Statute: 1971 ACT AS AMENDED
Title: Title VII Restructuring of System Institutions
Subtitle: Subtitle B Mergers, Transfers of Assets, and Powers of Associations Within a District
Chapter Name: Chapter 4 Termination and Dissolution of Institutions
U.S. Code Citation: 12 U.S.C. 2279d
Chapter 4—Termination and Dissolution of Institutions
12 U.S.C. 2279d SEC. 7.10. TERMINATION OF SYSTEM INSTITUTION STATUS.
(a) CONDITIONS. A 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 the Farm Credit Assistance Fund, as created under section 6.25, if the termination is prior to January 1, 1992, 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;
(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) EFFECT. On 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 Act.
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