{"identifier":"/us/usc/t12/s2279d","title":12,"num":"\u00a7\u202f2279d.","heading":"Termination of System institution status","text":"\u00a7\u202f2279d.\nTermination of System institution status\n(a)\nConditions\nA System institution may terminate the status of the institution as a System institution if\u2014\n(1) the institution provides written notice to the Farm Credit Administration Board not later than 90 days prior to the proposed termination date;\n(2) the termination is approved by the Farm Credit Administration Board;\n(3) the appropriate Federal or State authority grants approval to charter the institution as a bank, savings and loan association, or other financial institution;\n(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;\n(5) the institution pays or makes adequate provision for payment of all outstanding debt obligations of the institution;\n(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\u2019 meeting, held prior to giving notice to the Farm Credit Administration Board; and\n(7) the institution meets such other conditions as the Farm Credit Administration Board by regulation considers appropriate.\n(b)\nEffect\nOn termination of its status as a System institution\u2014\n(1) the Farm Credit Administration Board shall revoke the charter of the institution; and\n(2) the institution shall no longer be an instrumentality of the United States under this chapter.","url":"https://projectusc.org/usc/t12/s2279d.html","content":[{"t":"sec","id":"/us/usc/t12/s2279d","children":[{"t":"num","text":"\u00a7\u202f2279d."},{"t":"heading","text":"Termination of System institution status"},{"t":"subsec","id":"/us/usc/t12/s2279d/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Conditions"},{"t":"chapeau","text":"A System institution may terminate the status of the institution as a System institution if\u2014"},{"t":"para","id":"/us/usc/t12/s2279d/a/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" the institution provides written notice to the Farm Credit Administration Board not later than 90 days prior to the proposed termination date;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s2279d/a/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" the termination is approved by the Farm Credit Administration Board;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s2279d/a/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" the appropriate Federal or State authority grants approval to charter the institution as a bank, savings and loan association, or other financial institution;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s2279d/a/4","children":[{"t":"num","text":"(4)"},{"t":"content","text":" 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;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s2279d/a/5","children":[{"t":"num","text":"(5)"},{"t":"content","text":" the institution pays or makes adequate provision for payment of all outstanding debt obligations of the institution;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s2279d/a/6","children":[{"t":"num","text":"(6)"},{"t":"content","text":" 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\u2019 meeting, held prior to giving notice to the Farm Credit Administration Board; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s2279d/a/7","children":[{"t":"num","text":"(7)"},{"t":"content","text":" the institution meets such other conditions as the Farm Credit Administration Board by regulation considers appropriate.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s2279d/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Effect"},{"t":"chapeau","text":"On termination of its status as a System institution\u2014"},{"t":"para","id":"/us/usc/t12/s2279d/b/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" the Farm Credit Administration Board shall revoke the charter of the institution; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s2279d/b/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" the institution shall no longer be an instrumentality of the United States under this chapter.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}