Conditions
A System institution may terminate the status of the institution as a System institution if—
the institution provides written notice to the Farm Credit Administration Board not later than 90 days prior to the proposed termination date;
the termination is approved by the Farm Credit Administration Board;
the appropriate Federal or State authority grants approval to charter the institution as a bank, savings and loan association, or other financial institution;
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;
the institution pays or makes adequate provision for payment of all outstanding debt obligations of the institution;
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
the institution meets such other conditions as the Farm Credit Administration Board by regulation considers appropriate.
Effect
On termination of its status as a System institution—
the Farm Credit Administration Board shall revoke the charter of the institution; and
the institution shall no longer be an instrumentality of the United States under this chapter.
Pub. L. 92–181, title VII, § 7Pub. L. 100–233, title IV, § 416101 Stat. 1650Pub. L. 115–334, title V, § 5411(41)132 Stat. 4683(.10, as added , , ; amended , , .)
Editorial Notes
Amendments
Pub. L. 115–334section 2278b–5 of this title2018—Subsec. (a)(4). added par. (4) and struck out former par. (4) which read as follows: “the institution pays to the Farm Credit Assistance Fund, as created under , if the termination is prior to , or pays to the Farm Credit Insurance Fund, if the termination is after such date, the amount by which the total capital of the institution exceeds, 6 percent of the assets;”.