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Code · STATUTE-COMPILATIONS · Farm Credit Act of 1971 · Sec. 7.10

Sec. 7.10. TERMINATION OF SYSTEM INSTITUTION STATUS

255 words·~1 min read·/statute-compilations/comps-10314/sec-7-10

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## SEC. 7.10 TERMINATION OF SYSTEM INSTITUTION STATUS **[**[12 U.S.C. 2279d](/us/usc/t12/s2279d)**]** ###
(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 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)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. ## subtitle C Approval of Disclosure Information and Issuance of Charters by the Farm Credit Administration Board
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Sec. 7.10
TERMINATION OF SYSTEM INSTITUTION STATUS
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