit Administration Board not later than 90 days prior to the proposed termination date; (2) the termination is approved by the Farm Credit Administration Board; (3) the appropriate Federal or State authority grants approval to charter the institution as a bank, savings and loan association, or other financial institution; (4) the institution pays to the Farm Credit Insurance Fund the amount by which the total capital of the institution exceeds 6 percent of the assets; (5) the institution pays or makes adequate provision for payment of all outstanding debt obligations of the institution; (6) the termination is approved by a majority of the stockholders of the institution voting, in person or by written proxy, at a duly authorized stockholders’ meeting, held prior to giving notice to the Farm Credit Administration Board; and (7) the institution meets such other conditions as the Farm Credit Administration Board by regulation considers appropriate. (b) EffectOn termination of its status as a System institution—(1) the Farm Credit Administration Board shall revoke the charter of the institution; and (2) the institution shall no longer be an instrumentality of the United States under this chapter.

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